Tax reform package to be finalized before the end of the month, says Madbouly

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What We're Tracking Today

Get ready to tell your Canadian friends to jump on a plane to Egypt

Good morning, folks. We’ve been incredibly busy over here at EnterpriseAM HQ this week with the annual EnterpriseAM Finance Forum that we held on Tuesday and making sure that we keep delivering you all the most important pieces of local business news freshly into your inbox everyday. But it seems we weren’t the only ones working overtime by the amount of announcements and updates over the last 24 hours.

In today’s packed issue, we’ve got news that new investment incentives courtesy of the government are in the pipeline, movement in the world of M&A, Egypt’s first SPAC coming sooner than you expected, and much, much more. Plus, for all of those that wished that they’d made it to this year's EnterpriseAM Finance Forum, we’ve unpicked our conversation with business leaders about what investors want to see from Egypt moving forward in the issue below.

WATCH THIS SPACE-

Canadians should soon be able to get visas on arrival once again: Egypt will soon waive the requirement that Canadian citizens apply for visas in advance, Foreign Minister Badr Abdelatty said at the sidelines of the UN General Assembly according to a statement from the Canadian government’s department responsible for foreign affairs.

Since October of last year, Canadians traveling to Egypt have no longer been able to obtain a visa on arrival and have instead had to apply for one via an embassy or consulate abroad before traveling. Instead of the USD 35 arrival visa previously, Canadians had to dish out USD 150 for a prior-arrival visa, undoubtedly turning away many tourists who had Egypt high on their list of countries to visit.

We never got official confirmation of what led to this, but word on the street was that Egyptian authorities weren’t happy with Canada’s increasingly strict visa rules for Egyptians and decided to respond in kind. Lending credibility to this theory was an email from the Egyptian embassy in Canada to Egyptian-Canadians that described difficulties experienced by Egyptians trying to get visas for Canada as “offensive in nature to the dignity of the Egyptian state.”

This is particularly good news for 300k Egyptians living in Canada — many of which no longer have Egyptian passports. With the unexpected things life throws at you, many Egyptian-Candians without a valid Egyptian passport would have sadly not been able to make it to funerals, weddings, and the like at such short notice.

HAPPENING TODAY-

Egyptian officials are taking the stage at the AIIB: The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting will wrap up today and several Egyptian officials will be taking the stage to participate in a number of sessions.

What to look out for: The Finance Minister’s advisor for capital markets operations Mae Adel will join Chief Risk Officer at AIIB Antoine Castel and a number of other panelists in a session titled Mobilizing Private Capital Through Capital Markets Innovative Instruments and another on Egypt’s Sustainable Building Blocks for Physical and Digital Roads. Former Finance Minister and AIIB International Advisory Panel member Ahmed Galal will participate in a session titled Maximizing Investment Returns: Strategies for Enhancing the Quality of Infrastructure Investments.

#2- It’s day two of Cityscape Egypt: The country’s largest real estate exhibition runs until Saturday at the Egypt International Exhibitions Center and is set to host 80 developers, showcase 1k projects, and welcome over 40k attendees. Register for the event here.

PSA-

Vodafone helps Egyptians get in contact with loved ones in Lebanon: Vodafone Egypt has announced that it will be offering free calls to and from Lebanon for three days beginning today so its customers can call to check on the safety of loved ones amid the deadly Israeli barrage on the country.

WEATHER- It’s another warm late-September day in Cairo today, with a high of 33°C and a low of 22°C, according to our favorite weather app.

It’s a few degrees cooler in Alexandria, with a high of 29°C and a low of 22°C.

And over the weekend, expect to see temperatures remain the same in the capital and likewise for our friends on the Mediterranean.

** 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.

CIRCLE YOUR CALENDAR-

#1- We're five days away from the Global DPI Summit 2024 — aka the Global Digital Public Infrastructure Summit. The three-day event kicks off on 1 October at the new capital’s St. Regis and “will spotlight the extraordinary progress countries are making in adopting and implementing DPI principles.” The summit will see the participation of CIT Minister Amr Talaat and UNDP Chief Digital Officer Rober Opp, among many others. The registration door has closed but you can browse the event’s agenda here.

#2- Attention, investors: The Arab Women Investors Union will hold the Arab African Investment and International Cooperation Summit in Aswan from 11-15 November. The event will help promote investment, trade, and partnerships between African, Arab, and Brics nations and host senior figures from the private and public sectors. Register for the event here.

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

THE BIG STORY ABROAD-

Business news is once again being pushed down the digital front page as the world’s press cover frantic diplomatic efforts to try to put together a ceasefire to stop “hell … breaking loose” — in the words of UN Secretary-General António Guterres. French and US authorities pushed for a temporary ceasefire between Israel and Hezbollah at the UN General Assembly yesterday, with French president Emmanuel Macron saying, “Israel cannot, without consequence, just expand its operations to Lebanon.” The two countries are apparently pushing for a 21-day ceasefire, according to two sources speaking to the Financial Times, with Biden expressing hopes that a truce might help pave the way to “dealing with the [occupied] West Bank” and Gaza.

Alongside hopes for a ceasefire are fears of an Israeli ground invasion into Lebanon after Israeli Chief of Staff Lieutenant General Herzi Halevi told Israeli troops that the country’s airstrikes on Lebanon were aimed not just at degrading Hezbollah’s capabilities, but “to prepare the ground for your possible entry.”

ELSEWHERE IN THE REGION- Libya’s two opposing governments have reportedly agreed on a new central bank leadership to be announced later today, sending Brent crude futures down 2.3% by the end of trading with the expectation of the country to soon up supply. The country’s oil output has fallen by more than half this month after a dispute between competing political factions over central bank-controlled oil revenues led to the removal of the bank’s governor and production strikes in protest.

AND IN BIG TECH NEWS- OpenAI’s CTO Mira Murati announced her departure yesterday — the third in a string of high-profile departures from the AI leader after John Schulman and Ilya Sutskever earlier this year. It was also revealed that OpenAI is in the midst of formulating a plan to restructure the core business into a for-profit corporation as the company seeks to remove the cap on investor returns.

PLUS- The FBI is investigating California-based VC fund Hone Capital on allegations of accessing information about the technology, finances, and clients of US-based startups for the benefit of their Beijing-based financiers or even even the Chinese state. The VC fund has invested in more than 360 tech startups in less than three years, including acquiring stakes in driverless car maker Cruise, payments group Stripe, and aerospace engineer Boom.

For the first time in Egypt, Somabay is thrilled to host the legendary Amy Winehouse Band live in concert. Prepare for an unforgettable evening filled with soul, jazz and iconic hits as the band performs live at Somabay’s breathtaking The Marina in The Theater Somabay on 5 October. Set against the stunning backdrop of the Red Sea, this exclusive event promises a magical night of music and entertainment in a unique setting. #TheAmyWineHouseBand #OneParadiseAllSeasons #SomabayRedSea

What international investors want to see from Egypt moving forward

The broad view on Egypt from the outside is one of cautious optimism. Structural reforms are in motion, FX restrictions are easing, and monetary tools have realigned to tackle inflation head-on, but international investors remain cautious about deploying capital here. What will it take to reignite investor confidence? As the government pushes forward with projects like Ras El Hekma and attempts to attract capital from key partners like Saudi Arabia and the UAE, the real question remains: Can Egypt execute where it counts and turn optimism into action?

We brought together a panel of international advisors and investors who are committing capital to Egypt or advising those who are looking to do business here during this year’s Enterprise Finance Forum. We spoke to Amr El Bahey, CEO of Mashreq Egypt, Essam Al Tamimi, founder and chairman of Al Tamimi & Company, Leila Serhan, senior vice president and group country manager for NALP at Visa, and Sherif El Kholy, partner and head of Middle East and Africa at Actis.

You can’t talk investments without bringing up Ras El Hekma: The landmark USD 35 bn agreement with ADQ that gave the Abu Dhabi wealth fund and longtime investor in Egypt the development rights to Ras El Hekma on the North Coast set the stage for the float of the EGP and opened the door for a whole lotta investments.

So where does the project to develop Ras El Hekma stand? “Ras El Hekma is a huge project for UAE. There are two ministers leading the project from the Emirati side and it’s progressing slowly, but it’s going to happen,” Al Tamimi said. We could be looking at six months to a year until we see significant progress on the project, but the project is moving forward despite facing challenges due to its complexity, Al Tamimi added. Al Tamimi explained that the key challenge lies in ensuring that the UAE has the freedom to fully operate and regulate the area.

Regulatory clarity is key: One area of concern raised by Al Tamimi is the lack of regulatory clarity. The current Investment Law leaves too much subject to the assessment of ministers and the cabinet, as opposed to clear and simple guidelines set in stone. “Investors want a clear, simple, and transparent process,” he said, adding that “there’s a few fixes you can do on isolated issues, but there aren’t regulations or laws that could basically clear things up and have investors enter the markets more smoothly and comfortably.” Al Tamimi explained that “there is serious intent to solve problems, but Egypt often gets tangled in the same issues over and over again.”

All about execution: “It’s all going to be about whether you can convert potential into tangible actionable opportunities that generate globally competitive, risk-adjusted returns,” El Kholy said, adding that “while there’s a macroeconomic stabilization afoot and a structural adjustment program is progressing,” much of Egypt’s investment potential will depend on execution. This is what will really inspire confidence, not just signing more MoUs, he said. “It’s all about execution, execution, execution,” El Bahey agreed.

The time is now: This combination of easing global macroeconomic pressures and domestic reforms creates a “runway for takeoff,” that could see Egypt lock in more investment, El Bahey said. “I think everyone realizes this is the perfect time for unleashing the potential of Egypt... People are cautiously optimistic and want to be even more optimistic.”

So, what are the signs of optimism? El Bahey pointed to growing production lines, increased capex investments, and increased interest from partners like the UAE and Saudi Arabia as indicators. “Another positive development is the focus on targeting inflation instead of just fixing the exchange rate,” he said, pointing to the easing of FX restrictions and the clearance of backlogs, which have all boosted confidence. Meanwhile, Serhan pointed to Egypt’s talent pool as a major reason for optimism.

Egypt is a long-term investment destination: While the general consensus of the panel leaned toward cautious optimism, Serhan said her view was “realistically optimistic.” “When you come to Egypt, you know you’re playing the long game — it’s not about the next quarter, it’s about the long term,” she said.

Why FDI flows have been slower than anticipated: Investors are adopting a “wait-and-see” approach, El Kholy said, adding that this explains why the expected surge in FDI after the float has yet to materialize. “Long-term investors with a five to ten-year horizon want to see policy clarity before making any decisions,” he explained. “We need to see real momentum on the privatization program and a more pro-private sector investment climate.”

There are signs of increasing appetite from industrial investors: “Long-term-minded investors are starting to prick up their ears and take a fresh look at opportunities here,” El Kholy noted, pointing to a recent visit by a large delegation from China. While this is promising, the panel agreed that large-scale investments will only follow when policy reforms are fully implemented.

Investors are waiting to see the next move: Investors are watching closely to see how Egypt handles its internal adjustments amid global shifts, like the start of the Fed’s rate-cutting cycle. The general sentiment is that if Egypt can improve its execution, it will be well-positioned to reap the benefits of a more favorable global environment.

The baseline scenario: The panel’s baseline scenario for Egypt focuses on maintaining stability through the ongoing structural adjustment program and progress on debt sustainability, which would gradually restore investor confidence. El Kholy noted that global conditions should offer emerging markets including Egypt some relief. El Bahey added that the country is already halfway there, with the government recognizing its challenges. Meanwhile, Serhan emphasized the importance of avoiding boom-bust cycles to maintain stability in the long term.

Looking ahead, we need to tap into Gen Z and look beyond the traditional sectors: Serhan highlighted the immense potential of Egypt’s Gen Z population and an expected growing middle class in driving long-term economic growth. Gen Z’s purchasing power is expected to double in the next five years, making them a key demographic for businesses to target. Serhan also emphasized the potential in Egypt’s creative industries, like film, music, and fashion, which can gain momentum without necessarily requiring FDI.

What are our panelists doing next? Mashreq is “very bullish on Egypt,” according to El Bahey. The bank is expanding across all segments with a focus on growing its retail business. Actis is cautiously participating in the privatization program, while Visa is increasing its workforce and investing in the country’s fintech and startup ecosystem.

Tax reform, new incentive packages, new labor council, and more from Madbouly’s post-cabinet meeting presser

Madbouly talks incentives, tax, reform, labor relations, education, mergers and more in his weekly presser that followed cabinet giving its approval to a number of decisions during its weekly meeting.

THE RUNDOWN-

#1- Tax reform package to be finalized in the coming days: Madbouly added he is working with Finance Minister Ahmed Kouchouk to finalize the tax reform announced earlier this month by the end of September, according to a separate statement.

#2- New incentive packages are in the works: Madbouly said — according to a another statement — he is coordinating with Investment and Trade Minister Hassan El Khatib over a new package that would encourage and incentivize both new and current investors to inject more investments into various sectors, without providing any further details.

#3- Ministries have nearly ironed out all the details of the new government’s action plan: The new Madbouly cabinet is in the process of finalizing its full and detailed work plan, with ministries putting their final touches on the plan before it is sent to the House.

ICYMI: Enterprise spoke with El Khatib during the 2024 EnterpriseAM Finance Forum this week, where he touched on his priorities going forward. You can read the full interview here.

#4- Introducing the Supreme Council for Social Dialogue in Labor: The cabinet approved a draft decision put forward by the Prime Minister to establish the Supreme Council for Social Dialogue in Labor — which will include 11 members representing employers’ organizations and 11 members representing workers’ organizations like trade unions. The body headed by Labor Minister Mohamed Gobran will be responsible for helping develop national policies, improve cooperation between employers and employees, and settling disputes before industrial action takes place.

Remember: The Supreme Council for Social Dialogue has been discussing the redrafted Labor Act since May ahead of passing it along to the House for discussion. The government pulled the bill from the House last year to redraft it after backlash from the business community, which said the original version was lopsided in favor of workers. Prior to the redraft, the bill would have introduced new labor rights, including legislating mandatory annual raises, caps on working hours, and longer maternity leave and notice periods, among other things.

#5- Maintaining voting powers at the EBRD: The cabinet approved a draft presidential decree that will see Egypt subscribe to 414 shares in the European Bank for Reconstruction and Development’s EUR 4 bn capital increase to ensure we maintain voting power.

#6- Two state-owned firms to merge: The Military Production Ministry received approval from the cabinet to merge two of its firms — Al Maasara for Engineering Industries and Helwan Diesel Engines — as part of a push from the ministry to establish larger economic entities that carry out the implementation of national projects and achieve better returns.

#7- The government’s progress on education targets was also on the docket: The prime minister noted the Education Ministry’s efforts to add classrooms and address teacher shortages, saying that early estimates suggest that most schools now have class sizes of less than 50 students per class as a result of the ministry’s work.

#8- And a brief update on the meds shortage: Madbouly added that the public could be assured that shortages of certain medications would be resolved in the coming weeks, while noting that pharma factories have increased their production of various medications.

Catalyst Partners Middle East gets FRA greenlight to launch Egypt’s first SPAC

Egypt’s first SPAC is nearly here: Impact investor Catalyst Partners will set up the country’s first SPAC, dubbed Catalyst Partners Middle East (CPME), after receiving the greenlight from the Financial Regulatory Authority (FRA), according to a statemen t. The SPAC will have a month to apply to list on the EGX as per FRA regulations.

A long time coming: The FRA greenlit a proposal to allow the establishment of blank-check firms back in 2021.

Hot on the heels of fresh SPAC rules: The approval comes a couple of months after the FRA updated its rules governing the listing and delisting of the acquisition vehicles on the Egyptian bourse. Under the regulations, SPACs must apply to list on the EGX within one month of obtaining their license from the FRA, or it will be considered invalid. They need a minimum issued and paid-up capital of EGP 10 mn which must be increased to EGP 100 mn within three months of listing on the EGX.

Regulation updates earlier this month opened the door for SPACs to hold temporary accounts for the purpose of conducting acquisitions.

What can we expect from CPME? The SPAC will reportedly target fintech firms and NBFS players, with plans to acquire three firms upon receiving the license, according to unconfirmed reports out in July when Catalyst Partners applied for the SPAC license.

What’s a SPAC again? A special purpose acquisition company is a type of shell company used by investors to acquire firms. SPACs raise money from the public in an IPO and then use the proceeds to merge with or acquire an appropriate company. Check out our explainer for more on how SPACs work.

Real estate player Tabarak Holding to IPO on the EGX by 2H 2025

Tabarak Holding to make long-awaited EGX debut in 2025: Tabarak Holding is planning to list 30% of its shares on the EGX by 2H 2025, chairman Ali Al Shorbany told Asharq Business.

This isn’t the first time the company has mulled an IPO: Tabarak previously announced that it would be making EGX debut by the end of 2022, with Al Shorbany saying at the time that the company planned to list 30-40% of the company’s shares in a bid to raise up to EGP 1 bn.

Tabarak has big plans ahead: The company is targeting sales of up to EGP 15 bn from its existing projects in Egypt in the coming year, Al Shorbany said, adding that 30-35% of the company’s sales in the Egyptian market have been made to clients outside of Egypt and paid for in FX.

A lot of these projects will be in around Cairo: The company is set to sign final agreements with the New Urban Communities Authority (NUCA) to launch its new, 800-acre project in New Sphinx next month, with Tabarak also in discussions with NUCA about the purchase of land in New Zayed.

But Tabarak has also got its eyes on some big ticket projects in Saudi Arabia: Tabarak is currently studying potential partnerships with the Saudi National Housing Company and Al Saedan Real Estate to develop projects including a 150k square meter commercial mall complex with around SAR 100 mn worth of investments, Al Shorbany told Asharq Business.

Palm Hills’ Yasseen Mansour snaps up more of Taaleem + Magrabi and Rivoli Vision to merge

PHD’s Yasseen Mansour ups his stake in Taaleem: Egyptian businessman and Palm Hills Developments’ (PHD) Chairman Yasseen Mansour has bought a additional 10.1% stake in higher education outfit Taaleem in an EGP 773.2 mn transaction, according to an EGX disclosure (pdf).

A closer look at the transaction: Mansour bought some 73.7 mn shares for EGP 10.49 a pop, pushing his stake from 18.3% to 28.4%.

Good bye MENA Long-Term Value: The EFG Hermes- and Wellcome Trust-managed MENA Long-Term Value fund exited its stake in the education company as part of the acquisition, selling all 7.252% stake for EGP 10.5 a share according to an EGX disclosure (pdf).

Mansour’s vision: The PHD chairman outlined his goals for Taaleem in the EGX disclosure, emphasizing his desire to see the company establish the largest number of private universities in Egypt, alongside finding high-tech solutions for administration and broadening the company’s social impact.

This is the second time Mansour increases his stake in the education outfit this month: The businessman upped his stake in the firm from 10.0% to 18.3% in a EGP 505.6 mn transaction last week, according to an EGX disclosure (pdf).

Remember: PHD and Taaleem earlier this month inaugurated Badya University — a joint venture between the two sides — in New October City. The university is part of Palm Hills’ larger EGP 100 bn Badya development in West Cairo.

PHD has big education plans, here and abroad: Mansour said earlier this month that PHD plans to set up 10 schools in the country within the next 10 years. It is also looking to develop up to 15 new schools in Saudi Arabia in partnership with Dallah Albaraka with combined investments of USD 300 mn.

MAGRABI, RIVOLI TO MERGE-

Egypt-born eyewear retailer Magrabi Retail Group is merging with Dubai-based lifestyle retailer Rivoli Group’s eyewear unit Rivoli vision in a transaction that will see them consolidate some 290 locations across seven Middle East countries by the end of the year, according to a statement (pdf). Completion of the transaction is still pending commercial and regulatory approvals.

About the companies: Magrabi — a regional player with over 200 branches across the region — operates a manufacturing facility in Dubai, with offices across Egypt, the UAE, and KSA, while Rivoli operates 89 branches across the UAE, Qatar, Oman, and Bahrain.

Timelines and targets: The merged entity expects to achieve double-digit revenue and EBITDA growth between 2025 and 2027, Magrabi Retail Group CEO Yasser Taher tells Arab News. Digital sales are projected to grow 50% annually during this period. The integration process is set to be completed within 15 months, while full synergy realization is expected within two years.

Egyptian VC EdVentures expands its investment portfolio

EdVentures adds eight new startups to its portfolio: Nahdet Misr’s venture capital arm EdVentures invested in eight new startups, expanding its investment portfolio to 22 companies, according to a statement (pdf). The selected startups are graduates of the VC’s recent business accelerator program.

The details: The startups offer “solutions designed to revolutionize traditional education through technology.” They are:

Elkheta: An educational platform that provides online tutoring and exercises aligned with the new Egyptian curriculum.
Saikoro: A platform that transforms traditional educational content to digital interactive games.
The Copywriter: The platform provides career guidance in creativity and writing to help youths develop professional skills.
Techy App: The app teaches STEM subjects through a blend of online and physical education.
SchoolZ: The platform provides a specialized transportation service for school and university students, as well as employees.
ArmStrong: An interactive online platform that offers STEM courses that blend school curricula with real-world application in Arabic and English
Tutoro: The online platform facilitates connections between students and teachers or private tutors.
InvestED: The platform connects companies with schools to help students with financial needs.

ALSO- EdVentures to manage innovation hubs: The CIT Ministry chose EdVentures to manage the digital innovation hubs across Egypt, starting with the Creativa Hub in Sohag.

Cemex inks agreement to take on its second waste-to-energy project. PLUS: Ezdehar, NeoPay, Cairo Metro

RENEWABLES-

Cemex inks agreement to operate Assuit WtE facility: Cemex through its Regenera arm will process over 7k tons of municipal solid waste monthly into alternative fuel and organic fertilizer — its second waste-to-energy (WtE) project in the country — under an agreement inked with Assuit Governorate, Al Mal reports, citing a company statement. No further details of the project were revealed.

Not Cemex’s first WtE rodeo: Cemex took steps to establish its first waste conversion facility in Gharbia Governorate back in May, with the company signing a partnership agreement to manage and operate a non-hazardous waste recycling and processing plant in El Mahalla El Kubra.

Remember: We heard in August that the government is set to sign contracts collectively worth up to USD 1.2 bn with eight local-foreign consortiums to produce a total of 1.7 bn Kw/h of electricity from municipal solid waste across a number of governorates, Waste Management Regulatory Authority consultant Khaled Elfarra recently told Enterprise.

INVESTMENT-

Look out for some big ticket investments coming our way from Ezdehar: Egypt-based private equity firm Ezdehar Management plans to invest USD 100 mn over the coming two years through acquisitions in the retail, industrial, and export-heavy sector, Managing Director Emad Barsoum told Asharq Business. The investments will come from its Ezdehar Egypt Mid-Cap Fund II, which counts the European Bank for Reconstruction and Development, International Financing Corporation and others among its contributors.

AND- Dalydress to head to the Gulf? Ezdehar-owned local clothing brand Dalydress has plans to extend to the Saudi market next year, ahead of further expansions to the rest of the GCC, Barsoum added. Ezdehar purchased above 80% stake in clothing company SETA Textiles — the company behind Dalydress and Premoda — early this year.

EXPANSION-

Could NeoPay expand to Egypt? New majority owners of payment services provider NeoPay, Bahrain-based asset management firm Arcapita Group Holdings and Turkish fintech firm Dgpays, want to expand its services outside the UAE and into other GCC countries, Egypt, and Pakistan, Arcapita’s Managing Director of MENA Investment Yousif Al Abdalla told Al Arabiya. The expansion could happen through M&As with firms operating in the market, forming JVs with local banks, or acquiring the necessary license to operate in the new markets, he added.

Remember: Arcapita and Dgpays acquired 65% of Mashreq Bank’s payment subsidiary NeoPay earlier this month.

TRANSPORT-

Another phase of Cairo Metro Line 3 incoming: The National Tunnels Authority inked an MoU with a consortium led by French construction company Vinci to prepare the preliminary design and technical study for phase 4C of the Cairo Metro Line 3, according to a Transport Ministry statement. The construction includes French construction companies Vinci and Bouygues Group as well as local construction companies Arab Contractors and Orascom Construction. The new phase will extend from Heliopolis to Cairo International Airport.

OECD revises 2024 global growth forecast to 3.2%, hinting stability

The global economy is inching closer towards stability, with the impact of aggressive rate hikes by central banks starting to fade, according to the Organisation for Economic Cooperation and Development (OECD)’s latest economic forecast (pdf). The Paris-based organization revised its global growth forecast for 2024 to 3.2%, up 0.1 percentage points. The projection for 2025 was kept at the same level.

What’s driving the change? A combination of cooling inflation, recovering trade flows, and easing labor market pressures is boosting the economy and allowing central banks to begin to ease monetary policy. If the decline in oil prices persists, headline inflation could fall a further 0.5 percentage points lower than expected next year, the OECD says.

The big picture: Global growth is expected to stabilize despite geopolitical tensions and sluggish labor markets. The OECD now expects the UK economy to expand by 1.1% in 2024, up from its previous estimate of 0.4%, and by 1.2% in 2025, up 0.2% percentage points from its previous estimate. Growth in the euro zone is expected to nearly double from 0.7% growth this year to 1.3% in 2025, as incomes outpace inflation.

Meanwhile, the US and China are up for more modest slowdowns, with interest rate cuts expected to help cushion the US economy’s slowdown to 1.8% next year from 2.6% in 2024, up from a previous 2025 estimate of 1.6%.

MARKETS THIS MORNING-

Asian markets are largely in the green, with China’s CSI 300 continuing a five-day streak of gains as investors cheer the economic stimulus package introduced by the government earlier this week. Japan’s Nikkei and South Korea’s Kospi are also both up 1.7%. Over on Wall Street, the Dow Jones broke its four-day streak of gains, with futures little changed this morning.

EGX30	31,251	+1.2% (YTD: +25.5%)
USD (CBE)	Buy 48.47	Sell 48.62
USD (CIB)	Buy 48.50	Sell 48.60
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,344	+0.6% (YTD: +3.1%)
ADX	9,516	+0.6% (YTD: -0.6%)
DFM	4,489	+0.6% (YTD: +10.6%)
S&P 500	5,722	-0.2% (YTD: +20.0%)
FTSE 100	8,269	-0.2% (YTD: +6.9%)
Euro Stoxx 50	4,917	-0.5% (YTD: +8.8%)
Brent crude	USD 73.46	-2.3%
Natural gas (Nymex)	USD 2.66	+0.7%
Gold	USD 2,681.10	+0.2%
BTC	USD 63,439.50	-1.2% (YTD: +50.2%)

THE CLOSING BELL-

The EGX30 rose 1.2% at yesterday’s close on turnover of EGP 4.7 bn (18.1% above the 90-day average). Regional investors were the sole net buyers. The index is up 25.5% YTD.

In the green: Elsewedy Electric (+8.6%), Emaar Misr (+6.2%), and GB Corp (+3.5%).

In the red: Alexandria Containers and Cargo Handling (-0.6%), Cleopatra Hospitals (-0.3%), and Eastern Company (-0.2%).

Ali Abdo, chief partnership officer at ESG&

Ali Abdo, Chief Partnership Officer at ESG&: 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. This week, we’re speaking with Ali Abdo (LinkedIn), chief partnership officer at ESG&.

My name is Ali Abdo. I am currently the chief partnership officer at ESG&, a company that specializes in providing technical solutions for sustainability. I’m also a bit of an adventurer with multiple Guinness World Records and I have a project called The Ride to 2030.

My day job revolves around expanding the impact of ESG& in the MEA region, be it through finding new partners or by creating new opportunities. Our main goal is to help different entities reduce their environmental impact and communicate their environmental record with more transparency and accuracy. A large part of my job is taking part in meetings, negotiations, and finding common ground with different partners across industries — we used to be focused primarily on the banking sector, but we’re moving towards the industrial sector as well.

Regulations covering environmental sustainability have caused more and more firms and organizations to begin reporting and measuring the environmental impact of their operations. However, many firms lack the manpower, the budget, and the time to do this effectively. We created a solution that helps these entities achieve that goal with the least costs and time. Our platform — dubbed Climate Edge — helps firms measure and reduce their carbon footprints and communicate their results.

There’s more awareness among businesses over the importance of sustainability and the importance of community impact as well. More entities are interested in sustainability and are working to contribute towards sustainable goals.

I’m the first Arab to set a world record on a motorcycle and the first Arab to set a world record on an electric vehicle. Ahead of the COP27 conference in Egypt, I organized a trip called “The Ride to COP 27” to help raise awareness for climate action and sustainability. During this trip, I visited all of Egypt’s governorates on my electric motorcycle, setting the world records for the longest ever trip on an electric motorcycle, and for the longest trip on an electric motorcycle inside one country. I then took part in COP27 to talk about some of the stories and challenges I accumulated during my trip.

Last year, I drove my motorcycle from Egypt to the UAE, setting the record for most cities visited by an electric motorcycle. We also got recognized as one of the most important initiatives in climate action.

This year, we’re going global — our journey will begin in Dubai and will pass through ten countries, Oman, Saudi Arabia, Qatar, Bahrain, Kuwait, Iraq, Turkey, Georgia, and finally Azerbaijan. We want to teach people about climate change, highlight success stories from communities we visit, and shed light on some of the challenges we still face — all while setting the Guiness record for most countries visited with an electric motorcycle.

The very first thing I do in the morning is I have my two cups of coffee. I wake up around 6am and check my newsletters for the latest trends, then I check my emails and prioritize the most urgent emails. The rest of the team signs in at around 9am and I start receiving phone calls and following up with a number of people around 10am. Because we work with people based in different time zones, meetings could happen a bit later than my usual working hours.

I have to be done with all the donkeywork by 12pm and get it out of the way while I have the energy at the beginning of the day. That’s my one constant every day, other than watching a show every night before going to sleep.

To stay focused, I have to write everything that goes on in general — in a meeting or otherwise. To be organized in a world as dynamic as this is really challenging, but you can try to be resilient. That’s how you can observe everything around you and keep track of everything. I use a number of different tools to keep things organized, but it’s mainly about being resilient for me.

My next goal is to help at least 1 mn people play a role in helping counter climate change. That’s both my personal and my professional goal. While I have a wide number of goals in general, this is my main one.

Work-life balance is something I find essential. Last year, I was doing my master’s degree, going on a trip, and I was in charge of 12 different projects for IBM — and I still managed to achieve highest honors. But I really appreciate work-life balance, and I don’t think we should live to work. My life and my family come before work, always. It’s something I constantly try to keep in check and make sure my work isn’t impacting the time I get to spend with my family. It’s part of the reason why I work remotely.

When I need to relax and switch off, I play video games. They help me reboot my brain after a hard day’s work so that I can start fresh the next time I have to do a heavy task. Call of Duty is my game of choice.

I highly recommend listening to El Da7ee7. I like to watch shows about history and science as well, but I haven’t been able to read as much since having children. I still read, but it’s mostly technical stuff.

The best piece of advice I’ve ever gotten came from one of my old managers. He said that I have to dedicate a part of my life solely for myself. “You can’t do everything for other people,” he said. And my personal piece of advice for people is that “we have to accept and we have to adapt.”

CALENDAR

2024

SEPTEMBER

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

25-28 September (Wednesday-Saturday): Cityscape Egypt, Egypt International Exhibition Center, Cairo.

28-29 September (Saturday-Sunday): Political Economy of the Global South Conference, AUC Tahrir, Oriental Hall, Cair.

29 September (Sunday): AmCham Egypt Real Estate Conference.

30 September (Monday): Ban on sugar exports expiration.

30 September (Monday): Portfolio Egypt 2024, Nile Ritz-Carlton, Cairo.

30 September (Monday): Egypt Business Forum, Paris.

OCTOBER

1 October (Tuesday): Egypt Business Forum, Marseille.

1-3 October (Tuesday-Thursday): Cairo Sustainable Energy Week, Cairo, Egypt.

5-8 October (Saturday- Tuesday): Techne Summit Alexandria, Biblioteca, Alexandria.

6 October (Sunday): Armed Forces Day.

7-11 October (Monday-Friday): Egyptian-Romanian Business Council Forum, Bucharest, Romania.

10-12 October (Thursday-Saturday): Egy Health Expo, Egypt International Exhibition Center, Cairo.

10-12 October (Thursday-Saturday): The FinExpo Conference and Exhibition, Cairo.

10-12 October (Thursday-Saturday): The EVs Electricity Egypt Expo and Conference.

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

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

20-22 October (Sunday-Tuesday): Mediterranean Offshore Conference (MOC), Alexandria, Egypt.

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

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

11-15 November (Monday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

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

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

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

EVENTS WITH NO SET DATE

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

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

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.

2025

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

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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