Suez Canal company IPO on the way

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WHAT WE’RE TRACKING TODAY

It’s interest rate day. PLUS: El Sisi is in Paris for a global finance summit

Good morning, wonderful people, and a very happy THURSDAY. With the Eid holiday taking up a chunk of next week and the week after, today marks the completion of our first full work week for a while. You wouldn’t know it from the news cycle, though, which is anything but slowing down.

CBE confirms Eid dates: Like the public sector, banks will be off from Tuesday, 27 June through Monday, 3 July in observance of Eid El Adha and the anniversary of the 30 June revolution, according to a Central Bank of Egypt (CBE) statement. We’re still waiting for confirmation from the Manpower Ministry and the EGX that the private sector and bourse will follow suit.

THE BIG STORY here at home: The government’s privatization program and economic reform agenda are once again dominating the news cycle. This morning brings news of an upcoming IPO for a Suez Canal company, plus fresh tax and investment reforms from the cabinet meant to boost the private sector’s role in the economy. We have the full rundown in today’s news well, below.

The Enterprise Finance Forum is our flagship gathering — the one so many of you have been waiting for. The two-day event takes place this September and will be the latest in our must-attend series of invitation-only, C-suite-level gatherings. Stay tuned for more information on the location.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations just after the 30 June holiday.

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STAY TUNED for more detail about our exciting agenda in the weeks to come.

HAPPENING TODAY-

It’s interest rate day: The Central Bank of Egypt is expected to leave interest rates unchanged when it holds its policy meeting. That’s according to our customary rate poll, where seven of nine analysts forecast a pause due to slowing global tightening and lower prospects of a near-term EGP deval. Separate polls from CNBC Arabia and Reuters concur.

We’re not the only ones focused on interest rates today:

The Bank of England looks likely to hike rates by as much as 50 bps — and potentially trigger a mortgage crisis — after UK inflation came in hot at 8.7% in May, higher than the expected 8.4%. (Financial Times)
Turkey will almost certainly raise rates from the first time in more than two years in its central bank’s first meeting since Wall street veteran Hafize Gaye Erkan took the reins as governor, signaling a shift back to orthodox economic policy for the country. (Bloomberg)

President Abdel Fattah El Sisi is in Paris to attend the New Global Financing Summit, according to an Ittihadiya statement. World leaders are convening at the summit today and tomorrow to discuss global economic headwinds and the impact on emerging economies, the statement reads. They will work to install a “more responsive, fairer and more inclusive international financial system to fight inequalities [and] finance the climate transition,” said Barbados’ Prime Minister Mia Mottley.

El Sisi x French transport giants: Ahead of the summit, El Sisi met yesterday in Paris with top executives from French rail manufacturer Alstom and shipping company CMA CGM to discuss their projects in Egypt, an Ittihadiya statement read.

The National Dialogue will hold sessions on the threats posed to society and families by domestic violence and “online dangers”, and ways to maximize the benefits of cultural institutions in the country.

THE BIG STORY ABROAD-

The search for the missing OceanGate submersible continues to dominate the global press: Rescuers are concentrating their efforts on a remote area of the North Atlantic where undersea noises have been detected, hoped to be from the missing vessel. (Associated Press | Reuters | New York Times | Bloomberg | WSJ | Washington Post)

Modi x Biden: Indian Prime Minister Narendra Modi is in Washington for talks with President Joe Biden centering on defense and technology cooperation. Earlier in the week Modi met with US executives including Elon Musk and on Friday he will address the country’s CEOs, as American companies plan new investments in India. (Reuters | Bloomberg| NYT| Washington Post| Wall Street Journal)

REMEMBER- Modi’s next stop is Cairo: The Indian leader will land in Egypt for a two-day visit this Saturday, 24 June, according to Indian media.

CIRCLE YOUR CALENDAR-

Smart Green Projects 2.0 application deadline pushed again: The application deadline for the second iteration of the Smart Green Projects initiative has once again been extended until the end of July. Eligible projects must use tech solutions to address environmental issues, present evidence of feasibility or innovation, and provide a written acknowledgement that no awards have been received during the first round of the initiative, among other requirements. Eligible projects can apply here.

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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That said, we’re looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

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Egypt to IPO Suez Canal company on the EGX

SCA to IPO Canal Mooring and Lights: The Suez Canal Authority’s (SCA) CanalCompany for Mooring and Lights (CCML) is set to sell a 20% stake in an IPO on the EGX, SCA boss Osama Rabie said at a presser yesterday, according to local media. The company will be transferred to the newly-established holding company that will obtain ownership of some of the authority’s assets earmarked for privatization.

REMEMBER- Earlier this month, the ministers approved the establishment of a new holding company to handle “managing and investing” the SCA’s assets. Two of its companies — CCML and the Port Said Company for Engineering Works and Marine Construction — are being transferred to the holding firm. CCML was among the 32 companies named on the government’s privatization list earlier this year.

Advisors: NI Capital is the advisor managing the valuation and the listing, a source at the SCA told us yesterday.

Why the holding company? In short, it allows CCML to go public. Regulations governing firms under the umbrella of the Public Enterprises Ministry prevent companies from going public unless they’ve been in the black for the past three years, according to our source. Handing ownership of CCML to the holding company frees it from having to comply with these regulations, they added.

What’s next: We can expect more information regarding the timeframe for the IPO after the company has been transferred to the holding company, according to our source.

This is the second Suez Canal IPO announcement this month: The board of the Suez Canal Economic Zone earlier this month agreed to sell a 20% stake in the Port Said Container and Cargo Handling Company on the EGX.

CCML won’t be the first newcomer to the EGX this year: Qalaa Holding’s energy distribution company Taqa Arabia is expected to make its debut on the exchange in July via a direct offering in what would be the EGX’s first share sale of the year.

This is the latest in a slew of privatization news: The government is making progress in negotiations for the sale of a number of assets including Telecom Egypt’s stake in Vodafone Egypt, one of the Siemens-built power plants, Egyptian Chemical Industries (Kima),

Ethydco, and a number of state-owned hotels, according to recent unconfirmed reports in the local press. In a boost to the program, the government this week recruited the International Finance Corporation to advise it on its privatization efforts.

Egyptian cabinet approves raft of measures to level the playing field, boost private-sector investment

Making good on reforms to draw investment: The Madbouly cabinet approved several draft bills and amendments aimed at making the business environment more attractive to private-sector investors in its weekly meeting yesterday, according to a cabinet statement. The moves include eliminating tax exemptions granted to some state entities in a bid to level the playing field between state and private entities, extending incentives granted to private projects, and streamlining dispute resolution in economic and district courts.

We knew this was coming: The measures approved by cabinet were among 22 moves to reform the business climate put forward by the Supreme Investment Council (SIC) in its first ever meeting back in May. The SIC was established to replace the investment council formed in 2016 as part of the state’s efforts to boost investment and stimulate economic growth.

#1- The end of preferential tax treatment for state entities: The Madbouly cabinet has approved a draft law eliminating tax exemptions for many state-owned entities in a bid to “improve the investment climate, support private-sector participation,” and promote fairness, competitiveness, and transparency in the economy, it said.

Some projects will remain tax exempt: The move to eliminate tax exemptions won’t apply to projects that fall under international agreements, projects that fall under defense and national security, and basic infrastructure projects, the statement reads.

#2- Expanding investment incentives: Cabinet also approved amendments that expand incentives laid out in the Investment Law. They include newly allowing projects that predate the 2017 law to benefit from its incentives. A wider variety of projects will also be able to apply for a fast-track license (a ‘golden’ license), and more projects will be eligible to establish themselves in freezones. Cabinet also approved amendments that add “special incentives aimed at attracting specific industries and directing them to specific regions within the country,” the statement read, without elaborating.

#3- Faster dispute resolution: Cabinet approved amendments to two laws meant to improve contract enforceability by expanding the jurisdiction of economic and district courts to resolve commercial disputes. Under the draft amendments, economic courts will be able to take on and settle final appeals for higher-value cases than is currently allowed, speeding up the dispute resolution process.

What’s next: All the measures still need to go through parliament before being ratified by President Abdel Fattah El Sisi.

PLUS- An Egypt-Brazil double taxation treaty on aviation: Cabinet also approved a draft decision to prevent double taxation on earnings generated from Egypt-Brazil air transport, the statement added.

Egypt’s president signs tax changes into law. PLUS: MPs approve oil exploration bills and more

Tax changes are now the law of the land: President Abdel Fattah El Sisi has signed into law the raft of tax changes recently passed by MPs aimed at raising state revenues and reducing the tax burden on low earners, according to a decision published in the Official Gazette on Tuesday.

ICYMI- The changes include a new higher rate of income tax, a higher personal income tax exemption threshold, several new development fees (including the ‘entertainment tax’) and a few tweaks to the incoming capital gains tax on EGX transactions. We have the full breakdown of the measures here and here.

YESTERDAY IN THE HOUSE-

MPs gave their final approval to several bills and decisions yesterday:

A USD 500 mn loan from the International Bank for Reconstruction and Developmentto expand the Takaful and Karama subsidy program;
A USD 310 mn loan from the Japan International Cooperation Agency for our universal healthcare scheme;
Four bills licensing the Oil Ministry to contract foreign firm Trident Petroleum to explore for oil in the Gulf of Suez in partnership with state-owned Egyptian General Petroleum Corporation (EGPC);
Three presidential decrees approving Egypt joining the International Atomic Energy Agency’s convention on nuclear energy safety; ratifying custom reductions under the African Continental Freetrade Area (AfCFTA); and hosting the headquarters of the African Space Agency in Egypt.

The House is now on its Eid break and will reconvene on Sunday, 9 July.

Devaluing the EGP “not the right way forward,” says Deutsche Bank

DB offers an alternative view on the EGP: Another devaluation is not “the right way forward” for Egypt and could make it harder to attract foreign investment into the country, Deutsche Bank analysts wrote in a research note on Monday. The IMF has been pushing the view that a fully flexible exchange rate is necessary to shore up the economy and strengthen foreign reserves, making it a central requirement of our USD 3 bn loan program. However, “a fourth devaluation is unlikely to resolve Egypt’s underlying challenges, and could even prove counterproductive in attracting a return of sustainable inflows to Egypt,” the analysts wrote.

The case against another devaluation:

#1- Devaluation would do little to encourage long-term investment: “The previous devaluations have failed to attract sustainable portfolio inflows beyond very short tenors,” and a fourth deval is unlikely to be any different, according to the note. Demand for government paper has been mixed and the inflows that we have seen have gone predominantly towards short-term t-bills, shortening the government’s debt profile.

This would have implications for debt sustainability: “Egypt risks having to finance long-term debt that becomes due with more short-term financing at increasingly higher rates,” the Deutsche analysts wrote. Around USD 52 bn in longer-term debt is due in 2023 and 2024, as well as USD 64 bn of bills that will likely be rolled over.

#2- The current account deficit doesn’t warrant another deval: The current account deficit has already been narrowing following the previous devaluations and generated a surplus for the first time since 2014 in 4Q 2022. Though the bank sees the deficit continuing through 2023, there is “limited room for further contraction” thanks to rising revenues from tourism and the Suez Canal and muted import demand, it said.

#3- The currency is already undervalued: Deutsche Bank estimates that the EGP is around 10% undervalued, according to the real effective exchange rate. And that’s despite three months of exchange-rate stability that has supported the currency after the January 2023 devaluation left it 20% undervalued.

The likelihood of another devaluation has shrunk in recent weeks: Investment banks have dropped their forecasts for an imminent devaluation and are now penciling in a move towards currency flexibility later in the year. The president has also poured cold water over the idea, saying last week that a further devaluation will not be allowed if it jeopardizes the country’s national security and inflicts more pain on citizens.

Remember: Transitioning to a fully flexible exchange rate was a key condition of the IMF program. The Fund was due to carry out the first review in mid-March but has postponed it amid a lack of progress in meeting several of its key commitments, namely the currency float and raising bns of USD via sales of state-owned assets. Deutsche Bank now expects the IMF to conclude its review of the program late in 3Q, potentially alongside another currency adjustment.

The alternative route? The “focus should shift to addressing the root of the problem, namely Egypt’s local debt stock,” according to the Deutsche analysts. While the lender wants Egypt to lengthen the maturities of its debt stock, it acknowledges that a maturity transformation is unlikely to be in the cards “given the IMF’s current priorities.”

Key forecasts:

The EGP will drop to EGP 37 against the greenback by the end of the year.
The mid-year forecast sees the currency trading at EGP 31 against the USD — a value that “is now close to being realized.”
The CBE will raise interest rates by another 300 bps.

Egyptian businessman Ahmed Abou Hashima to acquire 5% of Beltone

Abou Hashima takes a large stake in Beltone: Businessman Ahmed Abou Hashima will acquire a 5% stake in Beltone Financial after subscribing to the company’s ongoing capital increase, Asharq Business reported yesterday, citing two sources it says are familiar with the matter. “Abou Hashima bought the right to subscribe to the capital increase of Beltone, equivalent to 5% of the company’s shares, after the completion of the capital increase,” one of the sources reportedly said. A company representative declined to comment on the report when we reached out.

Beltone’s EGP 10 bn capital increase: The company is aiming to raise around EGP 10 bn by issuing new shares, making it the largest capital increase since Orange Egypt raised EGP 15 bn in March 2020, according to Asharq.

Subscription closes soon: The subscription period began on 6 June and investors have until 6 July to subscribe. The company’s 463.5 mn shares closed down 4.6% at EGP 4.35 per share yesterday, giving it a market cap of just over EGP 2 bn.

Chimera is Beltone’s majority shareholder: Abu Dhabi-based investment company Chimera Investments acquired 56% of Beltone in 2022 in a transaction that valued the company at EGP 690 mn.

Egyptian fashion e-commerce firms TFK and Opio announce merger

E-commerce players TFK + Opio are now one: Egyptian fashion e-commerce platform The Fashion Kingdom (TFK) has fully acquired Egyptian womenswear startup Opio, according to a joint statement (pdf) yesterday. Information about the value of the transaction wasn’t made public.

A share swap: This is a share swap transaction where both companies merge to create a new entity that will retain the TFK name, co-founder and CEO of Opio Shady Mokhtar told Enterprise yesterday. Mokhtar declined to disclose the details of the share swap or the ownership of the new company.

Scaling via acquisitions: The new entity, which the companies term “an all-in-one fashion aggregator and venture builder,” will focus on acquiring and developing online and offline fashion brands across the region, according to the statement. “The acquisition of Opio is a strategic move that complements and completes our ecosystem,” said TFK founder and CEO Fadi Antaki. “We are creating an all-in-one ecosystem that combines OPIO’s D2C

expertise with TFK’s marketplace infrastructure.”

The board: Antaki will be the CEO of the new company and Mokhtar will be the chief strategy officer, Mokhtar said, adding that the existing shareholders and management teams of both companies will remain part of the newly-created entity.

Three new brands in the pipeline: The company will soon expand its portfolio by launching a new brand dubbed Saltwater Circle next week and two more brands, FE and No Apologies, in 4Q, Mokhtar told us.

Advisors: TFK appointed White & Case as its legal advisor, Mokhtar told us without giving further details.

Egyptian Islamic fintech platform Agel closes pre-seed round

Agel closes seven-figure pre-seed round: Islamic fintech platform Agel raised seven figures USD in funding in a pre-seed investment round led by Plus Venture Capital, Seedstars International Ventures, and Flat6Labs, it said in a press release (pdf) yesterday. The round also saw participation from Seedra Ventures, Banque Misr, and a number of angel investors.

About Agel: Founded in 2021 by Abdelrahman Saeed (LinkedIn) and Ahmed El Sherbiny (LinkedIn), Agel brands itself as the country’s “first Islamic invoice financing platform,” offering sharia-compliant alternative financing options to MSMEs. The startup offers merchants financing as well as allowing them to sell on-credit and through the Agel application.

Where the money’s going: Agel will use the funds to “grow into a licensed non-banking financial institution,” develop its product, and expand into “major Egyptian cities.” With the newly-acquired funds, the company will also launch its “merchant co-branded banking card service” in collaboration with Abu Dhabi Islamic Bank.

What they said: “Our unique approach to finance for MSMEs has witnessed a significant increase in demand for our services,” El Sherbiny said in the statement. “As we deepen our product capabilities, we are confident in introducing several more easy and convenient payment options to satisfy our clients.”

PaySky’s Yalla Super App is heading to the Startup World Cup

Yalla Super App yallas to San Fran: E-payments firm PaySky’sYalla super app came in first place in the We Make Future startup competition in Italy and qualified for the Startup World Cup in San Francisco, the company said in a statement (pdf) last week. The company defeated hundreds of startups from around the world to become the first Egyptian, Arab, and African company to snag the title. The Startup World Cup will take place on 1 December, with USD 1 mn awarded to the top company.

IDH appoints new CFO, SIO

IDH welcomes new CFO: Consumer healthcare giant Integrated Diagnostics Holdings (IDH) has appointed Ahmed El Gebeily (LinkedIn) as its new chief financial officer, the company said in a statement (pdf) yesterday. El Gebeily, who will assume his new role on 15 August, currently serves as the CFO of the Egyptian Industrial Investment Group. His previous roles include senior executive finance director at Egyptian Steel, regional finance director at Lafarge Middle East and Africa, and finance director at Orascom Construction’s international cement division.

El Gebeily is taking over from Omar Bedewy (LinkedIn), who has served as IDH’s’ CFO and vice president of finance and strategies since 2016.

And a new SIO: Sherif El Etreby (LinkedIn) will join IDH as the company’s strategic investment officer (SIO) on 15 August. He too hails from the Egyptian Industrial Investment Group, where he currently works as the senior vice president of investments. He has previously served as Egyptian Steel’s planning executive director, regional controller for special projects at Lafarge Middle East and Africa, and head of budgeting and planning at Orascom Construction’s cement division.

Electricity prices, Suez Canal sale, central bank + shark studies on the Egyptian talk shows

Last night’s talk shows covered the confusion surrounding potential electricity price hikes, the Suez Canal company stake sale, and today’s interest rate decision at the central bank — plus a study into Red Sea shark behavior following a lethal attack.

The Madbouly cabinet has still not made a decision on new electricity prices, Electricity Minister Mohamed Shaker said in statements covered by Ramy Radwan on Masa’a DMC (watch, runtime: 1:56). The cabinet could decide to further extend the existing timeline to phase out subsidies on household electricity prices, Shaker said, warning people against believing rumors circulating about whether and by how much electricity prices could rise.

REMEMBER- Recommendations for the new electricity tariffs were sent to the cabinet for approval several weeks ago.

Suez Canal Authority (SCA) boss Osama Rabie was once again out to reassure the public that the canal is not up for lease amid news that one of its companies will go to an IPO on the EGX (more on that in the news well, above.) Speaking at a press conference yesterday to discuss the performance of the canal, Rabie confirmed that the SCA’s assets will remain under state control and the cabinet holds decision-making power over them. Ahmed Moussa’s Ala Mas’ouleety (watch, runtime: 3:27 | 3:20), Sherif Amer’s Hadith fi Misr (watch, runtime: 3:35), Ramy Radwan’s Masa’a DMC (watch, runtime: 5:30) and Lubna Assal’s Al Hayah Al Youm (watch, runtime: 2:39) all had coverage.

Don’t expect a rate hike today: Experts and analysts polled by the talking heads agreed with our customary poll that the central bank isn’t likely to hike interest rates when it meets today. Economist Mustafa Badra spoke with Sherif Amer (watch, runtime: 4:52) and economic analyst Ahmed Shawky joined Salet El Tahrir (watch, runtime: 8:40) to discuss today’s meeting.

Why are the sharks like this: The Environment Ministry has begun a three-stage study on the behavior of sharks in Egyptian waters, spending USD 15k to install 50 monitoring devices on Red Sea sharks, Environment Minister Yasmine Fouad told Hadith fi Misr (watch, runtime: 2:57). Fouad added that the program has started preparing to monitor sharks in Hurghada. The news comes weeks after a fatal shark attack in the area.

Suez Canal company IPO, Egyptian business climate reforms in the int’l press

Moves on the privatization front are getting play in the foreign press this morning. Reuters has coverage of the planned IPO of a Suez Canal company, as well as draft laws approved by cabinet aimed at leveling the playing field between private and state enterprises. We have more on both stories in the news well, above.

Also making headlines:

Price hump: Camel prices have more than doubled over the past year on the back of the devaluation of the EGP. (Wall Street Journal | watch, runtime: 00:40).
British broadcasting, EGP wages: BBC staff in Egypt reportedly went on strike yesterday after more than a year of negotiations over the broadcaster’s insistence on paying staff in EGP. (Washington Post).

Egyptian tobacco firm Eastern Company cancels heated tobacco plans to conserve FX. PLUS: EGX, FRA mull IR licensees + EgyptAir on biofuels + Paymob x Chefaa + Health Ministry says no to smoking + Madinet Masr’s new Sarai project

MANUFACTURING-

Eastern cancels investment in heated tobacco production on FX crunch: State-owned tobacco firm Eastern Company is abandoning plans to invest in heated tobacco production lines due to the shortage of foreign currency, CEO Hany Aman said in an interview with Asharq Business. The company is prioritizing using its FX to source tobacco to manufacture its cigarettes, he added.

CAPITAL MARKETS-

A license to IR? The EGX is in discussions with the Financial Regulatory Authority to introduce a license for investor relations managers in 2H 2023, EGX boss Ramy El Dokany said during a conference, according to Al Mal. The license would operate on a points system whereby IR professionals who violate the rules would get points deducted, El Dokany is quoted as saying.

ENERGY-

EgyptAir to increase biofuel use: EgyptAir plans to increase its biofuel use to 2% in 2025 and 6% by 2030, the company’s fuel and emissions director, Ahmed Mattar, told Asharq Business.

FINTECH-

Paymob x Chefaa: Fintech startup Paymob will provide its payment services to local pharma delivery platform Chefaa and its customers under an agreement signed between the two firms, according to a joint statement (pdf) out Tuesday. This includes issuing e-payment cards and providing POS payment and buy now pay later (BNPL) solutions to the platform’s users and pharmacies.

HEALTH-

No more smoking on Health Ministry property: The Health Ministry has issued a decreebanning smoking in all of the ministry’s facilities. Managers who fail to implement these rules will face fines between EGP 1-20k, while smokers will face an EGP 50-100 fine.

REAL ESTATE-

Madinet Masrannounces new project in Sarai: Real estate developer Madinet Masrlaunched Elan, its new project in Sarai, the company said in a press release (pdf) yesterday. The mixed-use development near the New Administrative Capital on the Cairo-Suez Road will include more than 2.8k residential units, as well as shopping areas, restaurants, an international school, a luxury hotel, a lake, and a commercial area. Its launch comes after the company (FKA Madinet Nasr) rebranded to reflect its plan to expand across the country.

Bahrain’s Investcorp eyes USD 600 mn IPO of investment vehicle on ADX

Investcorp eyes USD 600 mn Abu Dhabi listing of investment vehicle: MENA alternative asset manager Investcorp Holding could raise as much as USD 600 mn through a listing this year on the ADX of Investcorp Capital, a vehicle holding assets across credit, real estate and private equity, anonymous sources have told Reuters.Other options for listing venues and fundraising are still on the table, the sources added. Investcorp is working with Goldman Sachs, First Abu Dhabi Bank, Emirates NBD and HSBC on the plan with Moelis & Co acting as financial advisor.

Investcorp? The Bahrain-based firm has some USD 50 bn of assets under management and is 20% owned by Abu Dhabi state fund Mubadala.

ALSO WORTH NOTING:

Another Qatar x China LNG agreement: China National Petroleum Corporation and QatarEnergy inked a 27-year agreement under which Qatar will ship some 4 mn tons of LNG a year to China. This marks the second agreement of its kind in seven months. (Financial Times)
China’s central bank slashes rates: The People’s Bank of China cut two of its key lending rates yesterday following signs that the country may be approaching deflation. (CNBC)
Are you sure you want to unsubscribe? Amazon is being sued by the US Federal Trade Commission for enrolling customers into Amazon Prime without their consent and making the subscription difficult to cancel. (WSJ)

EGX30	17,706	-1.2% (YTD: +21.3%)
USD (CBE)	Buy 30.84	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	18.25% deposit	19.25% lending
Tadawul	11,466	+0.3% (YTD: +9.4%)
ADX	9,490	+0.3% (YTD: -7.0%)
DFM	3,782	+0.2% (YTD: +13.4%)
S&P 500	4,372	-0.4% (YTD: +14.1%)
FTSE 100	7,559	-0.1% (YTD: +1.4%)
Euro Stoxx 50	4,323	-0.5% (YTD: +14.0%)
Brent crude	USD 77.00	+1.5%
Natural gas (Nymex)	USD 2.60	+4.2%
Gold	USD 1,932.54	+0.0%
BTC	USD 29,914	+6.3% (YTD: +81.2%)

THE CLOSING BELL-

The EGX30 fell 1.2% at yesterday’s close on turnover of EGP 1.8 bn. Local investors were net buyers. The index is up 21.3% YTD.

In the green: Abu Dhabi Islamic Bank (+1.0%), GB Corp (+0.9%) and Elsewedy Electric (+0.5%).

In the red: Ibnsina Pharma (-4.0%), Credit Agricole (-3.3%) and Madinet Masr (-2.8%).

My Morning Routine: Ranya Saadawi, CEO, Acasia Group

Ranya Saadawi, CEO, Acasia Group: 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 Ranya Saadawi(LinkedIn), CEO at Acasia Group.

My name is Ranya Saadawi, CEO at Acasia Group. I’m Egyptian-American and grew up between New York and Cairo. I’ve been working in social entrepreneurship and impact investment for the past 15 years, with a focus on showing that we’re more similar than we are different. I think the best way to highlight how cultures, people, and geographies are similar is through economics and social businesses.

Acasia started in 2011 as a nonprofit organization. Following the revolution, it was a moment for a lot of Egyptians to see how they can contribute to the country’s economy through building the first ever angel investor network, getting individuals to invest in startups and SMEs in Egypt, help them grow, and create a community of like-minded people that want to not just provide funding for these startups but also provide mentorship and support to them.

We grew our team to 13 people across three countries, and we started implementing programs with the International Finance Corporation, the World Bank, and different private-sector companies. That included capacity-building training for women entrepreneurs across the MENA region and other programs specifically for Egyptian startups.

Acasia is very focused on tech-driven companiessuch as fintech and agtech on the venture side of our business. On the angel and partnerships end, we develop very specific programs for different sectors. That mainly means tech, but one other area that we’re looking at, for example, is architecture and design startups. There’s not a lot of investment in these areas.

The other big area of focus for us is female-led startups. Globally there are very few female founders or female-led startups that receive investment, so we focus on really building up female-led startups, regardless of what sector they’re in.

I dedicate the first one or two hours every morning to me. That includes a workout, breakfast, and coffee, which are key for me. Don’t talk to me before my ice latte [laughs]. I also read Enterprise and I love it. I worked at Expo 2020 before and for a local nonprofit organization here in the UAE, and we used Enterprise because we were investing in social startups and ecosystems globally but with a focus on the region.

We are a startup, so each day looks a bit different though we try to put some certain basics into place. You always have to make room for the unexpected. After our daily team huddle, the day goes very quickly. I do daily or weekly calls with team members. About 30% of my day is focused on legal aspects, banking, and cashflow. My responsibilities also entail looking ahead at what we need to do in terms of restructuring as we look to build over the next couple of years.

I believe switching off is really important and it’s a philosophy we have at Acasia. My calendar ends at a certain time of the day, and I don’t have any notifications on my phone outside of that time.

The one constant in my day is my iced coffee. No joke. Anyone who knows me knows that. Anywhere I go in the world, I know where to get my coffee.

My calendar is a big part of me. I use a lot of checks and balances and my calendar is a big part of it. I have a quarterly plan. It helps me stay focused and organized, as it’s really easy to get lost in the weeds of everything.

My focus is on how we become a true regional player with projects across the African continent. I’m really committed to Acasia for the long term. I’ve worked in international development for 15 years, predominantly on the nonprofit, government, and funder sides. But I’ve never had the chance to work for a private-sector company like Acasia that is basically an impact investment firm.

Work-life balance happens at different stages. I always say there are certain times of the year when work is going to take priority and other times when life should take priority. I am very big on balance because I have been in leadership positions before where I burnt out and I didn’t have a good work-life balance.

I love books. I read everything. Fiction, biographies, a lot of books from the Middle East diaspora. One of the books that had a huge influence on my life is Edward Said’s Orientalism.

Podcasts are something I’ve really gotten into over the past eight years. One network that I love from the region is Kerning Cultures. They started as a volunteer organization and then decided to get investment. They were the first I encountered to originate in MENA, telling very unique stories from across the region.

CALENDAR

JUNE

June: Suez Canal Economic Zone India roadshow.

June: Egyptian-Saudi business forum.

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

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

24 June (Saturday): Athar Climate Action Accelerator’s virtual demo day.

24-25 June (Saturday-Sunday): Indian Prime Minister Narandra Modi to visit Egypt.

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

30 June (Friday): June 30 Revolution Day.

30 June (Friday): Application deadline for the Smart Green Projects initiative.

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

30 June (Friday): Deadline for paying the first installment of the annual property tax.

JULY

1 July (Saturday): Private-sector minimum wage to rise.

1 July (Saturday): GAFI to launch the country’s first integrated electronic platform to facilitate setting up a business.

5 – 6 July (Monday – Tuesday): Gov’t to pay out subsidies to first wave of applicants under its sixth export subsidy program.

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

18 July (Tuesday): Islamic New Year.

18-19 July (Tuesday-Wednesday): Egypt Mining Forum, Nile Ritz-Carlton, Cairo.

19 – 20 July (Wednesday – Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

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.

2 – 3 August (Wednesday – Thursday): Gov’t to pay out subsidies to second wave of applicants under its sixth export subsidy program.

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

10 August (Thursday): Shalateen Mineral Resources gold mining tender closes.

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

SEPTEMBER

September: Sustainable Debt Coalition Initiative agreed at COP27 to launch.

September: IDH to open first branch in Saudi Arabia.

September: The Egypt-Germany trade and investment joint conference in Cairo.

September: JETRO’s second delegation arrives in Cairo.

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

10-12 September (Sunday-Tuesday): The International Agricultural Exhibition for Africa and the Middle East, Sahara.

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

15 September (Friday): Deadline for FX bureaus to comply with new capital requirements.

17-18 September (Sunday-Monday): Arab Security Conference and Exhibition, Nile Ritz Carlton.

17-19 September (Sunday-Tuesday): Sharm Rendezvous, Rixos Premium Seagate, Sharm ElSheikh.

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.

25 September (Monday): Nasdaq deadline for Swvl Holdings Corp to increase its market value of publicly held shares to a minimum of USD 15 mn.

25-26 September (Monday-Tuesday): Egypt to host the Asian Infrastructure Investment Bank’s annual board meeting, Sharm El Sheikh.

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

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

28-29 September (Thursday-Friday) Medical Tourism Conference, Sharm ElSheikh.

OCTOBER

October: Deadline for ins. providers to link their databases with the FRA.

2-4 October (Monday-Wednesday): Sharm Rendezvous – Ins. Market, Rixos Premium Seagate, Sharm ElSheikh.

2-5 October (Monday-Thursday): ADIPEC 2023, Abu Dhabi National Exhibition Center.

6 October (Friday): Armed Forces Day.

9-11 October (Monday-Wednesday): Arabs Savings and Financial Literacy Conference, Four Seasons Hotel.

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

Late October-14 November: 3Q2023 earnings season.

15-17 October (Sunday-Tuesday): Egypt Automotive Aftermarket Exhibition, Cairo International Convention Center.

26 October (Thursday): Daylight saving time ends.

29-31 October (Sunday-Tuesday): Egypt Energy, Egypt International Exhibition Center.

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

30-31 October (Monday-Tuesday): Intelligent Cities Exhibition and Conference, Dusit Thani LakeView, Cairo.

30-31 October (Monday-Tuesday): Global Business School Network (GBSN), American University of Cairo.

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

NOVEMBER

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

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

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

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

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

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

DECEMBER

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

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

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

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.

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.

3Q 2023: E-Finance to launch in Saudi Arabia.

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

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

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

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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