More social spending coming as cabinet approves FY 2023-2024 budget

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What We're Tracking Today

It’s interest rate day. PLUS: Introducing Enterprise Logistics.

Good morning, wonderful people, and happy last day of 1Q 2023 — and the end of the first full week of Ramadan. It’s another super-busy news day, so we’re going to jump right in after this brief programming announcement:

It’s a special day for us here at Enterprise World HQ as we mark the launch this morning of Enterprise Logistics, which joins Enterprise Climate in our new portfolio of MENA-focused industry publications.

Enterprise Logistics unpacks the industry that connects each and every one of our businesses, diving into everything from AI to green fuel, from ports and inland warehouses to last-mile delivery. Enterprise Logistics publishes Monday-Thursday at 4:15am CLT / 5:15am KSA / 6:15am UAE.

MORNING MUST-READ- AI makers are starting to get scared of the AI they’re making: Elon Musk, Apple co-founder Steve Wozniak, and author Yuval Noah Harari are among 1k bold-faced names demanding a temporary freeze on the development of AI systems so we can take the time to sort out what it could all mean for humanity. In an open letter penned by the Future of Life Institute, the tech heads called for a pause on the advancement of ChatGPT-like programs to take stock, warning “human-competitive intelligence” could cause “dramatic economic and political disruptions” to society.The signatories of the letter want stronger regulation and safety protocols before the tech is developed any further.

ChatGPT and its ilk are inspiring shock and awe: Some are worried AI is going to wipe out mns of jobs, while others — like Bill Gates and journalist Tom Friedman — see it as the next great leap for the evolution of the species.

SIGN OF THE TIMES- GitHub just laid off nearly its entire Indian workforce: The Microsoft-owned developer platform let go almost all its Indian engineers as part of more than 100 layoffs across South Asia as a weak economy forces firms across the tech industry to make cuts, TechCrunch reports. GitHub in February said it would look to cut around 10% of its workforce by the end of 1Q.

Developers have been at the forefront of ChatGPT adoption, but a growing number are worried that the technology could result in there being fewer future jobs for coders.

SO, WHEN DO WE EAT?We’ll be breaking our fasts this evening at 6:11pm CLT and you’ll have until 4:19am tomorrow to hydrate and have a bite to eat.

NEWS UPDATE-

More on A Developments, which just landed an agreement with our friends at the SFE to develop the former Interior Ministry HQ in Downtown Cairo: Founded by CEO Ahmed Osman, Reliance Group and SwissChem, A Developments is a newly-established real estate developer focused on adaptive reuse projects and boutique developments. The firm will invest EGP 800 mn to redevelop the Interior Ministry’s former headquarters in the downtown area of Lazoghly into a tech and business hub. The company is currently lining up funding from domestic banks for the project, Osman tells us.

Expect more announcements soon: A Developments is close to signing an agreement with a leading hotel chain to manage two buildings in the complex, including a three-star, youth-oriented hotel as well as long-stay serviced apartments, Osman tells us. The company is also in advanced talks with a leading international outsourcing company and a major US VC fund, he said, and has recorded strong interest from potential tenants.

A vision we can get behind: “Our vision is to help in transforming Downtown Cairo to become a premium destination to complement the great work done by other developers such as Al-Ismaelia and to add to the startup ecosystem created by Consoleya, the Greek Campus, and Founders Space, as well as others in the pipeline,” Osman tells us.

That’s not all: As well as landing the Lazoghly project from the Sovereign Fund of Egypt, A Developments is also working on a residential development in Sheikh Zayed featuring 29 homes.

HAPPENING TODAY-

It’s interest rate day: The Central Bank of Egypt will meet today to review interest rates. Six of seven analysts we polled expect the Monetary Policy Committee to hike rates by at least 200 bps as it tries to tamp down inflation and boost FX liquidity amid continued pressure on the EGP. A Reuters poll out earlier this week sees a median forecast 200-bps hike, while seven of 15 pundits surveyed expect a rise of 300 bps.

Will it also be devaluation day? Some analysts have speculated that the central bank may choose to devalue the EGP to coincide with the MPC meeting. A continued shortage of FX has caused USD rates in the parallel and derivatives markets to widen significantly from the official rate in recent days.

Cambodian Deputy Prime Minister and Foreign Minister Prak Sokhonnwraps up his two-day visit to Cairo today.

A first look at next year’s state budget? The Finance Ministry has to deliver the draft FY 2023-2024 budget to the House of Representatives by tomorrow at the latest. We have a few more details from the draft budget after the cabinet signed off on it yesterday. Head to this morning’s news well, below, for more details.

THE BIG STORY ABROAD- Abu Dhabi has a new crown prince: UAE President Mohammed bin Zayed Al Nahyan has issued a decree appointing his eldest son Sheikh Khaled bin Mohamed bin Zayed Al Nahyan as Abu Dhabi’s crown prince, according to state news agency WAM. His appointment marks a “generational shift” among UAE rulers, with the president choosing a son rather than a brother to take over office, Bloomberg writes.

Further afield, there is no single story dominating the global front pages this morning:

America + guns: Enough said. (Reuters | New York Times | Washington Post)
Ukraine latest: Russian forces are apparently making gains in the battle for the key city of Bakhmut. (Reuters)
Mark Zuckerberg did a brand switch to something even he’s already bored with: Beating us to the “Meh-taverse” zinger, the Wall Street Journal reports that companies are winding down divisions focused on Facebook’s Meta’s much-hyped Metaverse virtual reality platform and pivoting to AI. Disney and Microsoft have both abandoned their VR ventures, and even Zuckerberg himself made little mention of the Metaverse in an earnings call in February.

We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on Monday, 15 May at the Four Seasons Hotel at Nile Plaza.

DO YOU WANT TO ATTEND? The first wave of invites is going out soon. If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please TAP OR CLICK HEREto request a spot at this exclusive event.

WANT TO SHARE YOUR STORY ON STAGE? Drop a note to Patrick here and let’s talk.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

Peaceful moments. Plentiful experiences. A Ramadan escape like no other at Somabay. Book an unforgettable Ramadan escape and experience ultimate relaxation this Ramadan by Somabay’s breathtaking coastline. For more information and booking inquiries, please email info@stayr.somabay.com, contact us via telephone or WhatsApp on +2(0) 015 5600 5693, or visit our websites: somabay.com and somabayholidays.com.

Egyptian cabinet approves draft FY 2023-2024 budget, will spend more on social safety net

Expect more social spending in the FY 2023-2024 budget: The Madbouly government plans to increase spending on food and fuel subsidies in the coming fiscal year as it aims to cushion the impact of soaring inflation on lower-income households, the Finance Ministry said in a statement yesterday. The ministry will increase by 28% its spending on social safety programs and has raised allocations to food subsidies by 20% and fuel subsidies by 24% in its draft FY 2023-2024 budget, which was approved by ministers at the weekly cabinet meeting yesterday.

According to our math: This will raise social spending to around EGP 455 bn, while EGP 108 bn will be spent on food subsidies and EGP 35.9 bn on fuel.

This comes as no surprise: The government recently announced a EGP 150 bn programof fresh social support, wage increases, and pension hikes in response to inflation, which reached fresh five-year highs last month.

ANOTHER GDP DOWNGRADE-

The Finance Ministry trimmed its economic growth forecast for the second time this month — it’s now targeting 4.1% growth in FY 2023-2024. Ministry forecasts out last week penciled in 5.0% growth for the coming fiscal year, down from 5.5% previously.

Budget targets unchanged: The ministry expects to deliver a 2.5% primary surplus and a budget deficit of 6.4%, targets that are unchanged from last week. The draft budget sees revenues increasing 31% to EGP 2 tn and spending increasing 30.5% to EGP 2.8 tn.

REMEMBER- This fiscal year we could be looking at a growth of somewhere between 4.4%-5%. The Planning Ministry had revised downwards our economic growth expectation for FY 2022-2023 to around 5% down from the 5.5% the Finance Ministry anticipated in the draft budget.

Inflation to finally slow down: The draft budget is expecting inflation rates to sit at an estimated 16%, half of what it currently is. Inflation jumped to a five-year high last month with a 31.9% y-o-y increase on the back of soaring food prices and the depreciation of the EGP.

What’s next: The budget will be passed to the House for discussion ahead of a final vote that has to take place before the start of the next fiscal year on 1 July.

Saudi investors could bid for AAIB’s stake in Palm Hills -report

More Gulf investors are reportedly interested in Palm Hills: Unnamed Saudi investors are mulling the acquisition of Arab African International Bank’s (AAIB) 12.9% stake in EGX-listed Palm Hills Developments (PHD) as the bank looks to exit the high-profile real estate developer, sources familiar with the matter are quoted as telling Al Mal.

Market reax: Palm Hills shares gained 0.4% yesterday to close at EGP 1.87.

This is not the first offer AAIB has reportedly fielded from the Gulf: AAIB was looking to sell its entire stake in PHD to Emirati investment company Al Ain Holding, Asharq Business reported in February. We haven’t heard anything on Al Ain’s offer since.

Why would AAIB exit? The bank hasn’t publicly confirmed it wants to sell its stake in PHD, but a sale makes sense when you consider AAIB is on the state’s list of 32 companies earmarked for sale under the rebooted privatization program. Divesting the AAIB stake would make the bank simpler to value. The bank, one of three on the sale list, is owned by the Central Bank of Egypt and the Kuwaiti sovereign wealth fund.

The exit strategy: AAIB is reportedly aiming to sell its shares in PHD at EGP 2.50-3.00 apiece, a price that would roughly equal in USD terms what it paid to acquire the stake nearly three years ago. The bank entered PHD in July 2020, purchasing a 12.25% stake (381.9 mn shares) at an average price of EGP 1.43 each from UPP Capital Investment. AAIB’s target sale price accounts for the devaluation of the EGP, which has lost almost half of its value since the first devaluation last March.

AAIB wants above market price: The offer represents a 34-61% premium to PHD’s share price of EGP 1.86 at market close on Tuesday. PHD shares’ most recent peak was EGP 2.30 at the end of January.

PHD’s shareholder structure: AAIB is Palm Hills’ second-largest shareholder after the company’s founding Mansour family, which collectively owns around 49%. The remaining stake is divided among minority shareholders and freefloat shares on the EGX.

Gulf investors are eyeing our real estate sector: The UAE’s Aldar and ADQ together acquired more than 85% of upmarket real estate developer SODIC in late 2021.

Compass Capital could launch new bid for Pachin as Eagle Chemicals’ MTO goes live

Eagle Chemicals’ rival bid for Pachin goes live today: Shareholders of state-owned Paint and Chemical Industries (Pachin) have until market close on 12 April to decide whether sell shares to Eagle Chemicals or National Paints Holding (NPH), which have launched rival mandatory tender offers (MTO) for the EGX-listed firm. In a statement yesterday, the EGX said that Eagle Chemicals’ 10-day MTO will open on Thursday, and that NPH’s offer — which had been set to close on 4 April — has been extended and will now wrap on the same date.

The offers: Eagle Chemicals is offering to acquire at least 75% of Pachin for EGP 37.00 per share, EGP 1.00 higher than the rival bid submitted by National Paints Holding (NPH) last week.

Is Compass Capital planning a comeback? Compass Capital has reportedly wrapped up its due diligence on Pachin and is preparing to submit a rival MTO within days, Al Mal reports citing unnamed sources it says are close to the matter. Information about Compass’ potential revised offer including the targeted stake size and the price tag per share wasn’t disclosed. Compass in January submitted a non-binding offer to acquire a majority stake of 51-90% in Pachin for EGP 30.00 per share.

Pachin in the black: Pachin’s bottomline hit EGP 19.5 mn in 2H 2022, a turnaround from losses of EGP 12.8 mn in 2H 2021, according to a statement to the bourse.

Advisors: Al Ahly Pharos is financial advisor to Pachin while Shalakany Law Office is counsel. Nour Law Office is buy-side counsel to Eagle Chemicals alongside Al Tamimi & Company. Matouk Bassiouny & Hennawy are acting as NPH’s legal counsel, while Marei, Fayez, Dardiry & Partners is legal advisor to Compass Capital. HC Brokerage is brokering the transaction.

Spinneys Egypt to open 12 new branches by mid-2024

Spinneys to invest EGP 450 mn to support cross-country expansion:Supermarket chain Spinneys Egypt will deploy some EGP 450 mn to open a dozen new stores across the country by mid-2024, CEO Mohanad Adly(LinkedIn) confirmed to Enterprise. The company expects the expansion to increase sales by 30%, Adly added. The news was first picked up by Al Borsa.

Twelve new branches by mid-2024: Spinneys is spending around EGP 200 mn on six new branches, all of which should be complete by the end of June. The company opened a Mohandeseen branch in November 2022, is finalizing the construction of four more branches in Mansoura, Alexandria, Mohandeseen, and Obour, and is in talks for land for another store in Sheikh Zayed. The chain plans to spend EGP 250 mn on another seven branches next fiscal year, including one at the new administrative capital.

The investment will expand Spinneys branch network by more than 50%: The company currently operates 22 stores across Cairo, Giza, Alexandria, Minya, Menoufia, Gharbia, Matrouh, and Red Sea governorate.

An e-commerce push is also on the agenda: The grocery retailer plans to invest in the development of its online platform to raise its contribution to total sales from 15% to more than 20% within the next three years. The platform was launched at the onset of the pandemic to meet the burgeoning demand for online shopping and has since grown significantly, Adly said.

Acquisitions are on the company’s radar: Spinneys is mulling acquisitions as a way to support horizontal expansion and accelerate customer acquisition, Adly said. The company looked into two potential acquisitions last year but ruled them out after a study, he added.

Gov’t to ease payment terms for industrial land purchases. PLUS: Bosch subsidiary + Turkey’s Beko get golden licenses

Investors could soon pay for their industrial land purchases in installmentsafter the cabinet greenlit a draft decision that would give payment terms to investors, manufacturers, and private-sector players. The terms would apply to industrial land with hooked-up utilities; the move is designed to make it easier for industrial investors to acquire land as cabinet looks to boost manufacturing.

In detail: According to the new mechanism, investors will pay 10% of the land’s value as a downpayment. They will then have a two-year grace period to build their factories, before they start making quarterly payments over the next four years.

TWO MORE GOLDEN LICENSES-

Two home appliance factories are getting their golden licenses: Cabinet has signed off on golden licenses for Bosch subsidiary BSH Home Appliances and Turkish retailer Beko. BSH’s golden license will go towards its EUR 30 mn oven factory in Tenth of Ramadan City, which is expected to come online next year, while Beko’s will help fast track its USD 100 mn home appliances factory, also being constructed in Tenth of Ramadan.

Golden licenses? Golden licenses fast-track new industrial and infrastructure projects. Also known as “single approval licenses,” they allow investors to require only one approval that covers everything from establishing the project, land allocation and building licensing, through to operation and management.

TAKE YOUR TIME, EXPATS-

Expat car import scheme facilities get the stamp of approval: Expats now have five years to bring their vehicles into the country instead of one year, after the cabinet greenlit a series of facilities aimed at increasing demand for its car import scheme and bring in more hard currency. The age of vehicles imported under the scheme should not exceed three years by the time of customs clearance under the changes.

AND…

Cabinet also approved:

Facilities for real estate players, that includes a 20% deadline extension on projects and a reduction of the interest rate paid on installments.
International funding for the Sokhna-Alex high-speed rail link from European banks, the cabinet said, without disclosing further info.
Palm Hills’ Badya University, which will include eight faculties and will kick off operations for the upcoming academic year in September.
A draft presidential decree to join two international road traffic conventions that establish a unified set of traffic rules between signatory countries.
More presidential pardons: A number of detainees will be released on the occasion of Eid El Fitr and Sinai’s liberation.

Egyptian finance ministry to announce desalination bidders in coming 10 days. PLUS: Alex Metro tender winners announced in 2 weeks.

FinMin to announce the names of the qualifying bidders for desalination tender:The Finance Ministry to announce within 10 days the names of the qualifying bidders for desalination projects the government is tendering to the private sector, a senior government source with first-hand knowledge of the process told Enterprise on Tuesday. Some 3-4 plants will be tendered in June, the source said, adding that the ministry is ascertaining the size of the required investment against the backdrop of global inflation and a weaker EGP. Prequalification for the plants closed in December.

AND- The gov’t is mulling fresh PPP projects: The government is currently reviewing a fresh package of public-private-partnership projects to be presented to the higher committee for partnerships in sectors of water, sewage, industrial drainage, and electricity distribution stations, the source told us. This will be followed by another package of projects in the health, transport, youth and sports sectors, the source added.

How many desalination plants? Sovereign Fund of Egypt boss Ayman Soliman said in December that he expects the government to sign contracts for 21 plants in 2023. The plants will process a combined 3.3 mn cubic meters of water per day, and make up the initial phase of the wider program which is expected to add 8.8 mn cbm/d of capacity. Four plants of the first phase would likely be located on the Marsa Matrouh and Alamein coasts, Atter Hannoura, director of the Finance Ministry’s PPP unit, told Enterprise back in December.

Who could be involved? Our friends at Hassan Allam Holding are participating, as are reportedly Al Nowais, Schneider Electric, and a consortium made up of Metito Holdings, Scatec, and Orascom Construction. Acwa Power, which is backed by Saudi sovereign wealth fund Public Investment Fund (PIF), has shown interest in the plants and Bloomberg Asharq last year quoted sources close to the matter as saying that Abu Dhabi’s ADQ, and the Qatari Investment Authority (QIA) were also interested.

REMEMBER- The European Bank for Reconstruction and Development and the International Finance Corporation (IFC) will work with the SFE to provide advice on how to structure and implement four public-private partnership desalination projects.

ALEX METRO WINNERS IN T-MINUS 2 WEEKS-

We’re two weeks away from knowing who will be awarded the Alexandria metro project, unnamed sources reportedly told Al Borsa. Three consortiums have submitted bids for the EUR 1.6 bn project to convert Alexandria’s Abu Qir railway into an underground metro.

Who’s in?

The first consortium includes the French rail manufacturer Alstom, Hassan Allam Holding, Arab Contractors and Concord.
The second is made up of France’s Thales and Orascom Construction.
The third offer came from China Road and Bridge Corporation, China Railway Signal & Communication Co., Concrete Plus, El Soadaa Group, and Adler.

And we’ll know who will supply the rolling stock in July, the source reportedly said. The interested companies include the Korean Hyundai Rotem, Spain’s CAF, China’s Norinco, Italy’s Hitachi Rail, and Russia’s Metrowagonmash.

Egypt’s EFG Hermes appoints new vice president at EFG Hermes Research

Our friends at EFG Hermes have promoted associate vice president Ali Afifi (LinkedIn) to vice president at EFG Hermes Research, he said on LinkedIn yesterday. Afifi has more than nine years of experience in the equity research field, and counts Beltone Financial, Prime Holding and Mubasher Financial Services among his previous employers. He joined EFG Hermes as associate vice president in January 2022.

Clarification on 30 March 2023: The story has been amended to clarify that Afifi has been promoted at EFG Hermes Research.

Egyptian law firms recognized at Chambers Middle East Awards

Youssef & Partners was named Egypt’s dispute resolution law firm of the year and Matouk Bassiouny & Hennawy was awarded the country’s corporate & finance law firm of the year in the Chambers Middle East Awards 2023.

Also getting a mention: Also shortlisted in the dispute resolution category were Adsero-Ragy Soliman & Partners, Matouk Bassiouny, Shahid Law Firm, and Zulficar & Partners. The other shortlisted firms in the corporate and finance category were Baker McKenzie (Helmy, Hamza & Partners), MHR & Partners in association with White & Case LLP, Zaki Hashem & Partners, and Zulficar & Partners.

Mariam El Masry of Zulficar & Partners was shortlisted for Chambers’ Middle East Rising Star Award.

MEANWHILE- Ramsco Sustainable Agricultural Development CEO Rawya Mansour received the CIB Group of Lady Ambassadors 2023 sustainability award, according to an emailed statement. Mansour was recognized for her work on agricultural sustainability, women’s empowerment, and the fight against poverty.

Egyptian talk shows discuss impact of soaring inflation during Ramadan

Soaring food prices was the theme of the night on the airwaves last night:Yahduth Fi Masr’s Sherif Amer hosted a number of women to check in on how they have been coping with rising food prices this Ramadan and share tips and tricks for struggling families to make the most of their meals (watch, runtime: 1:37 | 1:13 | 1:08 | 3:27).

Everyone is feeling the pinch of inflation: “Regardless of your level of income and your level of spending, we’re all struggling with inflationary pressures,” Ala Mas’ouleety’s Ahmed Moussa said (watch, runtime: 4:03), adding that prices are increasing on a weekly basis. Inflation soared to a fresh five-year high in February, jumping to 31.9% y-o-y.

Another vote for a rate hike today: Inflation will push the central bank to move forward with a rate hike when it meets later today, economist Mostafa Badra told Moussa (watch, runtime: 5:01). Badra joins the majority of the economists and analysts we surveyed earlier this week in expecting the bank to raise interest rates to curb soaring inflation.

A new round of high-interest CDs? Badra is expecting (watch, runtime: 6:20) banks to issue high-interest certificates of deposit (CDs) as people withdraw the EGP 750 bn they poured into the National Bank of Egypt and Banque Misr’s one-year certificates launched following the first devaluation last March.

Egyptian lawmakers to vote next week on bringing back daylight saving time. PLUS: News from Cheiron, Bahrain investment, Mytilineos, Madinet Masr / Madinet Nasr, and Rosatom

LEGISLATION WATCH-

Another step closer to changing our clocks twice a year:The House Local Administration Committee approved the draft bill that would see the return of daylight saving. If passed, it would see Cairo Local Time (CLT) pushed forward by one hour from the last Friday of April through to the last Thursday of October.

What’s next? The bill will go to the House for final approval on Sunday.

** We can’t say we’re totally on board with this, but if it happens, can we agree on one thing? Let’s not be like Lebanon.

THE HORROR- Our elected representatives are finally taking action to tackle the scourge of “fake weather news.” Media organizations and social media users could be fined for publishing “fake” weather news under draft legislation approved by the House Tourism and Civil Aviation Committee yesterday. Under the bill, fines ranging between EGP 100k and EGP 5 mn will be handed out for inaccurate reporting of the weather and spreading weather-related rumors. No more false tsunami scares for us.

Does Fido look dangerous to you?The House Agriculture and Irrigation Committee approved a draft bill regulating the possession of dangerous animals and dogs. The bill, drafted by House Local Administration Committee chair, Ahmed El Sigini, includes new controls on personal dog ownership, measures to contain the spread of stray animals, and regulations on the possession of dangerous animals.

ENERGY-

Cheiron Energy is starting to bring new oil wells online in Gulf of Suez: Oil and gas playerCheiron Energy, one of Egypt’s largest independent producers, has started pumping oil from the first of up to seven new oil wells at the GNN field discovered in the Gulf of Suez in 2019, it said in a statement Monday. The first well — GNN-6 — is now producing 4.2k barrels of oil per day (bpd). Two more wells are set to go into operation in the next few weeks, while up to four more are yet to be drilled. The GNN field is estimated to hold more than 300 mn barrels of oil.

Who owns what:Cheiron holds a 60% working interest in the Geisum and Tawila west concession where the GNN field is located, and the remainder is owned by Kuwait Foreign Petroleum Exploration Company (Kufpec).

INVESTMENT-

Bahraini investor could set up USD funds for Egypt investment: A Bahraini investment firm headed by prominent Bahraini banking exec Adnan Ahmed Yousif is considering setting up USD-denominated funds to invest in a range of sectors of the Egyptian economy, according to a cabinet statement. Modern Development and Investment Company could target the financial, real estate, industry, agriculture, education, renewable energy, and strategic commodities sectors, Yousif told Prime Minister Moustafa Madbouly and Financial Regulatory Authority head Mohamed Farid yesterday. Yousif formerly headed up Al Baraka Bank, one of the largest banks in Bahrain.

Greece’s Mytilineos eyes Egypt’s renewables sector: Greek industrial conglomerate Mytilineos said it could invest in solar power plants and storage batteries in Egypt during a meeting in Athens with the General Authority for Freezones and Investment (GAFI) this week, according to a statement. The company is also considering getting involved in the country’s oil and gas sector, infrastructure and “sustainable engineering,” GAFI said.

REAL ESTATE-

Madinet Nasr to become Madinet Masr: EGX-listed Madinet Nasr Housing and Development (MNHD) will rebrand to Madinet Masr to reflect the company’s plans to establish urban cities across the country, CEO Abdallah Sallam said at a presser yesterday, according to Al Mal.

INFRASTRUCTURE-

Rosatom can get started on Dabaa’s third reactor: The Egyptian Nuclear and Radiological Regulatory Authority has given Russian state nuclear company Rosatom a construction permit for the third reactor at the 4.8 GW Dabaa nuclear plant, it said yesterday.

REMEMBER- Rosatom was contracted in 2015 to handle the construction and provide fuel for the plant, which will feature four 1.2-GW reactors. The facility will cost somewhere around USD 30 bn. The company started the eight-year construction last summer.

FINANCE-

Another sukuk fund in the making: Faisal Islamic Bank’s Faisal for Financial Investments wants to launch an EGP 1 bn sukuk fund by the end of 2023, according to Al Mal.

The Gulf is becoming one of the world’s leading IPO hubs

No slowdown for the Gulf IPO boom: Gulf financial markets are becoming a firm fixture for global investors, with no sign of the region’s IPO boom letting up after a record 2022, reports the Financial Times. Big debuts so far in 2023 from the likes of the UAE’s AdnocGas, Presight AI, and Al Ansari Financial Services suggest the IPO pipeline is set to remain healthy in the Middle East and Africa, while Europe and the US continue to struggle, the FT says.

Major hedge funds and investment firms are putting down permanent roots in the Gulf, attracted by Dubai’s no-tax status and convenient time zone. “International investors are coming — big, proper grown-up and respected long-only asset managers in the US and Europe investing with their own people to get ready to make more investments” in the Gulf, one US investment banker told the FT.

Beyond listings of state-owned firms: Gulf IPOs have been dominated by government-owned firms — but listings of private and family-owned businesses like Al Ansari are now coming to the fore, according to Citigroup’s investment banking head Miguel Azevedo. He predicts a third wave of IPOs for “young fintech firms and tech-enabled companies” that have grown with funding from private investors.

SPEAKING OF WHICH-Two Saudi companies are mulling IPOs: Saudi First Mills is looking to make its Tadawul debut in an offering that could value the company at as much as USD 1 bn, people familiar with the matter told Bloomberg. And IT service provider Barq Systems is looking into offering a 20-30% stake on the Saudi bourse in the “coming period,” according to Al Mal.

EGX30	16,411	+3.2% (YTD: +12.4%)
USD (CBE)	Buy 30.84	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	16.25% deposit	17.25% lending
Tadawul	10,503	+0.3% (YTD: +0.2%)
ADX	9,456	0.0% (YTD: -7.4%)
DFM	3,401	+0.5% (YTD: +1.9%)
S&P 500	4,028	+1.4% (YTD: +4.9%)
FTSE 100	7,564	+1.1% (YTD: +1.5%)
Euro Stoxx 50	4,231	+1.5% (YTD: +11.5%)
Brent crude	USD 78.12	-0.7%
Natural gas (Nymex)	USD 1.99	-1.9%
Gold	USD 1,984.50	-0.3%
BTC	USD 28,397	+4.4% (YTD: +72.4%)

THE CLOSING BELL-

The EGX30 soared 3.2% at yesterday’s close on turnover of EGP 2.03 bn (2.5% below the 90-day average). Local investors were net buyers. The index is up 12.4% YTD.

In the green: EK Holding - EGP (+10.0%), Oriental Weavers (+8.4%) and Telecom Egypt (+7.4%).

In the red: Edita (-1.4%), Talaat Moustafa Group (-0.8%) and CIRA Education (-0.5%).

Biden to nominate Herro Mustafa Garg as US ambassador to Egypt

A new US ambassador in Cairo: US President Joe Biden intends to nominate former US ambassador to Bulgaria Herro Mustafa Garg as Washington’s new diplomatic chief in Egypt, the White House announced yesterday. Daniel Rubinstein has served as the embassy’s charge d’Affaires since August, succeeding former ambassador, Jonathan Cohen, who had been in Cairo since 2019.

Until this month, Mustafa Garg was serving as the US ambassador to Bulgaria, and had been in Sofia since 2019. She has also been the deputy chief of mission at the US Embassy in Lisbon, Portugal, and political minister counsel in New Delhi. Born in Iraq, Mustafa Garg is of Kurdish descent and speaks seven languages, among them Arabic, Kurdish, Farsi and Greek.

Pasta Regina’s Kareem Abou Ghali: ‘I was diagnosed with a photographic memory in the eighth grade’

Kareem Abou Ghali, co-owner of Regina Company for Pasta and Food Industries: 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 Kareem Abou Ghali (LinkedIn). Edited excerpts from our conversation:

I'm Kareem Abou Ghali and I am a businessman in the pasta industry. I represent the owning family of the Regina Food Group, which is co-owned by my brother Moustafa Abou Ghali and myself. I'm also a member of the Egyptian Businessmen’s Association, and the Chamber of Grain Industries, and a board member in the Committee of External Affairs and Exports. I'm also a very active member of the Food Export Council, as we're the largest exporter of food to Africa.

I received an international baccalaureate degree from the American International School in Egypt and graduated in the top 5% of my class. I was “diagnosed” with a photographic memory when I was in the eighth grade, which has been of great benefit in my life. It has helped me become fluent in seven languages. I speak Arabic, English, Spanish, Portuguese, and get by in Italian, French, German, and Greek.

My daily routine involves waking up at 7am and going to the gym, where I work out for 1.5 hours. I'm a firm believer that you can't have a strong mind without a strong body. Money means nothing if you don't have your health and a good body.

After working out, I follow up on all my entrepreneurial activities, usually between 10:30-11:30am. I'm a board member of more than 10 companies, including our family auto business, the Regina Food Group, and I also own a company called Kult Creative Productions.

I stay focused and organized by delegating tasks to my management team, who organize my agenda, then I stick to my schedule. I make quick decisions and don't dwell on small issues. I focus on strategy and problem-solving, and I don't like repetitive tasks. I enjoy taking risks and having the right team to handle day-to-day tasks.

The origin story behind Regina is quite a journey: When I returned to Egypt after university, my father's auto and hotel businesses were in trouble due to 9/11 and its impact on tourism. My brother and I embarked on what felt like a suicide mission and together we managed to save the family legacy and turn the business around. Today, we manage and own one of the largest private investment groups in the country.

The journey wasn't easy, and I had to work hard, be aggressive, and not take no for an answer. I faced a lot of pressure and experienced a dark place, but I didn't break. Now, I appreciate every second of success and make sure not to repeat the same mistakes.

We recently launched Golden Mills Pasta, which has been a 20-year dream of mine. I've had this drive and vision to produce high-quality pasta since I began my business career and joined the pasta industry. I'd always wondered why Egyptians couldn't produce pasta as good as the Italians, despite having excellent machinery, education, and resources. So, 20 years later, I'm finally able to produce the high-quality pasta I've always dreamed of.

We source a very high-quality, selective type of wheat called Canadian Western Amber Duram and extract only 40% of it, which is more expensive but produces the highest quality pasta. The remaining wheat is used for our other product, Regina, which is still of high quality. The feedback we've received from big Italian restaurants has been impeccable, placing our product in the top 10% worldwide.

Giving back to the community is a crucial aspect of both my personal and professional life. My office has a "Give-Back Team" that helps those in need. For me, making money and helping others are equally important. This is very important for business leaders, as it creates positive energy. Helping others has been my life's purpose, and it has also contributed to my success.

I do not believe in work-life balance, because I am free to be anywhere, anytime, and I love what I do. I don’t need to take time off from something that I love. I enjoy the stress and challenges associated with being a business owner and manufacturer. Work is like a game that I enjoy all the time, even when I’m on vacation. I believe I’m a professional gamer, and I play by the rules. Success in business is about playing smart within the rules.

The one constant in my day is ensuring the stability and progression of my business so that I don't go back to a dark place, giving back to others, and working on being a better version of myself.

I enjoy listening to David Goggins' podcast and Joe Rogan's interviews. I'm passionate about learning new things, and I usually pick a field that is interesting, such as psychology, and I dig deep into it. For aspiring entrepreneurs, I suggest reading Think and Grow Rich by Napoleon Hill and Nassim Nicholas Taleb’s The Black Swan. But I don't believe you need to read 90 books a day to be successful in business. I have attention deficit issues, so I prefer other activities such as watching football and staying informed about world events.

The best piece of advice I've received in my life was from my older brother, Moustafa, who helped me a lot,especially at my lowest points. One time when I was going through some personal financial troubles, I had this asset and I wanted to rent it out to a bank, but the bank president said no after a series of meetings. So I called my brother, and he told me “No means yes. No does not mean that it's over. It means that you keep going at it, and you can still get it done. Don't take no for an answer.” I rented the place to the bank in the end, and ever since, that has become a motto of mine. Don't give up, and be persistent.

CALENDAR

MARCH

March: 4Q2022 earnings season.

March: IMF to review USD 3 bn program.

March: Gov’t to launch the National Governance Index.

Beginning of March: Rice to be added to the EMX.

30 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

31 March (Friday): Finance Ministry to present draft budget to House of Representative by this date.

APRIL

April: GAFIto launch the country’s first integrated electronic platform to facilitate setting up a business.

April: SCZone roadshow in China.

April: SCZone to begin providing ship bunkering services in the Suez Canal’s ports.

1 April: President Abdel Fattah El Sisi's social support measures program to be implemented.

1 April (Saturday): Deadline for banks to establish sustainability units.

2 April (Sunday): House to reconvene.

6 April (Thursday): Al Ansari Financial Services shares to start trading in Dubai.

9 April (Sunday): Senate to reconvene.

10-16 April (Monday-Sunday): IMF / World Bank Spring Meetings, Marrakesh, Morocco.

11 April (Tuesday): Deadline for NGOs to legalize their status.

12 April (Wednesday): National Paints Holding’s and Eagle Chemicals’ MTOs for Pachin ends.

15 April: Lamees El Hadidi’s startup competition show, El Forsa, closes applications.

16 April (Sunday): Coptic Easter

17 April (Monday): Sham El Nessim.

21 April (Friday): Eid El Fitr (TBC).

25 April (Tuesday): Sinai Liberation Day.

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

30 April (Sunday): Tenth of Ramadan dry port tender deadline.

30 April (Sunday): Deadline for self-employed to register for e-invoicing.

30 April (Sunday): End of Mediterranean, Nile Delta oil + gas exploration tender.

Late April – 15 May: 1Q2023 earnings season.

MAY

1 May (Monday): Labor Day.

2-3 May (Tuesday-Wednesday): Federal Reserve interest rate meeting.

3 May (Wednesday): National Dialogue begins.

4 May (Thursday): National holiday in observance of Labor Day (TBC).

4 May (Thursday): IEF-IGU Ministerial Gas Forum, Cairo.

9-11 May (Tuesday-Thursday): First edition of the Arab Actuarial Conference, Cairo.

12-15 May (Friday-Monday): Egypt Fashion Week.

14 May (Sunday): Expat car import scheme ends.

15 May (Monday): Enterprise Exports & FDI Forum, Four Seasons Hotel Cairo at Nile Plaza.

16-18 May (Tuesday-Thursday): Egypt will host its first conferenceon cybersecurity and defense intelligence systems (CDIS-Egypt).

18 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

20-21 May (Saturday-Sunday): eGlob Expo, St. Regis Almasa Hotel, Cairo.

22-26 May (Monday-Friday): Egypt will host the African Development Bank (AfDB) annual meetings in Sharm El Sheikh.

JUNE

7-10 (Wednesday-Saturday): The second edition of Africa Health Excon.

10 June (Saturday): Thanaweya Amma examinations begin.

12 June - 15 July (Monday-Saturday): Thanaweya Amma exams.

13-14 June (Tuesday-Wednesday): Federal Reserve interest rate meeting.

15 June (Thursday): Deadline for bids in EGPC’s mature oil fields tender.

19-21 June (Monday-Wednesday): Egypt Infrastructure and Water Expo debuts at the Egypt International Exhibition Center.

22 June (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

30 June (Friday): Egypt to exit Grains Trade Convention.

JULY

18 July (Tuesday): Islamic New Year.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

25-26 July (Tuesday-Wednesday): Federal Reserve interest rate meeting.

27 July (Thursday): National holiday in observance of Revolution Day.

Late July-14 August: 2Q2023 earnings season.

AUGUST

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

3 August (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

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

SEPTEMBER

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

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

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

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

21-23 September (Thursday-Saturday): Narrative PR Summit, Somabay.

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

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

OCTOBER

6 October (Friday): Armed Forces Day.

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

Late October-14 November: 3Q2023 earnings season.

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

NOVEMBER

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

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

DECEMBER

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

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.

2023: Egypt will host the Asian Infrastructure Investment Bank’s Annual Meeting of the Board of Governors in 2023.

1Q 2023: Egypt + Qatar to launch joint business forum.

1Q 2023: FRA to introduce new rules for short selling.

1Q 2023: Internal trade database to launch.

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.

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

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

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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