Good morning, friends, and — as always — happy Friday to us all. This week has been jam-packed with news about the regional conflict and the updates that frequent our news feed daily. Meanwhile, economic and debt updates have also dominated the local front, too along with a side of privatization news.
Cultural events have always been a refuge when traveling out of town is out of season. This weekend, we have the guide for the cultural event of the year, The Downtown Contemporary Arts Festival, where you can sample the best of what Egypt and the world has to offer when it comes to theater, performance art, video installation, music and dance, alongside a myriad of workshops.
Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy your weekend.
LAST WEEK IN 3 MINS-
Israel’s siege of Gaza dominated headlines at home and around the world for the second week as the human toll of its assault on the strip intensified. On the economic front, we saw a handful of potential loan agreements as well as a few developments stemming from our FX crunch.
THE ISRAEL-PALESTINE CONFLICT WAS THE BIG STORY OF THE WEEK-
As many as 500 people were killed on Tuesday after Israel bombed a hospital in Gaza, Palestinian health authorities said. Israel blamed the attack on Palestinian Islamic Jihad. The Israeli military claims the blast was the result of a rocket fired by PIJ that failed after launching.
President Abdel Fattah El Sisi accused Israel of being responsible in a statement that condemned “in the strongest terms this deliberate bombing.”
Egypt condemned Israel’s displacement of Gazans: Our Foreign Ministry denounced Israel’sorder that some 1 mn Palestinians in Gaza leave their homes as a “grave violation” of international law. El Sisi rejected calls by Israel and Western nations to allow Gazans into Egypt, saying that Palestinians should remain on their land.
An “unprecedented human catastrophe” is taking place in Gaza nearly two weeks into Israel’s siege, the head of the UN’s Palestinian refugee agency, Philippe Lazzarini, said earlier this week. Thousands of people are without shelter, with an estimated 1 mn people displaced by the conflict.
Aid could enter Gaza as early as today: Egypt may be able to open the Rafah border crossing into Gaza to allow the delivery of “limited” humanitarian aid as of today, US President Joe Biden said on Wednesday. Israel has imposed a total blockade on the strip, triggering a shortage of water and food and leaving hospitals on the verge of collapse.
Jordan canceled its planned four-way summit in Amman that aimed to bring together the leaders of Jordan, Egypt, the US and the Palestinian Authority due to Washington’s stance on the war. Jordan’s King Abdullah instead made his way to Cairo, where he met with El Sisi yesterday.
HERE AT HOME, THERE WERE ALSO PLENTY OF ECONOMIC DEVELOPMENTS-
#1- The government is looking to expand its IMF loan program and is reportedly in talks with the IMF to raise its USD 3 bn loan program to more than USD 5 bn.
#2- The IMF expects our budget deficit to increase to 10.7% of GDP this year from an estimated 4.6% the previous year. The IMF had projected a 9.2% deficit this fiscal year in its previous forecast in April.
#3- Banks in Egypt began imposing strict new instructions from the Central Bank of Egypt (CBE) on credit card use for FX transactions at home and abroad. Credit card holders will now only be allowed to spend the equivalent of EGP 7,750 per month in Egypt. Individuals wanting to use their cards abroad will need to contact their banks and provide proof they’re planning to travel before card issuers allow a more generous limit.
#4- Standard Chartered sees no devaluation or changes to interest rates before the end of this year: The bank thinks that Egypt will not see further devaluations of the EGP or changes in interest rates until the end of the year.
WE ALSO HAD A GOOD SERVING OF DEBT NEWS-
#1- Egypt closed its maiden panda bond issuance in China this week with a CNY 3.5 bn (USD 478.7 mn) issuance. The three-year securities were priced at a 3.51% annual rate, lower than the yield on USD-denominated debt. The proceeds will be used to finance the country’s sustainable development goals.
#2- The government expects to borrow at least USD 1.5 bn between now and the end of the year: Planned borrowing includes the USD 500 mn issuances of CNY-denominated bonds and JPY-denominated bonds in November.
…and wants to secure as much as USD 3 bn in fresh debt financing by the end of the fiscal year through bond issuances and international loans, a senior Finance Ministry official told us. The fresh funds will help bolster the budget and help the country meet any emergency financing needs.
#3- EBRD could be directing USD 325 mn to local SMEs and green projects… The European Bank for Reconstruction and Development (EBRD) is considering lending USD 325 mn to four local banks for on-lending to local SMEs and green projects before the end of 2023.
…and up to EUR 165 mn to upgrade the country’s electricity transmission grid. The European Bank of Reconstruction and Development (EBRD) is also considering providing a sovereign loan of up to EUR 165 mn for on-lending to the state-owned Egyptian Electricity Transmission Company (EETC).
#4- IFC to help finance our MSMEs: The International Financial Corporation (IFC) will provide state-owned Banque Misr with a USD 234 mn loan for on-lending to privately-owned micro, small, and medium-sized enterprises (MSMEs), with half of the loan earmarked for women-led businesses.
#5- El Sewedy copper unit lands EBRD loan: Elsewedy Electric subsidiary United Metals Company (UMC) will receive a USD 50 mn loan from the EBRD to finance its working capital. The loan will help UMC’s hard-currency working capital needs, supporting its ability to import important raw materials like copper cathodes.
AS WELL AS A PRIVATIZATION UPDATE-
Shell and China’s North Petroleum want a piece of Wataniya: Shell Oil has reportedlyteamed up with an unnamed investor owned by the Saudi government to target a stake in the military-owned filling station operator Wataniya. China’s North Petroleum also submitted an offer. The Sovereign Fund of Egypt is working to sell at least 10% — and potentially as much as 100% — of Wataniya as part of the state’s privatization program.
Six companies are now reportedly in the running: Taqa Arabia, Abu Dhabi National Oil Company (Adnoc), Emirates National Oil Company (ENOC), and Saudi firm Petromin have all reportedly submitted offers for the Wataniya stake. Bids reportedly range between USD 250 mn and USD 280 mn.
AND A BIG INVESTMENT TICKET-
#1- Chinese companies could invest as much as USD 15.5 bn in the Suez Canal Economic Zone (SCZone) after a series of agreements were signed at China’s Belt and Road Forum.
#2- West Qantara could see USD 101.3 mn in textile investments: The SCZone and a number of Chinese companies signed agreements to establish textile projects worth a combined USD 101.3 mn in investment in the West Qantara Industrial Zone.
#3- China’s largest cable manufacturer to expand SCZone factory: Chinese cable manufacturer Hengtong will invest USD 18 mn to expand its factory in the TEDA zone. The company will add 21k sqm to its factory in the Chinese industrial zone — almost four times its current size — allowing it to produce up to 2 mn km of cables a year.
M&A WATCH-
Dice’s founding family is set to increase its share of the company to c. 80%: Founders of EGX-listed clothing company Dice Sports and Casual Wear offered to purchase more than 838 mn of its shares — 46.9% of the company — at EGP 0.65 per share, putting the total acquisition value at EGP 544.8 mn.
SUEZ CANAL-
The SCA is hiking transit fees next year: Starting 15 January 2024, the Suez Canal Authority (SCA) will hike transit fees by 15% for a number of different vessel types including oil tankers, LNG and LPG carriers, and container ships.
LEGISLATION-
The House was back in session this week and signed off on a raft of new bills that include:
- Amendments to the Income Tax Act that would raise the tax exemption threshold by 25% to EGP 45k from EGP 36k.
- A draft bill that amends the 2022 law t o raise the exceptional cost of living allowance to EGP 600 for all state employees and doubles an exceptional grant for pensioners to EGP 600.
- A bill that would let Prime Minister Madbouly extend the expat car-for-FX initiative for three months.
ELECTIONS 2023-
The presidential election is going to be a four-person race after Republican People’s Party leader Hazem Omar submitted his running papers. Omar joins President Abdel Fattah El Sisi, Farid Zahran (Social Democratic Party), and Abdel-Sanad Yamama (Al Wafd) in the race.
WHAT’S HAPPENING NEXT WEEK-

Daylight saving time ends on Thursday, 26 October. The government introduced daylight saving time earlier this year following a seven year hiatus in a bid to conserve energy.
Deadline for bidding in a tender for five solar plants on the north coast ends on Friday, 27 October. The Egyptian Electricity Holding Company (EEHC) earlier this year extended the bidding deadline on the tender to construct five concentrated solar power (CSP) plants to power water desalination plants upon the request of the bidding companies.
The El Gouna Film Festival kicks off on Friday, 27 October and wraps on Thursday, 2 November. The festival was initially slated to take place this week.
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-
- We all shared a specific mood with the ongoing developments in the region — r-rated as it may have been. (Instagram reel)
- This post from X (also not for young ears) capturing a demonstration downtown earned plenty of attention. (X video)
- The National Dialogue’s statement calling for mass protests in front of the Unknown Soldier’s monument in Nasr City was widely viewed. (National Dialogue statement)
- Many of you were interested in Herro Mustafa Garg’s assignment as our new US ambassador. (State Department statement)
- The CBE’s announcement on the new credit card limits was also a big read for many of you. (CBE statement)
AROUND THE WORLD IN SEVEN DAYS-

Biden’s support for Israel’s claim that the bombing at a Gaza hospital was a result of “friendly fire” dominated coverage by western news outlets. US President Joe Biden during his visit to Tel Aviv publicly supported Israel’s claim that the cause of the explosion at the Ahli Al Arabi hospital on Tuesday, which took the lives of c. 500 people, came from “an errant rocket fired by a terrorist group in Gaza.”
And scattered protests cropped up across the region: Protests in Jordan, Lebanon, Morocco, Bahrain, Egypt and the occupied West Bank — are raising concerns that the brutal assault on Gaza could widen conflict in the region.
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☀️ THE WEATHER THIS WEEKEND- Today will continue to be sunny reaching a high of 31°C in the daytime and dipping to a cooler 23°C in the evening. Tomorrow will be slightly cloudy, with a high of 30°C in the day and cooling off to 21°C at night, shares our favorite weather app.
HAPPENING THIS WEEKEND-
Dust off your windbreakers this weekend at Room Art Space in Garden City for theirBack to the nineties event with performances of your favorite Arabic 90s songs on tonight from 8pm. Get your tickets at the branch or from this link.
Music enthusiasts, this one’s for you: The annual Cairo International Jazz Festival is happening at AUC’s Tahrir campus from Thursday, 26 October to Friday, 3 November. For more information contact them on their page.
The Downtown Contemporary Arts Festival (D-Caf) has kicked off and will continue until Sunday, 5 November. The festival is taking place in several places and art centers in the downtown area. You can check the events and buy the tickets through D-CAF’s website.
HAPPENING NEXT WEEKEND-
We’ve got you covered this Halloween:Cairo Jazz Club is hosting a Haunted Mansionnight of eeriness and hit tunes on Friday, 27 October. Costumes are mandatory and you can reserve your spot on their Facebook page.
Get your spook on at KMT House’s Creepy Carnival on Saturday, 28 October from 10 am-10pm. Get your tickets from Ticketsmall.
NOT HAPPENING NEXT WEEK-
The 6th Edition of the El Gouna Film Festival has been postponed until the conditions in Palestine settle, according to a statement shared on the festival’s Instagram page.


