Non-bougie tourism spots you should visit in Egypt

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THE WEEK IN REVIEW

It was all about the FY 2023-2024 budget + lots of privatization updates

Good morning, friends, and happy FRIDAY. We hope you survived our first full workweek in ages, and that you have some fun plans coming up this weekend to take your mind off work.

May we suggest some of the spots in Cairo, Alexandria and beyond that you won’t usually find in any tour guide? We break down what those spots are — and the stories behind them — in today’s Enterprise Guide, below.

Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.

LAST WEEK IN 3 MINS-

It was a busy week on both the macro and privatization fronts last week, as the government unveiled its FY 2023-2024 budget and as it looks to accelerate progress on the state privatization program.

Some of the highlights include:

#1- The government now sees the budget deficit finishing the current fiscal year at 6.4%, up from 6.1% in FY 2021-2022. The budget document presented to the House of Representatives had forecast an “adjusted budget deficit” of 8.0% in FY 2022-23. Spending in FY 2023-2024 will increase 34% to EGP 2.99 tn on higher wages, borrowing costs, and subsidy allocations.

#2- The country’s debt-to-GDP ratio will rise to 96% by the end of FY 2022-2023, before falling to 91.3% in FY 2023-2024. New borrowing is set to increase by 22% in FY 2023-2024, with the government expecting to sell EGP 2.04 tn in new treasury bills and bonds.

#3- Some EGP 70 bn (USD 2.26 bn) are expected to come in through our privatization program next year.

ECONOMY-

#1- Inflation eased to 30.6% y-o-y in April from 32.7% the month before for the first time in 10 months in April thanks to a favorable base effect, the stabilization of the FX rate, and a slight slowdown in food price growth.

Expect it to pick up next month as the government hiked diesel prices by 14% raising it by EGP 1.00 to reach EGP 8.25 per liter. The decision comes as the government’s cost of purchasing diesel reached EGP 12.25 per liter due to higher prices in the global market and the EGP devaluation. Public transport fares grew by some 10% nationwide in response.

#2-Fitch Ratings downgraded Egypt’s sovereign credit rating for the first time since 2013, relegating the country’s rating to B from B+ and maintaining its negative outlook. The downgrade has been attributed to “high external financing requirements, constrained external financing conditions and the sensitivity of Egypt’s broader financing plan to investor sentiment,” the ratings agency said.

#3- JPMorgan + Moody’s delivered the latest warnings about the consequences of delaying reform: Moody’s signaled it could downgrade our credit rating for the second time this year if our external position continues to deteriorate, while JPMorgan agreed that delays on the state privatization program could weaken liquidity and noted that it puts into question the sustainability of Egypt’s debt.

On the bright side, JPMorgan said that Egypt should be able to seal a staff-level agreement with the IMF next month, putting us on course to getting board approval and the next loan tranche by the third quarter.

PRIVATIZATION WATCH-

#1-The Sovereign Fund of Egypt acquired a 49% stake in pharma chain El Ezaby Pharmacy, enabling the company to almost double its branch count to 600. The SFE’s healthcare sub-fund and private equity firm B Investments are also setting up a pharma logistics and distribution firm in partnership with El Ezaby to offer logistics and administrative support and trade and distribution services to local pharma companies.

#2- Abu Dhabi wealth fund ADQ is reportedly close to acquiring a 20-25% stake in Egyptian Linear Alkyl Benzene (Elab) in a transaction that is expected to be completed by the end of this month.

#3- Progress on the TE stake sale? The government’s plans to sell a minority stake in Telecom Egypt (TE) to investors look to be back on the table, with reports saying that it could begin the process of selling a 10% stake in the state-owned telecom giant this week.

Selling at a discount: The government will be selling shares at EGP 22.25 apiece, a 3.8% discount from TE’s current share price of EGP 23.14. The transaction would be worth around EGP 3.8 bn (c. USD 122.8 mn) at that price.

#4- Wind farms attract investor interest: Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy and our friends at local renewables firm Infinity are reportedly among seven companies interested in acquiring Egypt’s two largest wind farms. The government-owned 580-MW Gabal El Zeit and 545-MW Zafarana wind farms were both included in the list of 32 companies and assets earmarked for privatization in February and have attracted significant interest among investors, with the sales reportedly expected to be completed before the end of 2023.

WHAT’S HAPPENING NEXT WEEK-

Next week is interest rate week: Figures released last week indicating inflation is cooling might give the central bank the chance to keep rates on hold at its next meeting on Thursday, 18 May, EFG Hermes Research’s head of macroeconomic analysis, Mohamed Abu Basha, wrote this week. CI Capital, on the other hand, is penciling in 100-bps worth of hikes across the committee’s next two meetings. The CBE has raised interest rates by 1000 bps over the past year after delivering a jumbo 200-bps rate hike in March. CBE Governor Hassan Abdalla last month expressed doubts on the effectiveness of monetary policy to curb inflation, and said that policymakers need to be “very careful” about tightening policy further.

** Keep an eye out for our customary interest rate poll on Sunday ahead of the central bank meeting.

The National Dialogue meetings kick off this coming Sunday, after President Abdel Fattah El Sisi recently inaugurated the opening session of the National Dialogue after a year of preparations. The dialogue will hold three meetings a week for an unspecified duration to discuss more than 100 political, economic, and social issues. Some 800 individuals have been invited to participate. All sessions will be broadcast to the public.

We can also expect to see some more movement on the state’s privatization program. Military-owned bottled drinks firm Safi and fuel retailer Wataniya will start receiving offers from strategic investors this month, and government officials are confident we’ll see stake sales between now and the end of June, sources with first-hand knowledge of the process tell us.

PSA- The expat car import initiative will draw to a close on 14 May.

And, of course, our very own Enterprise Exports & FDI Forum will be taking place at the Four Seasons Hotel Cairo at Nile Plaza on Monday, 15 May. The event will see CEOs, top execs, bankers, and development finance folks attempt to solve the biggest economic issue of our time: How do we get out of our FX crunch.

Who’s speaking?Hossam Abou Moussa, partner at Apis, Hassan Massoud, associate director and head of private equity (Southern Mediterranean) at the EBRD, Tarek Kamel, CEO of Nestle Egypt; Omar Elsahy, general manager of Amazon Egypt; Khaled Morsy, CEO of DB Schenker; Shady William, managing director of IDG; Mohamed Talaat Khalifa, CEO of Concrete; Mark Wyllie, CEO of Beyti; Kareem Abou Ghaly, chairman and CEO of Pasta Regina; Yasmine Khamis, chair of The Orientals Group, Cheick-Oumar Sylla, director for North Africa and Horn of Africa at IFC; Hossam Sallab, CEO and vice-chairman of Sallab Group and Royal Ceramica; Tarek Hosny, head of investments and projects at Fertiglobe; Helmy Ghazi, deputy CEO of HSBC Egypt; Shams Eweis, corporate affairs director, Egypt, North Africa and Levant at Mars; Nada El Ahwal, CSO of Transmar; Nadia El-Tawil, investment officer at AfricInvest, Mostafa Bedeir, CEO of Giza Seeds and Herbs, Abdallah Sallam, CEO at Madinet Masr, Yassir Zouaoui, partner at McKinsey; and Mohamed ElGebely, team leader at USAID Trade.

Topics and live interviews will include:

How to attract foreign partners and figure out what they are looking for;
What lessons can we draw from white goods, fertilizers, and garments exporters who have increased our exports;
What are the fundamentals to creating an export and / or FDI strategy;
What it takes to secure a place in a multinational’s supply chain.
How industrial clusters could expedite exports, FDI and possibly be an avenue for SME development;
How Egypt’s industries need to be open to evolution to become more competitive.

Tap or click here to explore the full agenda.

Stay tuned for our coverage from the event in EnterpriseAM, EnterprisePM and Enterprise Logistics.

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

YOUR MOST CLICKED LINKS-

The FY 2023-2024 budget got by far the most attention, with various documents and statements provided by the Planning Ministry getting the most number of clicks. (Enterprise)
Also getting a lot of attention: News that our current account turned to a surplus for the first time in years. (Statement, pdf)
We are also happy to report that our Exports & FDI Forum got a lot of interest. (Website)
Moody’s warning that it could downgrade Egypt’s credit rating for the second time. (Statement, pdf)
The Higher Education Ministry’s new electronic portal for students to receive equivalency certificates got a lot of attention courtesy of our Blackboard coverage. (Portal)

AROUND THE WORLD IN SEVEN DAYS-

The US made headlines — in more ways than one:Talks around the debt ceiling in Washington reached an impasse, with senior lawmakers refusing to compromise and come to an agreement to avert a debt default in three weeks time.

Meanwhile, former US president Donald Trump was also everywhere on the global front pages, after a New York jury found him guilty of [REDACTED] abuse and defaming writer E. Jean Carroll and ordered him to USD 5 mn in damages.

In our neck of the woods: Arab foreign ministers voted to bring Syria back into the Arab League 12 years after it was kicked out for its crackdown on Arab Spring protesters following a meeting in Cairo. Damascus is now allowed to attend meetings and it has been suggested that the country’s president, Bashar Al Assad, could chair the next gathering on 19 May.

Over in Sudan,hopes are high that negotiations between the Sudanese army and the rival paramilitary group the Rapid Support Forces (RSF) could end in a proper ceasefire agreement soon.

WANT TO START A CAREER IN INVESTOR RELATIONS ADVISORY?Enterprise Advisory (formerly known as Inktank Communications) is looking for smart, talented people to help us tell the stories of exciting companies. Enterprise Advisory is the region’s leading investor relations advisory company and works on investor and strategic communications issues that take you deep inside the c-suite. Our clients are in Egypt, Saudi Arabia, the UAE and beyond. Egyptian and foreign nationals alike are welcome to apply.

NEVER WORKED IN INVESTOR RELATIONS OR ADVISORY BEFORE? We have the Enterprise Advisory Development Program. The four-month program will see full-time, paid participants take part in workshops and lectures from veteran investor relations and advisory professionals, while also applying their knowledge in a practical setting. Those who successfully complete the program will be offered full-time positions on staff for a chance to work in a flexible and supportive — but still fast-paced — work environment that eschews micromanagement and rewards good work. Enterprise Advisory offers the chance to build a network of high-ranking individuals across some of the largest and most influential companies in the region through direct exposure to clients.

During the program, you’ll learn:

Finance for non-finance people;
How to analyze businesses, their business models, their strategic advantages, and their strategies;
How to take that information and then tell an audience of investors, journalists, and analysts a compelling and well-developed story;
How to frame individual companies’ stories within the wider macroeconomic environment.

Career switchers are very welcome.

Apply directly to jobs@enterprisemea.com and mention “advisory development program” in your subject line.

☀️ THE WEATHER THIS WEEKEND- We should be in for yet another pleasant and sunny weekend,with highs of 32°C today and tomorrow, and overnight lows of 16°C, according to our favorite weather app.

The real hidden gems tourists should visit in Egypt

Things to do in Egypt that most tour guide books won’t show you: Tourists visiting Egypt will often rave about the Giza Pyramids, the beautiful beaches and the many landmarks in Luxor and Aswan. But there are 27 governorates in this country, many of which include an off the beaten track that can show you a different side of the country that not a lot of people know about — and are often more interesting, cheaper, and are not filled with tens of tourists and long ticket lines. While tourists should definitely make it a point to visit the Pyramids, we think they should also be made aware of the many other cool spots sprawled across the country — from eccentric stores to underwater treasures — especially as famous tourist spots become more pricey — and so crowded they lose some of their money’s worth.

IN CONTEXT- The Tourism Ministry is increasing ticket prices (pdf) to more than 30 tourist attractions — from the Egyptian Museum to the Tomb of Nefertari — by a range between 20-67%, with the price of the latter jumping to a whopping EGP 1.4k. The new prices come into effect as of 1 June.

CAIRO ESCAPADES-

The new 1.8km Mamsha Ahl Misr, near Imbaba Bridge, boasts one of the best views of the Nile river in Cairo. The public walkway — which you can enter with a EGP 20 fee — is pleasant enough for a stroll, but there’s also a string of cafes and restaurants along the promenade that you can visit. For a more athletic experience, you can also rent a bike and cycle your way down the walkway.

Views of the Nile never get old, but what about views from the Nile? If you’re looking to do something fun (and don’t mind getting wet), you can go for some rowing, kayaking or windsurfing classes in the Nile. Clubs likeNile Kayak Club, Cairow, and Rowin offer introductory classes in Dokki and Maadi to those interested. A single session costs between EGP 200-350, depending on how advanced it is.

More of an excursionist? Go to Saint Samaan, the Tanner monastery, which is literally hidden within the walls of a gigantic natural cave in Mokattam. Also known as The Cave Church, the monastery houses three churches and has a seating capacity of 20k, making it the largest monastery in the Middle East. The gorgeous priory utilizes its environment in its decor, the beauty of nature emphasizing its sanctity. The monastery was originally built in the 1960s by the Zabbaleen community in Mokattam and was eventually turned into a church and monastery by the dominantly coptic community, according to the monastery’s website.

You can book a tour of the monastery on the website. While the price is not listed on the website, they do mention that all proceeds go towards upkeep and development of the monastery as well as a list of chosen charities.

ALEX ADVENTURES-

While you’re up in Alex, you should swing by what is hands down the most eccentric stores in Egypt. Former football player Nasser El Sherbini’s shoe-store-turned-museum is a surreal hybrid offering visitors a dash of sociopolitical commentary through a space that is part art gallery and part zoo. The former football player operated the small shoe store for several years before developing an interest in papier-mâché, according to Atlas Obscura. He started sculpting large figures that now adorn the shop, including a gigantic model of a hydra that Atlas Obscura says represents socio-cultural issues, with each head representing an ailment like corruption, racism, and ignorance. You’ll also find caged monkeys and snakes inside the store, just in case the absurdist gallery wasn’t interesting enough. Its mix of curios is what now makes it the Tamr Hena Museum.

HOW TO GET THERE- You can find the museum in El Ibrahimeya on Omar Lotfy Street.

PORT SAID’S SEAFOOD + HISTORY-

Home to one of Egypt’s most important ports, Port Said is a small port city that can be toured in its entirety in a few hours. With impeccable seafood and a number of worthwhile landmarks — including the obelisk of martyrsand an octagon-shaped lighthouse — there’s a lot to see — and experience — in the city. We recommend you also save an hour or two for the beach, which is small and quaint, and if you’re early, you can see fishermen on their boats heading out to fish. And if you’re into Friends, don’t miss out on the Central Perk-inspired cafe located in a narrow alleyway in the city. For seafood, head to El Borg, one of the biggest seafood spots there.

REMOTE EXPERIENCES-

Another 2.5 hours away from Cairo is a little island in Kafr El Sheikh known as Shakhloba Island, a venetian paradise painted in lush greens on Lake Burullus, right at the edge of the Mediterranean. The population is comprised mostlyof fishermen, boat builders, and net weavers, but some of them must secretly be artists as well, as their houses are covered in beautiful, colorful graffiti.

But beware: The road less traveled is unfortunately the road less paved, so the ride there will definitely not be the most comfortable experience. A felucca will take you out to one of the houses on one of the many tiny islands where you can have lunch in the middle of the lake.Emo Tours provides a day tour that includes a tour guide, lunch, and pickup/dropoff for USD 100 per person for a group of two or three people, or USD 75 for a group of four or six.

Another hidden gem in Kafr El Sheikh: The historic city of Fuwwah, which is filled with picturesque mosques and kilim workshops almost on every corner. The village was declared by UNESCO as the third largest city containing Islamic architecture after Cairo and Rashid, according to Youm7. The city is also famous for fesikh, the traditional Egyptian salted and pickled fish most Egyptians eat during Sham El Nessim.

The Arab world’s first 3D movie is out + this Boba truck is perfect for warm weekends

📽 AT THE MOVIES-

Director James Gunn goes above and beyond in the last installment of the Guardians of the Galaxy franchise. If, like us, you thought Ant-man and the Wasp: Quantumania set a disappointing tone for phase five of the MCU, you’ll find hope that the future of the cinematic universe is in good hands in Guardians of the Galaxy Vol. 3 (watch, runtime: 2:21). The most emotional of the sequels, Vol. 3 delivers — as predicted by many fans — a heart-wrenching plot with a bittersweet ending as the Guardians travel across galaxies to save their friend.

While some film critics are incomprehensibly bashing the film, it currently boasts an 81% on Rotten Tomatoes and an 8.4 on IMDB. The film does not depart from the ‘found family’ theme that characterizes the trilogy, though Vol. 3 digs deeper by exploring those connections and giving them the context they previously lacked. This movie is, essentially, about learning when to hold on and when to let go, though Gunn, who also co-wrote the script, doesn’t seem to have a solid grasp on that concept yet, deciding not to give the Guardians a definitive conclusion to their story.

WHERE TO WATCH- You can catch this movie in any VOX Cinema, Cairo Festival Cinema, Stars Cinema, and pretty much any other movie theater across Cairo.

Day 13 (watch, runtime: 1:25) is Egypt’s first ever 3D movie… but that’s pretty much the only good we have to say about it. Unfortunately, the star-studded cast — which includes Ahmed Dawood, Dina El Sherbiny, Magdy Kamel, Sherif Mounir, and Jumana Mourad — was no match for the dire script. The premise itself is solid, with the plot revolving around a group of characters who band together to solve the mystery of the spirit haunting the protagonist’s ancestral mansion in an attempt to expel it. While the acting is actually quite good all things considered, the plot has more holes than a sieve, and the heavy-handedness was inadvertently comical. Let’s just say that one scene saw the camera zoom in on the license plate of a car that takes Dawood’s character to the haunted mansion, and the plate spells the Arabic equivalent of “boo.”

But let’s focus on the positive. For a first attempt at 3D filmmaking, what they’ve accomplished is actually impressive. The effect worked well for the majority of the film, though not without some glitches. Forced visual foreshadowing aside, the cinematography was great, and captured both the charm and the eeriness of antiquated architecture, even if the film did seem to be a little confused about which decade it was supposed to be portraying.

WHERE TO WATCH- You can catch showings at VOX Cinemas, Stars Cinema, and most movie theaters in Cairo.

📚 FROM THE BOOKSTORE-

A horror story with maximum emotional impact: Retelling Poe: What Moves theDeadis based on Edgar Allan Poe’s classic short story, The Fall of the House of Usherpublished in 1839. In T. Kingfisher’s version, the narrator, and the story line is more fleshed out with color and details added to one of our favorite horror writers. The retelling of the original story weaves in more complex character dynamics and “bitingly dark humor,” along with a hefty dose of body horror, according to a Paste Magazine review. It also leans into the found family trope with delicacy and emotion, Lacy Milas writes for the magazine.

WHO’S T. KINGFISHER?T. Kingfisher is actually the pen name of Ursula Vernon, a 45-year-old author who was born in Japan and currently lives in North Carolina. The prolific author and illustrator — who is behind the popular Dragonbreath children’s series — continues to expand her bibliography which features graphic novels, novels, short stories and more.

WHERE TO BUY- Sadly, the book is not available in Egypt but you can purchase an online version from Amazon.

🍴 HOT AND FRESH OUT OF THE KITCHEN-

For fans of Boba: As the weather gets sunnier, we’re opting to get some vitamin D this weekend by hanging out at The Drive by The Waterway for a stroll and refreshing drink. We’re heading to PÀO, a Taiwanese food truck, which is also located in The Twelve by The Platform in Sheikh Zayed for the city’s Western-side dwellers. The truck’s menu features endless options for boba lovers: From brown sugar matcha boba to strawberry matcha lattes. You can add extra toppings like tapioca, popping boba, honeycomb, and more. And, when you get hungry: you can opt for a croffle, which is a croissant/waffle hybrid. Each drink has its own vibe, and our favorites were the jasmine peach fruit tea with lychee boba or coconut jelly, a fun summery drink, their creamy coffee series dalgona, which is perfect for breakfast, and the classic brown sugar milk boba.

💵 Per person:EGP 85-120

🪑 Outdoor seating: Yes

🍺 Alcohol: No

🦽 Accessibility friendly: Yes

Inside the life and legacy of late oceanographer Jacques Cousteau

Becoming Cousteau pays tribute to late oceanographer Jacques Cousteau’s impactful career, which saw him wear plenty of hats, including oceanographer, filmmaker, author, inventor and ultimately, environmentalist. The 2021 National Geographic documentary — which was co-produced by his children — was released nearly 25 years after Cousteau’s death, and documents his achievements, from his development — alongside Emile Gagnan — of the Aqua-Lung, also known as the Scuba, which is the regulator used by scuba divers to help divers breathe underwater, to his contribution to the knowledge and science around the world’s oceans. Filled with great archival footage of everything from coral reefs and French men’s swimwear to more personal, family-focused moments, as well as narration from his children, the documentary takes us through Cousteau’s legacy as a massive pop culture figure and an environmentalist — while navigating the losses that permeated his life, including that of his wife and son.

WHERE TO WATCH- You can stream the 94-minute long feature film on Disney+.

THE ENTERPRISE ENTERTAINMENT CALENDAR

MAY

May: The sixth edition of Cairo Cinema Days at Zaywa Cinema.

6-20 May (Saturday-Saturday): Cairo Film Society Festival for Egyptian Cinema at the Artistic Creativity Center at the Cairo Opera House.

11-13 May (Thursday-Saturday): Sandbox Festival at El Gouna.

12 May (Friday): Amr Diab concert at 7pm at AUC.

12-15 May (Friday-Monday): Cairo Fashion Week at the Egyptian Museum in Tahrir.

13 May (Saturday): Annual Flower Exhibition from 10AM at the Orman Garden.

15 May (Monday): Last day to register for TriFactory’s Somabay Endurance Festival.

24 May (Wednesday): Last day of Omar Abdel Zaher’s Roots exhibition at the Safarkhan Art Gallery.

25-27 May (Thursday-Saturday): TriFactory’s Somabay Endurance Festival.

JUNE

9 June (Friday): TriFactory Madinaty Half Marathon.

10 June (Saturday): Thanaweya Amma examinations begin.

15 June (Thursday): Last day of the Traces of Egypt Exhibition at the Grand Egyptian Museum.

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

30 June (Friday): June 30 Revolution Day.

JULY

18 July (Tuesday): Islamic New Year.

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

23 July (Sunday): Revolution Day.

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

SEPTEMBER

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

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

OCTOBER

6 October (Friday): Armed Forces Day.

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

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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