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Monday, 3 Jun 2024

What We're Tracking Today
Economy
Commodities
Capital Markets
Earnings Watch
Last Night’s Talk Shows
Egypt In The News
Also On Our Radar
Planet Finance
Blackboard
Calendar

Supply Ministry proposes sugar subsidy cuts next

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Today at a glance

1

Commodities

Gov’t mulls slashing sugar subsidies.
2

Economy

What does Egypt’s future look like in terms of inflation, growth, interest rates?
3

Capital markets

EFG Hermes tops the brokerage league table.
4

What We're Tracking Today

Central bank to hold USD t-bill auction today.
5

Also on our Radar

North Petroleum to boost production from Western Desert block.
6

Also on our Radar

Iraq looks at Egyptian contractors to revamp its hospitals.
7

What We're Tracking Today

Qalaa shareholders have until Wednesday to subscribe to its debt.
8

EARNINGS WATCH

Juhayna’s bottom line grew 41% y-o-y in 1Q.
9

PLANET FINANCE

Aramco secondary offering sells out within hours.
10

BLACKBOARD

Orcas Tutoring CEO Hossam Taher on the relationship between AI and physical classrooms.

Monday, 3 Jun 2024

What We're Tracking Today
Economy
Commodities
Capital Markets
Earnings Watch
Last Night’s Talk Shows
Egypt In The News
Also On Our Radar
Planet Finance
Blackboard
Calendar
1

What We're Tracking Today

Egypt’s MPs vote on the state budget today

Good morning, folks. We have a brisk issue for you this morning led by news of further subsidy cuts ahead.

HAPPENING TODAY-

#1- MPs to vote on the state budget: After being presented to the House more than a month ago by Finance Minister Mohamed Maait and Planning Minister Hala El Said, the house will hold its final discussion and vote on the proposed state budget and socioeconomic development plan for the next fiscal year. The legislative body will also vote on a EUR 200 mn loan agreement with Spain to import sleeper trains from Spanish rail manufacturer Talgo.

#2- CBE to hold USD t-bill auction: The Central Bank of Egypt will auction off USD 500 mn worth of one-year USD-denominated treasury bills with the submission deadline penciled in for 11am today.

Remember: The last time the central bank issued USD t-bills was at the end of April when it raised just shy of USD 1 bn with an average yield of 5.149%.

WATCH THIS SPACE-

PIF wants to acquire our cell towers: Saudi Public Investment Fund’s (PIF) telecom infrastructure subsidiary Tawal is reportedly looking to buy several telecom towers from Vodafone Egypt and another undisclosed telecom company, Al Borsa reports, citing unnamed sources. Vodafone is looking to sell about 5k of its 11k cell towers, while the unnamed company is looking to sell 2.5k towers.

AT THE BOURSE-

#1- Qalaa Holdings shareholders have until 5 June to subscribe to the first phase of the company’s debt buyback, Qalaa said in a disclosure (pdf) to the EGX.

Shareholders can subscribe pro-rata to the buyback in EGP as part of a series of transactions that will see Qalaa retire a USD 325 mn loan plus about USD 100 mn in accumulated interest that Qalaa had taken on. They’re effectively paying 20 cents on the USD to retire the outstanding portion of the debt plus accumulated interest.

We have the rundown on the series of transactionsin our interview with Qalaa Founder and Chairman Ahmed Heikal, who says the company will emerge on the other side with a stronger balance sheet better able to both pay dividends and invest in long-term growth.

#2- Abu Dhabi-based electrical equipment manufacturer Electra Investment Holding started accumulating shares of Elsewedy Electric yesterday and will continue buying through 9 July as it looks to take a stake of up to 24.5%, according to an EGX bulletin.

Recap: The Financial Regulatory Authority on Thursday greenlit the transaction, which will see Electra paying USD 1.05 per share. If Electra succeeds in getting the full 24.5% stake it’s after, the transaction would be valued at USD 558.4 mn, by our math.

ADVISORS- EFG Hermes is Electra’s sole financial advisor, we have previously reported. Elsewedy Electric appointed BDO Keys Financial Consulting to prepare the fair value study of the company ahead of the sale, the company said in an EGX disclosure (pdf). And MHR & Partners in association with White & Case is Electra’s legal advisor on the transaction.

DATA POINT-

Egyptians will spend some EGP 190 bn on pharma this year, up from EGP 155 bn last year, Al Arabiya Business reported, citing estimates from the head of the Federation of Egyptian Chambers of Commerce’s pharma division Ali Auf. Pharma sales were up 28% y-o-y in 5M 2024 to EGP 65 bn, according to Auf.

PSA-

WEATHER- The heat wave continues in Cairo today, with a high of 37°C and a low of 24°C, according to our favorite weather app.

It’s cooler in Alexandria, with a high of 30°C and a low of 22°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we spoke to Osama Hellal, plant director for Mars Egypt, a subsidiary of the global chocolate and candy giant Mars Wrigley. Check out the story here.

THE BIG STORY ABROAD-

It’s an unusually busy Monday morning, with a handful of stories fighting for a spot on the front pages.

Oil production cuts extended: OPEC+ agreed to extend production cuts until 2025 — cuts of 3.66 mn barrels a day will be extended until the end of 2025, while voluntary cuts of 2.2 mn barrels a day will run through the end of September.

Members will gradually phase out the 2.2 mn bpd in voluntary cuts over a year starting from October. “We are waiting for interest rates to come down and a better trajectory when it comes to economic growth … not pockets of growth here and there,” Saudi Energy Minister Prince Abdulaziz bin Salman said. Brent crude prices have been falling “amid a fragile economic outlook in top consumer China and doubts about the pace of interest-rate reductions in major industrialized economies,” Bloomberg writes. Brent crude has fallen some 11% since early April, to trade at USD 81.11 a barrel.

IPO WATCH- Fast-fashion retailer Shein will soon file a prospectus with the UK’s Financial Conduct Authority ahead of its anticipated London IPO, which could value the company at over USD 64 bn. This is Shein’s second attempt at going public after it tried to make its debut in New York but faced regulatory hurdles due to its ties to Beijing. (FT | Reuters)

ELECTION SEASON is in full swing: Mexico could welcome its first female president. Mexicans headed to the polls yesterday to cast their ballots in a historic presidential race, with two female candidates in the lead — leftist former head of government of Mexico City Claudia Sheinbaum and conservative Xochitl Gálvez. Results should be announced shortly. (Reuters | CNN | AP)

ALSO- South Africa’s African National Congress is scrambling to conclude coalition talks and has a few “very difficult” days ahead, one political analyst told Sky News. As we noted yesterday, the ANC lost its parliamentary majority for the first time since the fall of white rule. President Cyril Ramaphosa called yesterday for unity and said he would not step down despite the loss at the polls, Politico reports.

AND- The US presidential elections are fast approaching and a Reuters poll breaks down where each of the leading candidates — Joe Biden and Donald Trump — stand among voters in comparison to this time four years ago, when they went head- to-head for the first time.

All this election talk got you overwhelmed? We have everything you need to know about the upcoming elections this year in an Enterprise Explains published late last year.

IN LOGISTICS- The economic fallout of ships diverting away from the Red Sea to avoid Houthi attacks is still receiving coverage, with Bloomberg’s daily supply chains newsletter — Supply Lines — dedicating yesterday’s issue to the topic.

MOVES- Sally Buzbee is stepping down as executive editor of the Washington Post. Longtime readers of Enterprise will remember Buzbee as the Cairo-based Mideast editor of the Associated Press. “Matt Murray, the former editor in chief of The Wall Street Journal, will take her place through the presidential election,” the New York Times reports.

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

In today’s issue: Orcas Tutoring CEO Hossam Taher offered his thoughts on the relationship between AI and physical classrooms and we should all start getting more comfortable with the idea of virtual teachers.

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A week packed with joy. Experience the magic of Eid at Somabay: Celebrate the upcoming Eid El Adha holiday with us at Somabay from 14-22 June. Get ready for an exciting program packed with activities for families and kids, enchanting beach experiences, vibrant nightlife, revitalizing wellness offerings, and a delectable selection of culinary delights. Book your stay now, call 16390.

2

Economy

What does Egypt’s future look like in terms of inflation, growth, interest rates?

The Standard Chartered take on what’s next for the Egyptian economy: The lender’s MENA economist Carla Slim shared what the bank sees in Egypt’s future at a roundtable attended by Enterprise last week. Slim touched on private sector borrowing, inflation and growth predictions, and future mega investments.

ON INFLATION-

Could we be looking at another good month for inflation? The bank expects May’s inflation data to come in at 29.8%, marking its third consecutive dip. With inflation on a downward path, the bank sees the central bank easing monetary policy starting the third quarter of the year, specifically during its meeting scheduled for 5 September. “We expect the CBE to cut rates between 3-5% by the end of 2024,” Slim said.

Remember: Inflation cooled for a second consecutive month in April, falling to 32.5% on the back of slower food price increases as traders continued to price in a lower exchange rate than in the now-defunct parallel market.

The bigger picture: The bank sees inflation falling to around 25% by the end of the year and further cooling to around 20% in 2025, Slim added.

Standing in the way: The rise in food and energy prices as well as the increased liquidity in the market from the Ras El Hekma agreement could prevent inflation from falling as forecasted, Slim said. She added that in order for inflation to dip below the 30% and 20% levels, the central bank needs to absorb this excess liquidity in the market.

The central bank already got the memo: Last month, the central bank pulled a record EGP 1.1 tn in liquidity from local banks — its largest single withdrawal of surplus liquidity from the domestic banking system to date.

What’s next for the EGP / USD exchange rate? Standard Chartered sees the EGP strengthening against the greenback to hit 45 by the end of this year, Slim said. The bank sees the USD trading at EGP 48 next year and at EGP 50 in 2026.

GROWTH FORECASTS-

Egypt is looking at growth of 2-2.2% this quarter, Slim said, pointing to instability in the region and its impact on Suez Canal and tourism revenues. She also cited elevated interest rates and slashed government spending for dragging the country’s growth forecast down.

On the bright side: The economy should be on its path to recovery starting the following quarter, Slim added, explaining that full recovery — with growth rates of 4.5% — should take two years from now. That growth will be driven by some USD 45 bn in green investments rather than government investments.

THE PATH TO NORMALCY-

It will take the private sector two years to go back to borrowing at its normal rate, Slim said, adding that the local private sector will remain “under pressure” until then due to high interest rates. Despite forecasted rate cuts in the short term, rates will remain too high to encourage private sector borrowing.

Seeing another mega agreement of Ras El Hekma’s size will depend on how much excess liquidity Gulf nations have and are willing to deploy in Egypt, Slim said. “Saudi Arabia is the largest issuer of debt instruments among emerging markets this year so far, meanwhile Qatar is using its surplus liquidity to reduce its debt level and boost its FX reserves to improve its credit rating,” she said, explaining that Gulf nations don’t always have excess liquidity.

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3

Commodities

Sugar price hikes next?

Subsidized sugar price hikes next? Supply Minister Ali El Moselhy has proposed hiking the price of subsidized sugar to EGP 18 from EGP 12.6 per kilo, the minister said in statements to CNBC Arabia. The state currently spends more than EGP 23 in subsidies on every kilo of subsidized sugar, El Moselhy added. The proposal has not been approved yet by the government.

Where does the proposal currently stand? The proposal hasn’t been brought to the cabinet yet, cabinet spokesperson Mohamed El Homsani told Ala Masouleety’s Ahmed Moussa (watch, runtime: 2:20). “No decision has been made, but it may be under consideration,” he added.

It’s been a busy week for subsidy cuts: The Madbouly government hiked the price of subsidized bread 300% — the first time bread subsidies have been touched in over 30 years — this weekend, as the government shifts from in-kind to cash subsidies. Electricity hikes are expected in July and fuel price hikes will likely follow suit.

To hike or not to hike? “The government is yet to take any binding decisions on hiking electricity prices,” El Homsani added (watch, runtime: 17:50).

Supplies are steady: Egypt’s strategic reserves of sugar are sufficient until February 2025, Al Arabiya quotes the minister as saying.

Remember: Unsubsidized sugar prices saw a lot of volatility over the past period, with shortages pushing private shops and supermarkets to hike prices to over EGP 55 a kilogram.

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4

Capital markets

EFG Hermes tops the Egyptian Exchange brokerage league table in May

EFG Hermes’ brokerage arms topped the EGX brokerage league table in May with a market share of 19%, according to figures released by the exchange (pdf). CI Capital came in second with a 7.3% market share, followed by Thndr Securities (7.1%), Arqaam Securities (5.8%), and Mubasher Securities (4.7%). EFG Hermes has led the table for twelve consecutive months, after holding the top spot every month but one in 2023.

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5

EARNINGS WATCH

EGX-listed Juhayna’s bottomline grew 41% y-o-y in 1Q 2024

Price hikes drive Juhayna’s topline up: Dairy giant Juhayna saw its net income jump 41% y-o-y during 1Q 2024 to EGP 479 mn, according to its latest earnings release (pdf). Revenues saw a 68% y-o-y increase during the quarter to EGP 5.8 bn, driven by price increases totalling 40% over the course of 2023 and 20% in 1Q 2024.

Growth across various segments helped cushion investment losses of EGP 522 mn during the quarter. Dairy sales were the biggest contributor to the company’s topline, accounting for 44%. They were followed by fermented (28%), juice (15%), and concentrates (13%) sales. A 140% y-o-y jump in export sales also helped.

High demand for cheaper products: “Volatile economic landscape in Egypt and the unavailability of FX in the beginning of 2024, led to a consumer shift towards lower-priced products,” the company said, adding that it will be capitalizing on the trend with its diverse product range.

Looking ahead: “We are confident that the Egyptian market will continue to recover, and we are proud to have a strong brand and a longstanding relationship with the Egyptian consumer. We are looking forward to opening additional foreign markets and expanding Juhayna’s global footprint.”

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6

LAST NIGHT’S TALK SHOWS

Another night dominated by coverage of the bread price hike

The nation’s talking heads stayed fixated on subsidized bread price hikes, with Kelma Akhira’s Lamees El Hadidi virtually hosting Abdullah Ghorab, chief of the bakeries division of the General Federation of Chambers of Commerce (watch, runtime: 5:34) to hear his take.

Bakers want a bigger payout for producing subsidized bread: In line with the recent rise in the price of subsidized bread and the higher cost of energy and employee wages, the bakeries division submitted a proposal for the government to up the compensation paid out to bakeries producing subsidized bread.

ALSO ON THE AIRWAVES-

Less than fruitful three-way meeting on reopening the Rafah crossing: Egypt maintained its stance demanding Israeli forces give up control of the Palestinian side of the crossing before it agrees to reopen it, a high-level source told Al Qahera News following a three-way meeting between Egyptian, US, and Israeli officials in Cairo yesterday. “The Egyptian delegation reaffirmed Israel’s full responsibility for preventing relief and humanitarian aid from flowing into Gaza,” the source added. Egypt is pushing the UN and its affiliated organizations to take control of the Palestinian side of the crossing and oversee the entry of humanitarian aid into Gaza, political researcher Mahmoud Mohieldin told El Hadidi (watch, runtime: 5:16).

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7

EGYPT IN THE NEWS

Sudanese refugees are introducing their cuisine in Cairo restaurants

A taste of Sudan in Egypt: An Agence France Presse piece sheds the light on Sudanese refugees working to rebuild their lives and share their culture through culinary ventures in Egypt. The piece focused on Sudanese entrepreneurs Julie Samir and Qussay Biram who fled Khartoum last year in the wake of the war and are now running their restaurants in Cairo.

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8

Also on our Radar

North Petroleum to boost production from its Western Desert block

ENERGY-

#1- North Petroleum to boost production from its Western Desert block: NorthPetroleumInternational Company (NPIC), the Egyptian arm of China’s Zhen Hua Oil, will invest some USD 78 mn to increase production from its Western Desert’s East Ghazalat concession, Al Mal reported. The fresh funds are part of newly-approved amendments to the NPIC’s oil exploration agreement.

#2- Harbour Energy snaps concessions in the Nile Delta, Mediterranean: UK-based energy firm Harbour Energy has acquired Germany’s Wintershall Dea Egypt concessions in the Nile Delta and the Mediterranean, according to a statement. Harbour has been buying the German company’s assets in other countries as well.

INFRASTRUCTURE-

Iraq looks at Egyptian contractors to revamp its hospitals: The Iraqi Ministry of Health is holding discussions with Egyptian contractors to take part in revamping 12 hospitals with an estimated cost of USD 480 mn, Asharq Business reported, citing unnamed Egyptian sources. The Arab Contractors and Concrete Plus are among the potential candidates, one of the sources said.

Remember: Egyptian contracting firms are setting their sights on overseas projects as the government cut back on public spending, including a 15% reduction in funds allocated to public investments in the current fiscal year’s budget.

CAPITAL MARKETS-

A new era of accessibility for EFG Hermes ONE: EFG Holding’s online trading platform EFG Hermes ONE will introduce a new debit card top-up option on its platform, which is poised to enable customers to “leverage their debit cards for fluid securities trading, setting the stage for a new era of accessibility and efficiency,” according to a press release (pdf). This is the result of a strategic partnership between the platform, state-own lender Banque Misr, and EFG Holding’s subsidiary and e-payment solutions provider PayTabs.

INVESTMENT-

Alfa Trans to invest EGP 100 mn in Egypt this year: Local shipping agency service provider Alfa Trans wants to — together with its strategic partners — invest over EGP 100 mn in Egypt this year, the company’s chairman of the board Khaled Elawwa told Al Borsa.

INSURTECH-

Mal Bazaar acquires licensed ins. broker: Insurtech player Mal Bazaar has acquired an unnamed licensed ins. brokerage firm after receiving the greenlight from the Financial Regulatory Authority, the company said in a statement (pdf). The company recently launched its ins. management platform — dubbed My Policy — which allows its clients to digitize their operations. Mal Bazaar allows its corporate and individual clients to search, compare, and apply for ins. products in Egypt.

FINTECH-

QR code payment coming to Instapay? The central bank’s digital payment platform Instapay will “within days” roll out QR code payment services, Asharq Business reported. The service will allow users to transfer funds by scanning QR codes on their mobile devices. QR code payments — aka scan-to-pay services — will make their way to points of sale later this year.

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9

PLANET FINANCE

Aramco secondary offering sells out within hours

Aramco’s blockbuster secondary share sale was fully covered just “hours” after kicking off yesterday, Bloomberg reports, citing a document it saw. The oil giant’s offering met with sharp investor appetite and will see the transaction fully covered “within the price range,” Reuters reports, citing one of the banks working on the offering. Aramco had set a price range of SAR 26.70-29.00.

Remember: The oil giant is taking an additional 0.64% stake to market, or 1.5 bn ordinary shares, guiding on a price range of SAR 26.70-29.00 a piece, it said in a statement on Thursday. Institutional book-building continues until this Thursday, 6 June, according to a separate statement (pdf). The three-day subscription period for retail investors starts today and wraps this Wednesday for a minimum of 10 shares each with no upper limit.

What’s next: The final allocation of shares and the offering’s final price will both be announced on Friday, 7 June, and trading on the newly sold shares will begin next Sunday, 9 June. Excess subscription amounts will be returned on Tuesday, 11 June.

Advisors: SNB Capital is lead manager. HSBC, BofA, Citi, Goldman Sachs, JP Morgan, Morgan Stanley, Meryll Lynch, and SNB Capital will act as joint global coordinators, bookrunners and financial advisors. EFG Hermes KSA, Al Rajhi Capital, Riyad Capital, and Saudi Fransi Capital will act as domestic bookrunners. Meanwhile, M. Klein and Company and Moelis will act as independent financial advisors. Meryll Lynch will act as the stabilizing manager. White & Case will act as Aramco’s legal advisor. Pwc will act as auditor.

ALSO IN PLANET FINANCE- Nvidia to overtake Apple: US chipmaker Nvidia looks set to surpass Apple in market value, to become the world’s second-most valuable company behind fellow American tech giant Microsoft. Nvidia’s stock has tripled in value over the past year, and accounted for more than a third of the S&P 500’s gains in 2024. (Reuters)

MARKETS THIS MORNING-

Asian markets are solidly in the green in early trading this morning. Of the major benchmarks we follow, only the Shanghai Composite is flat. US and European stock futures were up slightly overnight as western markets look forward to the first trading day in June. (Anybody else wondering where the first five months of the year went?)

EGX30

26,870

-0.2% (YTD: +7.9%)

USD (CBE)

Buy 47.26

Sell 47.40

USD (CIB)

Buy 47.27

Sell 47.37

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,625

+1.1% (YTD: -2.9%)

ADX

8,863

+1.3% (YTD: -7.5%)

DFM

3,978

+0.2% (YTD: -2.0%)

S&P 500

5,278

+0.8% (YTD: +10.6%)

FTSE 100

8,275

+0.5% (YTD: +8.8%)

Euro Stoxx 50

4,984

0.0% (YTD: +10.2%)

Brent crude

USD 81.11

-0.9%

Natural gas (Nymex)

USD 2.59

+0.6%

Gold

USD 2,346

-0.9%

BTC

USD 67,798

+0.1% (YTD: +60.3%)

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 3.2 bn (34.6% below the 90-day average). Local investors were net buyers. The index is up 7.9% YTD.

In the green: AMOC (+5.7%), EFG Holding (+5.5%), and Heliopolis Housing (+5.0%).

In the red: Qalaa Holdings (-11.0%), Eastern Company (-5.8%), and GB Corp (-3.7%).

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Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard
10

BLACKBOARD

Physical classrooms form the bedrock of our society, but the advances of AI

mean that virtual teachers may one day be a feature of every households

mean that virtual teachers may one day be a feature of every households

Orcas Tutoring CEO Hossam Taher (LinkedIn) offered his thoughts on the relationship between AI and physical classrooms in BLJ Worldwide’s soon-to-be-released MENA Tech 2024: Mapping the Technology Landscape report, which we will be delving into once it’s released. Below is Taher’s contribution to the report:

Physical classrooms form the bedrock of our society, but the advances of AI mean that virtual teachers may one day be a feature of every households

As 2020 dawned and classrooms across the Middle East and North Africa began to shut their doors in response to Covid’s creeping scourge, parents and educational establishments across the region — and indeed the world — were all faced with the same unprecedented challenge: How do we ensure that our children’s education does not grind to a halt?

The answer, as we now know, lies in online and e-learning. In fact, the pandemic was the catalyst for an e-learning revolution — particularly in the Middle East — where parents were forced to cast aside any misconceptions about screen-based and home learning as it rapidly became the modus operandi for most schools and colleges.

As many of us will have experienced first hand, the pandemic caused extraordinary global disruption to schooling, affecting almost 1.6 bn students in more than 190 countries. Across MENA, it was responsible for the closure of learning facilities for almost 100 mn students aged between 5 and 17 years old.

It’s no surprise then, as e-learning passed the parent test, it also experienced a huge uptick in its fortunes: In 2022, two years into the pandemic, the online tutoring sector was valued at USD 7.7 bn — a figure which is expected to grow at a compound annual growth rate of almost 15% by 2030.

An e-learning revolution can only be built on strong digital foundations

There’s no doubt that this generation-defining shift to online learning is tech-driven, but it has also served to highlight just how much society relies on a robust and developed digital infrastructure.

Without easy access to affordable hardware, internet, wifi, 4 and 5G, students cannot take advantage of the myriad of options open to them. Governments are acknowledging that it is essential to provide the necessary technological foundations for Generation Z and Generation Alpha, who will all be educated, in some form and at some time, through a screen or device.

And while many will say that edtech is increasing access to education, this is not always the case as adoption rates across GCC countries — which are famed for their provision of cutting-edge connectivity — are far higher than in their North African counterparts. There’s still some way to go from providing equal access to education when it comes to lower income economies.

The transition from asynchronous to synchronous learning

Pre-pandemic online learning can be summarized as asynchronous — that is, self-based learning where individual students are watching videos, such as the ones you’ll see on platforms like YouTube. They certainly have a place, but there is no interaction and that’s where AI will be a future game changer. Videos will eventually become redundant and students will interact with their AI tutor through synchronous and live learning. We understand that not all children learn in the same way, which is why personalization is the future of this sector.

The role of AI

From my own experience as a founder of Orcas, which provides tailored e-learning and tutoring to students across Egypt, KSA, and the UAE, the shift in parental attitudes has been monumental — they now understand that this method of education is convenient and accessible and can offer tangible learning packages that offer clear engagement and measurable and trackable performance updates.

Quality of teaching is key, and for us a key metric of success is learning hours — an online platform might be great at attracting and acquiring users, but the real value happens on retention. We focus on hours spent learning and if students are increasing their hours and taking more subjects, we know they are actively engaged.

We provide a great user experience by utilizing the data we collect from different touch points between the student and the tutor to generate reports that are helpful for students and parents alike and that can also be used to adapt and evolve lessons to meet the individual needs of the pupil.

In the next two years, we plan to introduce more AI-powered experiences. There will be an intersection between 3D experiences, whether it's virtual or augmented reality that is paired with AI, but we must be realistic that devices that support this technology are still expensive and not affordable for many households.

We do know that we want to focus more on the teacher, so when we look at AI, we’re examining ways in which we can help the teacher understand each student better. Whether that’s through the creation of more adaptive and personalized lesson plans or even ways to help them understand the student’s mental or psychological state during each lesson.

Our ultimate vision is 100% personalized teaching — one day you may even see an Orcas box sitting in your living room, and with one click, a bespoke virtual teacher or tutor will appear. Given the amount of data we collect from the teacher in their online sessions and the way we pair it with curriculum data, we know this could be a potential and natural next step.

Traditional schools and e-learning can be a powerful combination

As someone who is committed to the provision of personalized online learning, I think it's important to recognize the unique and essential role that schools play in today’s society.

Quite simply — in a world where both parents often have jobs — a school’s physical presence allows mothers and fathers to work, pursue careers, and contribute to the economy around them. This is why they’ll always form the foundation of a successful civilization.

However, I also believe that personalized online and e-learning can support and complement a traditional education. If both sectors continue to work in partnership, putting the needs of pupils and students at the heart of everything they do, we can be confident of developing a robust educational model for generations to come.

Your top education story for the week: Filling the teacher gap: Prime Minister Moustafa Madbouly and Education Minister Reda Hegazi discussed the progress of initiatives to help Egypt fill its teacher shortages by hiring 30k school teachers annually over a period of five years. (Cabinet statement)

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CALENDAR

2024

JUNE

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

29-30 June (Saturday-Sunday): EU-Egypt Investment Conference.

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).

AUGUST

4-5 August (Monday-Tuesday): Egypt Expat Forum.

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

April 2024: President Abdel Fattah El Sisi will visit Turkey.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

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

1Q 2024: The government is set to finalize the sale of the Gabal El Zeit wind farm.

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

March 2024: The USD 2.7 bn MIDOR Refinery is set to begin full operations.

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

Mid-year: The fifth Japan-Arab Economic Forum.

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

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

3Q 2024: Egyptian-Armenian Joint Committee.

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.

End of 2024: Shalateen Mining Company to launch a gold exploration bid in the Eastern Desert.

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

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

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