S&P sees EGP losing half its value

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What We're Tracking Today

Big news from KSA

Good morning, wonderful people, and happy Sunday. We’re kicking off the week with a lot of econ news, between more devaluation speculations, Citibank cutting outlook on local USD bonds, and the CBE gearing up for its first meeting of the year. But before we dive into all that, we’ve got a very special announcement for you.

Today isn’t just any old Sunday, it's the launch day of EnterpriseAM KSA. Our newest addition to the Enterprise suite is written for decision makers in Saudi Arabia as well as executives, investors, and others doing business or deploying capital there. It will be published at 7am KSA, Sunday through Thursday. You can also check our newly launched EnterpriseAM UAE edition here.

WATCH THIS SPACE-

#1- Bond issuance on the HKEX?The Finance Ministry plans to list bonds on the Hong Kong Exchange (HKEX) after the two sides agreed to sign an agreement regarding the matter, according to a Finance Ministry readout. The two sides also agreed to sign an agreement to eliminate dual taxation between Egypt and Hong Kong later this year.

CORRECTION ON 28 JANUARY 2024: We have amended the story to clarify that the Finance Ministry wants to issue bonds dominated in the local currency of Hong Kong and not the EGP.

#2- It’s business as usual at the local gold market: Gold shops have not halted operations or shut their doors over the weekend after soaring demand pushed prices to record highs, the gold division at the Federation of Egyptian Chambers of Commerce said in a statement. Sales were only suspended for brief moments in some stores as people were processing the rapidly fluctuating buying and selling prices

Where prices are at: The price of 24 karat gold rose to an unprecedented EGP 4,400 per gram yesterday — up almost 17% from prices recorded during the last week of December. These prices are highly inflated and are “in no way representative of actual gold prices,” the division said in another statement seen by Enterprise.

Inflated prices everywhere: The Giza Chamber of Commerce’s electrical appliances division advised customers against purchasing any appliances at the moment, seeing as current prices are extremely inflated due to exchange rate instability, Al Mal reports.

#3- Red Sea disruptions hit our coffee supply: Several coffee suppliers have temporarily halted sales to supermarkets and retailers in efforts to preserve their stocks as Red Sea disruptions and the country’s FX crunch make it more difficult to import the usual quantities, according to Al Borsa.

Our friends at ALC Alieldean Weshahi & Partners have opened a joint-venture law office in Riyadh with leading Saudi firm Mithaq Law Office. The firm, known as Mithaq Law Firm in Association with ALC Alieldean Weshahi and Partners, will have a team of 20 multilingual professionals in Riyadh and plans to have a presence in other major business centers in the region, the firm said in a statement (pdf).

The Mithaq-ALC tie-up is a member of the Grimaldi Alliance, a global network with more than 500 lawyers in Italy, London, and New York, as well as 2k others in more than 70 jurisdictions.

The aim is to provide a one-stop shop for the needs of clients in Saudi Arabia and beyond, ALC Senior and Managing Partner Bahaa Alieldean told us in Riyadh last week at a reception for the launch. The gathering was attended by a who’s who of the Saudi business community, including senior executives and shareholders of major corporate groups and professional services firms. The event was hosted at Al Zarqaa Majlis.

Why a direct office now? “We have worked for more than a decade now with large Saudi conglomerates with units operating in industries including banking, real estate, infrastructure, and media, serving them on matters in Egypt and abroad,” said Alieldean. “Our goal is to serve the needs of the fast-growing Saudi market that sees both international investors flocking to the Kingdom and Saudi businesses committing more capital at home. The joint venture with Mithaq was a logical next step, giving us a direct presence in Riyadh and the ability together to serve clients by the joint venture’s pool of Saudi, Egyptian, and international lawyers.”

HAPPENING TODAY-

Egypt v Congo: The Pharaohs will face the DR Congo in Afcon’s round of 16 tonight at 10:00pm CLT. Egypt’s soccer officials sacrificed a cow and distributed the meat to the poor in Cairo in an attempt to bring the team better luck, team spokesman Mohamed Morad told Associated Press on Friday.

PSA- Brace for a windy week: We’re in for a chilly, windy couple of days, with all areas across the country expected to see declining temperatures until Wednesday, according to the Egyptian Meteorological Authority. Expect daytime highs ranging from 16-18℃ from today through Wednesday, and lows of 9-12℃.

HAPPENING THIS WEEK-

The Central Bank of Egypt’s Monetary Policy Committee will hold its first meeting of the year on Thursday to review rates. We’ll be out with our customary pre-MPC poll later this week.

It’s also Fed week: The Federal Reserve kicks off its two-day policy meeting on Tuesday. Economists are expecting the Fed to keep rates unchanged and wait until the summer before it cuts rates, according to a Reuters poll. Majority of economists polled see the Fed leaving rates at their current 22-year high at 5.25-5.5% when it meets later this week to ensure that “recent progress in inflation is sustainable.”

Setting the stage: The European Central Bank kept rates unchanged — at a record-high 4% — when it met on Thursday. The bank reaffirmed its position to keep rates high for a “sufficiently long duration” to bring inflation down to its target 2% from its current level of 2.9%.

CYBERSECURITY-

B.TECH denies data breach allegations: Consumer electronics retailer B.TECH “firmly denies all circulated allegations of a recent data breach,” the company said in a statement to Enterprise. The company reassured its customers that their data is secure and has not been compromised, following claims that its database has been hacked and thousands of customers' personal data has been leaked.

The allegation: A cybercriminal by the name Tanaka claims that B.TECH’s database has been breached and leaked on a hacking forum. The information leaked includes customers’ IDs, names, phone numbers, addresses, and emails.

Sound familiar?Last year saw reports alleging that two Egyptian blue chip companies were hacked by LockBit — the world’s most successful ransomware gang — compromising personal and financial data. The hacks suggest that LockBit has turned its sights on Egypt and other emerging markets — likely banking on companies here taking a less-sophisticated approach to cybersecurity.

One of those hits was on Fawry: We had a chat with Fawry CEO Ashraf Sabry, who explained to us the nitty gritty of what happened and the steps the company is taking to prevent this from happening again.

THE BIG STORY ABROAD-

Ongoing disruptions to shipping in the Red Sea continue to dominate global headlines this morning on what’s shaping up to be the first business day of a very busy week for news.

The conflict in the Red Sea and the shipping disruptions to which it is giving rise look set to drive volatility in natural gas prices this year, the International Energy Agency warned on Friday in its most recent quarterly report. Also impacting price volatility: The war in Ukraine and potential delay to the start of operations at a number of natural gas plants.

ONE THING TO READ that puts it all in context:The risks of relying on superpowers to protect global trade (the FT’s Big Read this morning)

** We have more on the story in the news well, below.

CIRCLE YOUR CALENDAR-

#1- Lula is coming to town: Brazilian President Luiz Inácio Lula da Silva is coming to Cairo on 15-16 February to meet with President Abdel Fattah El Sisi, the fellow Brics-member’s state-run news agency Agencia Brasil reported, without disclosing any details. Lula will then head off to the Ethiopian capital to attend an African Union assembly.

#2- Another financing agreement with the ITFC will be sealed in February: The International Islamic Trade Finance Corporation (ITFC) will ink its annual work program — worth a combined USD 1.5 bn — with Egypt next month, according to a Planning Ministry statement. The statement did not provide any details on which areas the fresh funds will support.

AND- Funds for a high speed electric railway line will also get the sign-off next monthfrom the Islamic Development Bank, according to Planning Minister Hala El Said.

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

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S&P expects Egypt’s EGP to trade close to the black market rate

S&P sees a devaluation in our future: S&P Global Ratings is expecting authorities to devalue the EGP to half its current value to unlock the remainder of the IMF package, the rating agency said in a report. Once the devaluation is through, S&P sees the EGP trading at “a level that is more in line with the parallel market rate, which is currently at about 60 USD / EGP.” The rating agency thinks that “more clarity on exchange rate policy would benefit trade and economic growth and trigger an increase in remittance inflows.”

Remember: The central bank has maintained the USD / EGP exchange rate at 30.9 since March, despite EGP continuing to fall against the greenback in the parallel market.

No shocker here: Everyone agrees that a devaluation is on the way and it’s just a question of when and how much. Last we heard, traders are optimistic that the devaluation will be smaller than expected after IMF officials indicated that a full float of the EGP may not be in the cards for the immediate future, saying that the Fund is prioritizing getting inflation under control over exchange-rate reform.

We should know more soon: Representatives from the IMF were in town last week to discuss the two long-awaited stalled reviews of the loan program. Although not much has been revealed about the visit, an IMF spokesperson promised updates when the visit wraps up.

It's not looking good for the country’s banks: “We expect Egyptian banks' foreign-currency liquidity positions will continue to deteriorate,” the report reads, pointing to the FX crunch. Net foreign assets in commercial banks was at a negative USD 15.8 bn in November.

DEBT WATCH-

Citibank cuts bullish outlook for Egyptian USD bonds: Citibank has downgraded its recommendation for Egypt’s USD bonds issued in October to “marketweight,” after giving the bonds an “ overweight” recommendation last year, Asharq Business reports. “In contrast to our previously optimistic outlook, we now believe the situation has changed with a significant increase in interest rates expected over the next few months, with few signs of positive catalysts so far,” Citibank strategists wrote in a note seen by the outlet.

SOUND SMART- A marketweight rating is given to fixed-income securities to indicate that their yields align with market expectations — the rating varies depending on if the yield spread is over, under, or in line with market expectations.

Egypt transfers ownership of government HQs to the Sovereign Fund of Egypt

Gov’t gears up to sell off or repurpose state-owned properties: President Abdel Fattah El Sisi issued a decree that will see the government transfer its ownership of a set of ministerial headquarters to the Sovereign Fund of Egypt (SFE), according to a decision published in the Official Gazette. The ministries listed under the decision will continue operating in their current buildings until they are moved to the new capital or another location, the decision read.

The buildings include several Cairo landmarks: The decision transfers the ownership of both the land and buildings of many Cairo landmarks, including the headquarters of the Foreign Ministry on the Nile Corniche. The list also includes the headquarters for the ministries of trade, tourism, transport, justice, education, housing, health, supply, social solidarity, military production, and the National Authority for Military Production, as well as units from the Local Development Ministry and the headquarters of the Green Trade Initiative.

The transfer comes as part of a larger plan to revamp Downtown Cairo: The SFE is close to finalizing its plan to revamp Downtown Cairo, with hopes to start working on the project over the coming months, SFE boss Ayman Soliman told Reuters. The SFE’s blueprint for the area is being drawn up alongside the European Bank for Reconstruction and Development and two other international advisers, and will be revealed in the coming weeks, he added.

Downtown could be set for some big changes: Soliman “did not rule out” reports that a skyscraper could be constructed on the former headquarters of the National Democratic Party next to the Egyptian Museum. The former Interior Ministry compound will be turned into a business park that will cater primarily to startups and tourism and is set to include a three-star Moxy hotel by Marriott, Soliman added.

ICYMI- An Emirati-led consortium had been awarded the bid to develop the former NDP headquarters, Soliman told El Hekaya’s Amr Adib earlier this month. However, the agreement had not yet been finalized at the time and Soliman provided no further details.

Houthis strike tanker carrying Russian fuel + Suez Canal revenues down 44%

Houthis hit Russian fuel tanker: Houthi fighters carried out a fresh round of attacks on vessels sailing through the Red Sea over the weekend, hitting a ship carrying Russian fuel operated by multinational commodities trader Trafigura. The attack set fire to one of the ship’s cargo tanks, the company said in a statement on Friday shortly after the attack. The company confirmed that the fire had been fully extinguished and that all crew members were safe and thanked Indian, US, and French naval vessels for assistance.

US strikes back: Hours after the attack on the fuel tanker, the US Navy launched an attack on what it said was a “Houthi anti-ship missile aimed into the Red Sea and which was prepared to launch,” US Centcom said in a statement on X. The US Navy spotted the missile and “determined it presented an imminent threat to merchant vessels and the US Navy ships in the region.”

There had been an understanding that Russian ships wouldn’t be attacked: Senior Houthi official Muhammed Al Bukhaiti had said that only American, British, and Israeli — or Israeli-linked — ships would be targeted and reassured other nations that “for all other countries, including Russia and China, their shipping in the region is not threatened” in a 19 January interview with Russian newspaper Izvestia.

Chinese firms have been betting on Houthi promises: A number of smaller Chinese shipping lines have been flocking to fill the vacuum of ships navigating the Red Sea route under their “perceived immunity” from Houthi missiles, wrote the Financial Times one day before the attack on the Trafigura-operated vessel. One of the opportunistic shipping companies emphasizes on its website that its ships prominently display the Chinese flag and sail though the Red Sea with Chinese navy escorts, the salmon-colored paper adds.

The US is pressing China to help bring pressure to bear on the Houthis, the Financial Times notes.Beijing, worried about how the disruptions could impact its own exports, is now reportedly pushing Tehran to tell its proxies that enough is enough. Don’t play ball? Business ties with China are at stake, diplomats have reportedly warned Iran, according to an exclusive from Reuters.

THE EGYPT ANGLE-

Suez Canal Authority (SCA) revenues will be “severely affected” this year if commercial vessels continue to divert their routes from the waterway, SCA boss Osama Rabie told Asharq Business. The Houthi attacks have increased costs and risks for maritime lines and pushed many companies to reroute around the Cape of Good Hope or even look to air freight and overland routes as alternatives.

By the numbers: Suez Canal receipts have fallen 44% y-o-y to USD 802 mn in January 2024, Rabie told the outlet. Egypt has lost about USD 150 mn in Suez Canal revenues due to ongoing Red Sea disruptions, according to estimates shared by Bloomberg’s chief emerging markets economist Ziad Daoud earlier in the month.

Deutsche Bank warns about what a full disruption to Suez Canal traffic would mean for our economy: Egypt could lose around USD 2 bn in revenues over a three-month period if disruption in the Red Sea leads to ins. premiums rising to “unsustainable levels” that it effectively stops Suez Canal traffic, the multinational lender warned in a research note seen by Enterprise. However, Deutsche Bank put the risk of a full closure of the channel as “unlikely” and instead predicted that “Egypt is likely to witness a partial — but not complete — loss in its revenue stream from the Suez Canal.”

But even if we avoid a shutdown, a prolonged conflict will worsen our FX crisis: “Cumulative pressures, in the event of a prolonged conflict, could further exacerbate Egypt's existing FX shortages,” the bank warns. With US President Biden acknowledging the minimal effect of recent strikes in Yemen and the Houthis’ commitment to target ships until a ceasefire is implemented in Gaza, there is a slim chance that the Houthis will change tactics anytime soon, the note adds.

Improvements in our currency account deficit are predicted to be undone: Our current account deficit is predicted to widen to 3.4% in the fiscal year 2023-2024, from the 1.2% recorded in the previous fiscal year, on the back of a reduction in tourism and energy exports, Deutsche Bank added.

But it’s not all doom and gloom from Deutsche Bank, which still believes that inflation will continue to its downward path throughout the year and that refugee flows and regional instability will increase the likelihood of expanded and additional support packages from multinational lenders and organizations.

Egypt’s Supply Ministry doesn’t want to hedge wheat contracts

Egypt has no plans to hedge wheat contracts: Falling wheat prices have made it unnecessary for the government to purchase hedging contracts for the commodity for the coming fiscal year, Supply Minister Ali El Moselhi told Asharq Business.

Makes sense: Hedging contracts are only beneficial when global prices of a commodity are expected to rise, as they lock in the price of future shipments of that commodity. The Oil Ministry last year purchased hedging contracts to protect it from soaring oil prices.

Hedging is still on the table: The government is considering purchasing hedging contracts to guard against expected volatility in the price of certain commodities following disruption in the Red Sea that has upended global supply chains, Assistant Supply Minister Ibrahim Ashmawy said earlier this month.

ALSO- Wheat leaves the EMX: The Supply Ministry has temporarily halted wheat trading on the Egyptian Mercantile Exchange (EMX), “due to crazed price speculations and bids by some traders,” El Moselhi said. The commodity will be back on the EMX once that issue is settled.

Where do our wheat reserves stand? The country’s strategic reserves of wheat currently stand at 4.2 months, the minister said yesterday.

Egypt-born AI startup DXwand secures USD 4 mn to step up AI research and regional expansion

Algebra Ventures, Shorooq Partners, and Dubai Future District Fund invest big in AI startup: Homegrown artificial intelligence startup DXwand has raised USD 4 mn in a Series A round led by local tech-focused VC firm Algebra Ventures, UAE-based VC firm Shorooq Partners, and the UAE government-backed Dubai Future District Fund, according to a statement (pdf) released on Thursday.

Where’s the money going? The company plans to use the fresh funds for regional expansion — though specific areas of expansion were not stated — and for its research and development in generative AI, and retrieval augmented generation (RAG). The company currently has offices in Cairo and Dubai, along with a HQ in Wyoming.

DXwand? DXwand is an Egyptian AI startup founded in 2018. DXwand has developed software to automate customer service conversations, using a language model that understands different slang in both Arabic and English. The platform extracts information from these conversations and presents it to businesses. The company’s software also specializes in knowledge mining — a form of AI that quickly learns vast amounts of information — and generative AI.

** We sat down with DXwand co-founder and CEO Ahmed Mahmoud for our Founder oftheWeek column back in 2022.

Another ceasefire agreement brewing + ICJ orders Israel to prevent genocide

A two-month ceasefire in Gaza? Hamas and Israel are on the verge of reaching an agreement which would see Israel halt all fighting in Gaza for about two months in exchange for Hamas releasing over 100 Israeli hostages, the New York Times reports. The US-led agreement is in its final stages, with expectations that it will be finalized within two weeks.

To move things forward: CIA head William Burns will reportedly meet with Egyptian intelligence chief Abbas Kamel, Israel’s Mossad head David Barnea, and Qatari Prime Minister Mohamed Bin Abdul Rahman Al Thani, in France in the coming few days, Reuters wrote. The talks will center on the agreement.

What’s next? If Burns’ meetings go well and make enough progress, the Biden administration will send Middle East coordinator Brett McGurk to the region to help finalize the agreement.

DIPLOMACY-

Biden jumps on the phone with El Sisi: US President Joe Biden and President Abdel Fattah El Sisi affirmed that “all efforts must now be made to conclude an agreement that would result in the release of all hostages together with a prolonged humanitarian pause in the fighting,” according to a US embassy readout. The two also renewed their commitment to reject the displacement of Palestinains and affirmed the importance of a two-state solution to ensure security and stability in the region, an Ittihadiya statement following the call said.

But El Sisi wasn’t picking up the phone for everybody: The Egyptian president reportedly refused to receive a phone call from Netenyahu.

UN’s Palestinian refugee organization loses funding: The US — the UN Relief and Works Agency’s (UNRWA) biggest donor — along with the UK, Italy, Canada, Finland, and Australia have suspended additional funding to UNRWA over Israeli allegations that several staff members took part in the 7 October attacks. The UN has preemptively fired several employees over the accusations and is investigating the allegations.

ICJ ORDERS ISRAEL TO PREVENT GENOCIDE-

The ICJ gives its verdict: The International Court of Justice (ICJ) has ordered Israel to limit harm to civilians in Gaza and prevent acts of genocide, but did not order an immediate ceasefire in a ruling (pdf) shared on Friday. The court also found that there is “plausible claim” of genocide that Israel must answer for.

Egypt welcomed the ruling and called “on Israel to immediately implement all the measures contained in the ICJ decision,” in a statement from the Foreign Ministry, but added that Egypt is “looking forward to the ICJ requesting an immediate ceasefire in Gaza, as the court has ruled in similar cases.”

ON THE GROUND-

Israeli forces killed 20 Palestinians in Gaza City who had been standing in line for humanitarian aid, the Gaza Health Ministry said on Thursday. Gaza is being made “completely uninhabitable,” as Israeli attacks on infrastructure and protected facilities like hospitals, coupled with increasingly cold weather, have put many more civilians at risk of dying, the UN Human Rights Office warned on Friday.

More than just numbers: At least 26,257 Palestinians have now been killed in Gaza since October 7 and most of the enclave’s 2.3 mn population have been displaced from their homes and have been pushed into ever-smaller areas in the south.

Egypt’s President Abdel Fattah El Sisi acknowledges high prices and economic headwinds

It was an econ-heavy on the airwaves with President Abdel Fattah El Sisi’s comments on prices leading the conversation.

“Life is expensive,” El Sisi said during comments made on the sidelines of Police Day ceremonies on Wednesday (watch, runtime: 17:01), adding that the people of Egypt are enduring and putting up with it. “We need to endure some more to live and grow and overcome this challenge,” he said. The president acknowledged the magnitude of the economic headwinds facing the country, telling journalists that geopolitical tension surrounding Egypt’s borders comes at a hefty price for our economy. El Sisi’s remarks also got airtime on Al Hayah Al Youm (watch, runtime: 4:48).

A solution on the horizon? The second round of the National Dialogue will address the country’s economic challenges and look to find solutions, he said.

Speaking of life being expensive: The nation’s talking heads took note of the repeated jumps in commodities prices — steel, poultry, and dairy products — due exchange rate volatility. Head of the metals chamber at the Federation of Egyptian Industries Mohamed Hanafi, joined Kelma Akhira’s Lamees El Hadidi to outline the drivers behind the increase in steel prices (watch, runtime: 7:45). Meanwhile, Poultry Producers Union head Tharwat El Zeini told El Hadidi that poultry feed prices climbed about 35% in a single week (watch, runtime: 5:33).

Markets are confused by the unstable exchange rate and there must be a method to end the black market trading of the greenback, head of the Internal Trade Committee of the Importers Division of the Federation of Chambers of Commerce Matta Bishay told Masa’a DMC (watch, runtime: 7:39). He pointed to the need for the government to be transparent with citizens and importers about its plan to address the issue.

Demand for Egyptian-made products soars amid current Gaza boycott

Local brands take the spotlight amid steadfast boycott in Egypt:Bloomberg is out with a piece delving into the impacts of the consumer boycott of Western goods and brands perceived to be aligned with Israel on local brands. Sales of a local Egyptian soda brand, left unnamed in the article, have reportedly tripled since Israel’s war on Gaza as consumers avoid brands that are seen as complicit in Israel’s occupation of Palestine or from countries that are supportive of Israel.

AND- Literary accolades: Ahmed Naji’s Rotten Evidence: Reading and Writing in an Egyptian Prison has been chosen as a finalist for the US’ National Book Critics Circle autobiography category. (Associated Press)

Savers pour EGP 471 bn into high-yield CDs. PLUS: Mining tender + subsea cable incoming.

BANKING-

Savers have put away some EGP 471 bn into the newly introduced high-yield certificates of deposit (CDs) from the National Bank of Egypt (NBE) and Banque Misr (BM), Youm 7 reports. Savers have poured some EGP 305 bn in CDs with NBE and EGP 166 bn with BM’s.

Remember: The NBE and Banque Misr introduced the record-high yield, 12-month CDs earlier this month, offering either a one-time return of 27% upon maturation or monthly payouts at a 23.5% annualized rate.

TELECOMS-

Egypt, Jordan to lay out subsea cable: Telecom Egypt inked an agreement with Jordanian telecom service provider NaiTel on Thursday to build a subsea cable — dubbed Coral Bridge — linking Sinai’s Taba to the Jordanian coastal city of Aqaba,according to statements from Telecom Egypt and the cabinet.

Vodafone’s shared services unit wants to scale up:Vodafone Intelligent Solutions (_VOIS) is planning to expand its operations in the country by 15% annually after teaming up with partners in the public and private sectors, according to a cabinet readout. VOIS currently employs over 9k people in Egypt.

MINING-

Mining tender in March? The government is gearing up to launch an international mining tender for three minerals in March, Asharq Business reported, citing an unnamed government official. The tender will cover an unspecified number of areas for mining mineral raw materials and for phosphate-, sulfur- and potash-bearing minerals.

Bond rally will help debt-ridden EMs borrow some more

Investor appetite for riskier debt is good news for EM borrowers: Investors are rushing to add bonds (risky or not) to their portfolio — wanting to cash in on the anticipated interest rate cuts — helping emerging markets gain greater access to global debt markets and giving them a helping hand to refinance their debt, writes the Financial Times. This move will help debt-ridden EMs borrow some more rather than default. “I do think there is a chance that some who have been excluded from markets will have access now,” said Morgan Stanley’s Simon Waever.

Egypt is among the lucky ones: Egypt, along with nine other developing nations, has seen its borrowing costs fall, leaving debt distress territory — a USD-borrowing cost that is 10% higher than that of US treasury. That gives the country the needed steam to tap debt markets and avoid defaulting, according to the salmon-colored paper.

Remember: Emerging markets sealed some USD 24.4 bn in sovereign and corporate debt sales in the first four days of the new year, making it the busiest-ever start to a year for EUR- and USD-denominated debt issuance in emerging markets.

ALSO WORTH NOTING- Musk seeks funding for OpenAI challenger xAI: Elon Musk is looking to raise USD 6 bn in equity capital for his AI startup xAI. Musk is targeting family offices in Hong Kong, sovereign wealth funds in the Middle East, and investors from Japan and South Korea to climb aboard his latest venture. (Financial Times)

EGX30	27,666	+0.3% (YTD: +11.1%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	19.25% deposit	20.25% lending
Tadawul	12,162	-0.1% (YTD: +1.6%)
ADX	9,568	-0.6% (YTD: -0.1%)
DFM	4,163	-0.2% (YTD: +2.6%)
S&P 500	4,891	-0.1% (YTD: +2.5%)
FTSE 100	7,635	+1.4% (YTD: -1.3%)
Euro Stoxx 50	4,635	+1.2% (YTD: +2.5%)
Brent crude	USD 83.6	+1.4%
Natural gas (Nymex)	USD 2.71	+5.5%
Gold	USD 2,036	0.0%
BTC	USD 42,134	+0.4% (YTD: -0.3%)

THE CLOSING BELL-

The EGX30 rose 0.3% at Wednesday's close on turnover of EGP 5.0 bn (55.6% above the 90-dayaverage). Regional investors were net buyers. The index is up 11.1% YTD.

In the green: TMG Holding (+8.4%), CIRA Education (+2.6%) and Credit Agricole Egypt (+1.9%).

In the red: Palm Hills Development (-2.4%), GB Corp (-1.9%) and CIB (-1.8%).

CALENDAR

2024

JANUARY

30 January (Tuesday): The IMF’s World Economic Outlook report due to be published.

FEBRUARY

1 February (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

1 February (Thursday): OPEC+ oil market monitoring online meeting.

4 February (Sunday): The Senate meeting.

8 February (Thursday): Deadline to apply to Shalateen Mining Company’s international gold exploration tender.

11 February (Sunday): Deadline to apply for the Chicago Booth Executive Programin El Gouna.

15-16 February (Thursday-Friday): Brazilian President Luiz Inácio Lulada Silva meets with President El Sisi in Cairo.

25 February 2024 (Sunday): Deadline to bid for 23 blocks in an international oil and gas tender.

MARCH

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

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

29 March (Friday): Egypt removed from JPMorgan Chase’s Emerging Local Markets Index Plus.

APRIL

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

15-21 April (Monday-Sunday): The IMF / World Bank Spring Meetings.

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

28-29 April (Sunday-Monday): Saudi Arabia hosts a World Economic Forum (WEF) meeting on ‘global collaboration, growth, and energy.’

MAY

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

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

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

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

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

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

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

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

23 July (Tuesday): Revolution Day (national holiday).

SEPTEMBER

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

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

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

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

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

DECEMBER

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

EVENTS WITH NO SET DATE

January 2024: The Red Sea Ports Authority is set to finalize an agreement with the Abu Dhabi Ports Group for the operation and maintenance of the tourist passenger terminal in the Sharm El Sheikh Sea Port.

February 2024: Egypt will sign a USD 1.5 bn financing agreement with the International Islamic Trade Finance Corporation (ITFC).

February 2024: Funds from the Islamic Development Bank for the high speed electric railway will get the sign off.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

February-May: The Grand Egyptian Museum could officially open to visitors.

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.

1H 2024: The European Union is set to hold an investment conference in Egypt during spring.

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

November 2024: Egypt to host the World Urban Forum (WUF12).

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

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

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

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