Good morning friends and we wish you a very happy Friday. We have a packed issue with several economic updates, a smattering of privatization news, and some energy developments.
Therapy isn’t as taboo as it once was — especially if you know how to approach it. In fact, today our mental well-being accounts to our own physical and emotional wellness and contributes immensely to our longevity, as well.
And with that said, we are sharing a list of venues to visit if you want to see a therapist. Whether you are dealing with a one-off issue or have a lot of knots to unravel, we hope that you find a safe starting point from our list 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-
Israel’s ruthless assault on Gaza entered its fifth week and claimed the lives of over 10k Palestinians, according to Palestinian Health Ministry records. The IDF’s aerial bombing campaign continued to exact an enormous toll on civilians and infrastructure in the territory, while ground forces pushed deeper into Gaza.
In business news, we had a smattering of energy, privatization, and macro updates this week: We had the usual economic data points that come with the start of a new month, as non-oil private sector performance indicators pointed to a continued contraction at the same time as yet another credit ratings agency slashed our sovereign credit rating.
On the privatization front, Heliopolis Housing and Development could be up for grabs and ADQ might be in the running for a stake in another state-owned enterprise. Fresh energy investments and news of increased gas supply reaching our shores also rounded out a busy week.
ISRAEL’S WAR ON GAZA-
Last weekend, Israel carried out attacks all over Gaza, killing more innocent civilians and destroying homes.Israel attacked an ambulance convoy outside of Al Shifa hospital, two refugee camps, four UN schools providing shelter for refugees, the AFP’s Gaza bureau, and the French Institute in Gaza.
Ground forces entered Gaza City on Tuesday in what the Israeli Defense Forces are portraying as an operation aimed at destroying Hamas’ tunnels, eliminating ammo dumps, and killing its senior commanders.
US Secretary of State Antony Blinken ended three days of diplomacy in the region no closer to a consensus about the best way forward in Israel’s brutal war on Gaza.
If Israel defeats Hamas, the occupation forces could be back on the ground in Gaza full-time: “Israel will for an indefinite period” have overall security responsibility for Gaza following the war, Netanyahu said. The White House has since opposed this course of action, with Blinken reiterating its position that the Palestinian Authority should be handed control of Gaza should Hamas be defeated.
The death toll from Israeli strikes in Gaza has reached over 10.6k, including over 4k children.
So far, 569 trucks have entered Gaza since October 7. 500 trucks entered the strip every day prior to the war.
Over 500k Palestinians in north Gaza are “on the brink of starvation” due to Israel’s siege, according to Action Aid.
More than 1k foreigners and 84 injured Gazans crossed the Rafah border crossing into Egypt between Wednesday and Friday last week, the Wall Street Journal reported on Sunday, citing Egyptian officials..
Tens of foreign nationals left Gaza on Monday after border authorities reopened the Rafah crossing following a two-day suspension.
And some 500+ foreign nationals and dual citizens were evacuated from Gaza on Tuesday into Egypt.
SOME ECONOMY NEWS-
#1- Fitch Ratings downgraded our sovereign credit rating deeper into junk on Friday. The ratings agency cut our credit rating to B- from B due to “increased risks to external financing, macroeconomic stability and the trajectory of already-high government debt,” in addition to slow progress on reforms and FX constraints.
#2- The contraction in our non-oil private sector deepened in October, with S&P Global’slatest PMI index reaching 47.9, down from 48.7 in September. The index posted its “sharpest deterioration” in five months due to rising prices and the ongoing FX shortage.
#3- Net foreign reserves were more or less flat at USD 35.1 bn at the end of October compared to USD 34.97 bn at the end of September.
#4- Economic growth almost halved to 3.8% in FY 2022-23 from 6.6% the year prior due to the effects of the war in Ukraine on supply chains and the “exacerbation of the external debt crisis in emerging markets and developing countries.”
#5- On a more positive note, getting through our FX crunch could be within reach. That’s according to a research note to clients by EFG Hermes lead MENA economist Mohamed Abu Basha, which estimates that we need a foreign currency liquidity buffer of between USD 8-10 bn to get through the FX crunch and go ahead with a successful float in the coming months. EFG Hermes believes the Madbouly government will be able to bring in that money from a combination of privatization, debt, and state revenues.
CHANGES TO THE BUDGET-
Ministers approved in principle fresh cuts to government spending through the end of the current fiscal year due to the ongoing FX crunch. New projects that require FX and are yet to begin and any spending that fails to qualify as “extremely necessary,” will be delayed.
A COUPLE OF ENERGY UPDATES-
#1- Israeli gas imports picked up last week to 250 mn cubic feet per day after a sudden slump in supply following the outbreak of the war on Gaza. Separate reports put that figure at 350 mn cubic feet per day.
#2-The government has reportedly increased gas supplies earmarked for fertilizer companies, reversing a 30% supply cut introduced last week following a sharp downturn in imports of natural gas from Israel.
#3- Vestas’ 250 MW Suez wind farm is due to link up with the grid next month: The wind farm, in the works since 2020, will be handed over to the New and Renewable Energy Authority by mid-December.
#4- Cheiron’s Pico Petroleum and the Kuwait Foreign Petroleum Exploration Company (Kufpec) will invest USD 119.5 mn over the next five years to increase production at the Geisum and Tawila West concession in the Gulf of Suez.
#5-Acwa Power and Hassan Allam are going to start building the region’s largest wind farm in 2024: The partners expect to break ground on the USD 1.5 bn, 1.1 GW wind farm in the Gulf of Suez — the largest of its kind in the Middle East — early next year.
PRIVATIZATION DEVELOPMENTS-
#1- ADQ might have an EgyptAlum acquisition in the pipeline: Abu Dhabi’s wealth fund ADQ is reportedly mulling over acquiring up to a 30% stake in EGX-listed Egypt Aluminum (EgyptAlum) from the Holding Company for Metallurgical Industries, which holds an 89.8% stake in the company.
ADQ might have competition: While ADQ has not made an official offer, other Gulf entities and Qatar are interested in snapping up a portion of the company.
#2- The government is considering selling a stake in Heliopolis Housing and Development and has hired NI Capital to offer a valuation ahead of a potential sale. Local and Gulf investors have previously shown interest in the company, which the government reportedly considers one of the easiest state-owned firms to exit.
#3- Private-sector players could soon manage the nation’s airports, as the government prepares to invite private companies to submit bids for management rights, Prime Minister Moustafa Madbouly said this week. Operation and management of seaports, dry ports, and public transport lines could soon be up for tender as well.
DEBT WATCH-
#1- Our second samurai bond issuance hit the Japanese market: Egypt raised JPY 75 bn(c. USD 500 mn) in a JPY-denominated bond sale in Japan, marking the country’s second samurai bond sale.
#2- Orascom Real Estate (ORE) lined up EGP 6 bn to fast-track construction at its O West project in Sixth of October.
#3- The Arab African International Bank (AAIB) extended a EGP 3.5 bn facility to Tatweer Misr to accelerate the construction of its Il Monte Galala project in Ain Sokhna and Bloomfields in Mostakbal City.
#4- United Bank’s financing arm United Finance raised EGP 617.5 mn in a securitized bond issuance. The bond was backed by a EGP 993 mn portfolio of leasing contracts.
LEGISLATION-
Cigarette tax hike was signed into law: The new VAT law on cigarettes, which adds EGP 0.50 to all tobacco products including heated tobacco products and liquid tobacco, was passed into law this week.
AND- Eastern Tobacco followed up with a price hike: State-owned tobacco giant Eastern Company published a new price list for its tobacco products starting yesterday that raises prices between 12% and 33% following the new VAT amendments.
TOURISM-
Egypt is on track to meet its target of attracting 15 mn tourists this year despite the impact of the war in Gaza. Less than 10% of bookings have been canceled since the war started more than four weeks ago, and tourist numbers were up 7% y-o-y in October.
WHAT’S HAPPENING NEXT WEEK-
The Arab League is getting together tomorrow for an emergency meeting in Riyadh called for by Palestinian President Mahmoud Abbas. The league’s main goal at the moment is to establish a ceasefire in Gaza.
The Organization of Islamic Cooperation meets on Sunday, 12 November in Riyadh for an extraordinary meeting “to discuss the brutal Israeli aggression against the Palestinian people.”
The House of Representatives reconvenes Sunday, 12 November.
Deadline for technical and financial offers for Misr Aluminum Company rehabilitationproject elapses on Sunday, 12 November after being extended from the previous deadline of 12 October.
Destination Africa takes place next Tuesday and Wednesday, 14-15 November at the Royal Maxim Palace Kempinski Hotel.
Egypt VC Summit also runs on Tuesday and Wednesdayat the Conrad Hotel.
The deadline for the mandatory tender offer to buy back Dice Sports and Casual Wear’s46.9% stake elapses on Wednesday, 15 November.
Cairo International Film Festival kicks off on Wednesday, 15 November and runs through Friday, 24 November.
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-
- Information about the 13 agreements with local and international companies in the Transmea2023 expo was frequently opened. (Transport Ministry statement)
- More details about the Chicago Booth Executive Program in El Gouna and its deadline on Sunday 11 February 2024 interested readers. (The Chicago Booth Executive Program)
- The documentary on Herro Mustafa Garg’s family got plenty of love. (Wikipedia page)
- Fawry’s statement falsifying the news of a cyberattack had many of you clicking. (Fawry statement)
- Eastern Company’s statement on cigarette price hikes was also popular. (Eastern Company’s statement)
AROUND THE WORLD IN SEVEN DAYS-

Israel’s relentless air and ground campaign in Gaza continued to dominate headlines in the international press:
Tensions between Biden and Netanyahu over a “humanitarian pause” and post-war plans captured the attention of western news outlets this week: Differences between the Biden administration and Israeli Prime Minister Benjamin Netanyahu’s preferred handling of the war in Gaza were publicly aired this week. Biden’s push for a pause in fighting to allow hostage negotiations to commence has fallen on deaf ears as Netanyahu insists on pressing forward with his brutal campaign. Netanyahu’s proposal to reoccupy Gaza after the conflict, also proved to be a sore point between the two allies.
The 2024 US election cycle is starting to garner more widespread attention in the international press. Donald Trump, the presumptive Republican nominee, is polling ahead of Joe Biden in five of six battleground states, according to the New York Times. The Financial Times suggests Trump’s lead in polls is owed primarily to “fears over war and economy” hurting Biden. US voters will head to the polls in a little under a year to cast their ballots in the presidential elections on Tuesday, 5 November.
Epic Games’ lawsuit against Google is also generating some digital ink: A month-long trial against Google kicked off this week after Epic Games — the video game creator behind Fortnite — filed a lawsuit accusing the tech giant of monopolizing the Android app market by forcing developers to use its own payment system and charging excessive fees on Google Play.
ALSO- FTX founder Sam Bankman-Fried was found guilty of stealing from his crypto exchange’s customers in New York on Thursday.
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⛅ THE WEATHER THIS WEEKEND- Today’s weather will be mostly sunny with a high of 29°C in the day time dropping to a cooler 20°C in the evening. Tomorrow sees more foggy weather in the morning but with sunny skies later. By the evening the thermometer should drop to 18°C, according to our favorite weather app.
HAPPENING THIS WEEKEND-
The Ibero-American Film Week has kicked off and will continue until 18 November. A new film is displayed every day at 6:30pm at Zawya cinema, Downtown. You can learn more about the film’s schedule from here. Entrance is based on a first-come, first-serve policy.
Catch up on Ali Elhaggar’s live interview and performance. The event will be hosted by the TV presenter Mahmoud Saad and will be held at the Arab Music Institute theater, Ramses on Saturday 11 November. Book your ticket from here.
Looking for something to get your heart pumping? The TriFactory’s El Gouna Half Marathon is taking place on Saturday, 11 November.
HAPPENING NEXT WEEKEND-
The exhibition Forever Is Now is back again at the Pyramids, open 9am until 4pm daily through 18 November. Book your ticket here or buy one on arrival.
Catch a rendition of Tawfiq al-Hakim’s Bank of Anxiety this week and next. It follows two friends who establish a private bank that uses anxiety as the currency. The play is scheduled from Wednesday-Sunday, 15-19 November at the Falaki Theater at AUC’s Tahrir campus. Admittance is unpaid, but you will be required to show a photo ID.


