Good morning friends and happy Friday. We hope that you are having a restful day off after this week that was busy with economic news, privatization updates, and a smattering of energy headlines.

It is that time of year where we get more of the sniffles and feel a drop in our mood, as winter knocks on our doors it often knocks us off our mark. But don’t fret, we have a list of what you can do to take care of yourself during this cooler season.

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- We had another week where the news cycle was dominated in large part by the ongoing assault on Gaza, while on the local front we had some updates on the business, finance, and privatization fronts to keep us busy.

WAR WATCH-

#1- Israel raids Al Shifa Hospital and leaves empty-handed. The IDF withdrew fromGaza’s main hospital following a 24-hour raid after failing to find substantial evidence proving Hamas’ command center was located in the facility.

Hundreds of patients and thousands of refugees and medical workers were trapped insidefor almost a week without food and basic supplies, according to healthcare officials from inside the hospital. The destruction continued as bulldozers demolished part of the hospital’s entrance.

The Al Shifa raid came after several major hospitals sheltering thousands of refugees came under heavy fire by Israeli forces over the weekend. The Palestinian Red Crescent said Israeli snipers and artillery were targeting the Al Quds Hospital, which is housing 14k people. Al Shifa ran out of fuel on Saturday evening, causing the death of two premature babies and endangering a further 37 -40 babies relying on incubators.

All hospitals in northern Gaza ultimately went out of service, including Gaza City’s two largest hospitals, Al Shifa and Al Quds, as well as Kamal Adwan Hospital.

The Gaza Health Ministry has been unable to update its death toll due to the assault: The ministry’s death toll hasn’t been updated since last Friday as medical workers were unable to reach areas hit by Israeli airstrikes and due to a communications blackout.

#2- UN calls for humanitarian pause: AMalta-proposed resolution calling for “humanitarianpauses and the release of hostages” was passed by the UN Security Council with 12 of the 15 member countries voting in favor. The US, the UK, and Russia abstained. The US had vetoed two previous resolutions advocating for a ceasefire, opting instead for a humanitarian pause.

No ceasefire in sight: Operations will continue until Hamas is eradicated, Israel’s ambassador to the UN Gilad Erdansaid. He called the resolution “disconnected from reality and meaningless.”

#3- The resolution followed calls for an immediate ceasefire from Arab and Muslim nations, although leaders failed to agree on concrete measures against Israel at an emergency summit in Riyadh. In a joint statement, the 57 nations reiterated their condemnations of Israel’s ruthless military campaign in Gaza but could not agree on more punitive measures like severing diplomatic ties and an oil embargo.

#4- Egyptian President Abdel Fattah El Sisi reportedly rejected a proposal from CIA director William Burns that would see Egypt manage security in Gaza until the Palestinian Authority takes control.

#5- Israeli Prime Minister Benjamin Netanyahu doubled down on his previous statements about Gaza’s post-war governance saying that Israel will assume security control of the territory in a televised address.

#6- Meanwhile, Israeli officials again called for support of its drive to dispossess hundreds of thousands of Palestinians from their land in Gaza: They’re imploring Western governments to take in Palestinians “who have expressed a desire to relocate,” for so-called “humanitarian” reasons.

#7- Hamas offered to release 70 women and children in return for a five-day truce to allow in aid. An Israeli official said separately that the two sides could reach an agreement to release all women and children in return for a temporary ceasefire.

At least 11,240 Gazans including 4,630 children have been killed since 7 October, according to BBC and Reuters figures. 102 UN staff members have lost their lives. Telecommunications services in Gaza officially started going offline as service providers run out of fuel, Palestinian telco Paltel said yesterday.

ON A RELATED NOTE- We might be getting some financial support from the EU, in part to help stem migration across the Mediterranean in the wake of the Gaza siege. Brussels is reportedly putting together a EUR 9 bn investment package in sectors including digital, energy, agriculture and transport, and hold an investment conference in spring 2024, along with introducing measures to strengthen the country’s border security and crack down on smuggling as part of plans for a wider strategic partnership with Egypt.

EU Commission President Ursula von der Leyen will visit Cairo tomorrow for talks with President Abdel Fattah El Sisi.

MEANWHILE ON THE ECONOMY FRONT-

#1- Egypt’s unemployment rose to 7.1% in 3Q 2023, a 0.1percentage pointincrease from last quarter. Despite the inch upwards, unemployment rates are down 0.3% y-o-y.

#2- Annual urban inflation in October eased for the first time in six monthsto 35.8%y-o-yfrom 38.0% in September due to slowing food and beverage price inflation. October marked the first time inflation figures have cooled since April. Core inflation also eased in October for the fourth consecutive month to 38.1%y-o-y from 39.7% in September.

#3- Kuwait renewed a USD 4 bn deposit with the Central Bank of Egypt (CBE). The deposit includes two USD 2 bn tranches that will now mature in April and September of next year.

A FEW PRIVATIZATION UPDATES TO KEEP US GOING-

#1- CBE to sell nearly half of its stake in AAIB: The Central Bank of Egypt (CBE) and Kuwait Investment Authority (KIA) agreed on a divestment plan that will see each of them offloading a 20% stake in AAIB. The sale, which is expected to wrap up in 2024, will be carried out via a private placement to a strategic investor and a stake sale on the EGX. AAIB is on the government’s list of 35 state-owned companies earmarked for privatization.

Who owns what? The CBE and the KIA each own a 49.37%-stake in AAIB, with the remaining 1.26% is owned by undisclosed persons or entities.

#2- ACUD received offers from financial advisors for its 2024 IPO: The Administrative Capital for Urban Development Company (ACUD) received offers from several firms to act as financial advisor ahead of an initial public offering on the EGX. The new capital developer said in September that it would offer 10-15% of its shares to investors.

AND AN M&A FINDS CLOSURE-

Dice founders buy back another third of their firm: Localclothing company Dice Sports and Casual Wear’s latest acquisition will see 545 mn shares returned to the founders. The shares were sold at EGP 0.80 per share through a mandatory tender offer. The founding family’s Toma Company for Commercial and Industrial Investments raised their stake in the company by 30.5% for EGP 436 mn.

OVER IN BANKING-

Fitch Ratings downgraded the credit ratings of four major Egyptian banks a week after it cut the country’s sovereign credit rating deeper into junk territory. The agency cut the ratings of the National Bank of Egypt, Banque Misr, CIB, and Banque du Caire to B- from B.

AND ON THE ENERGY FRONT-

We’re getting more gas from Israel: Israeli natural gas exports to Egypt have reportedly risenby 60% to 350-400 mn cubic feet a day, up from 250 mn earlier this month. This comes as Chevron announced it had resumed production from the Tamar gas field, which was shut last month due to safety concerns stemming from the war in Gaza.

THE PUSH TO LOCALIZE OUR AUTO INDUSTRY SAW SOME ACTION-

#1- Elsewedy Capital and Ezz El Arab automotive JV in the works: Elsewedy Capital and automotive group Ezz El Arab launched a joint venture that will assemble combustion engine and electric vehicles with some USD 15 mn in investment earmarked.

#2- GP Corp’s two subsidiaries signed framework agreements with the Madbouly government to boost assembling vehicles locally. GB Corp, is currently building an EGP 2 bn auto factory in Sadat City and is expected to reach an annual capacity of 50k cars.

#3- German carmaker Volkswagen is conducting feasibility studiesfor the establishment of the planned East Port Said Automotive Zone (EPAZ) under an agreement inked this week.

#4- Global Auto Group – the agent and importer for BMW in Egypt – has signed an agreement to begin assembling vehicles locally, according to a cabinet statement yesterday. The agreement was signed with the General Authority for Investment and Free Zones (GAFI) and the Finance’s Ministry’s Environmentally Friendly Automobile Industry Fund (EFAIF).

AND THERE WAS SOME DEBT-

#1- The Central Bank of Egypt raised USD 1.61 bn in a t-bill auction to refinance existing debt. The bills were sold at an interest rate of 5.149%, 550 bps higher than the maturing bills sold in November 2022.

#2- The Finance Ministry secured a USD 500 mn syndicated loan from Deutsche Bank and Bahrain’s Arab Banking Corporation (Bank ABC) to support education and healthcare spending.

#3- The African Export-Import Bank (Afreximbank) agreed to extend USD 3 bn of creditfacilities to Egyptian companies to help support infrastructure projects across Africa. Among the funding agreements:

• Hassan Allam Holding will take out a USD 200 mn credit facility to help funds in at least six African countries.
• Elsewedy Electric signed an agreement for a USD 300 mn facility.
• Arab Contractors will receive a USD 200 mn facility.

TOBACCO-

Cigarette distributors hiked their prices following the cigarette tax hike signed into law last week: JTI-Nakhla Tobacco and Al Mansour International Distribution Company hiked the price of smokes by up to 23%. Philip Morris also raised prices by up to 20%.

WHAT’S HAPPENING NEXT WEEK-

Cairo ICT runs 19-22 November (Sunday-Wednesday) at the Egypt International Exhibition Center.

The EGY-GCC Business Forum’s opening session also kicks off on Wednesday, 22 November.

The Worldview Education Fairtakes place next Thursday, 23 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-

• Brussels’ planned investment and financial assistance package was frequently read. (Bloomberg)
• Phillip Morris’ new cigarette price list after their latest hike had smokers clicking. (Philip Morris’ price list)
• The inquest ruling around the death of a British couple in Hurghada in 2018 was frequently read. (BBC)
• Mercedes Benz announcement that they have a line of EVs for sale in Egypt was popular… (Statement)
• …and the full list of the new Mercedes Benz EV’s mentioned in their brochures got plenty of love. (Brochures web page)

AROUND THE WORLD IN SEVEN DAYS-

Dissent within the US government against the Biden administration’s policy on Gaza is getting picked up by western news outlets: Thousands of State Department and USAID officials are speaking out against the Biden administration’s Israel policy and are calling for a ceasefire. Signatories to the internal state department memo are also reportedly asking that the US more publicly air its criticisms of Israeli military operations and Israel’s treatment of Palestinians.

More bloodshed from Sudan’s civil war is garnering attention in the international press: Intense fighting in the Sudanese region of Darfur is getting coverage after the RSF and its allied militias reportedly killed more than 1k members of the non-Arab Masalit tribe in under 48 hours this week in West Darfur.

The Supreme Court’s ethics updates drew some digital ink: The US Supreme Court adopted its first formal code of conduct after a series of revelations about justices accepting undisclosed trips, gifts, along with other favors they have been cashing in.

ALSO- The Grand Egyptian Museum’s potential opening between February and May of 2024 generated lots of attention: Tourism Ministry Ahmed Issa’s suggested that the site could be open to visitors by then.

?️ THE WEATHER THIS WEEKEND- Today’s slightly cloudy weather will take the mercury up to 27°C and drop to 20°C in the evening. Tomorrow brings more of the same, with a high of 27°C and dropping to a cooler 19°C at night.

HAPPENING THIS WEEKEND-

What does freedom mean to Egypt? Explore the multifaceted interpretations of the concept of freedom with Unbound Harmony: Freedom in Three Voices at The Arts-Mart Gallery. The group exhibition will explore the depth and beauty of artistic expression. You can catch the exhibition Saturday-Thursday of every week until 30 November.

The exhibition Forever Is Now is ending tomorrow. The event is at the Pyramids and is open from 9am until 4pm daily until tomorrow, Saturday, 18 November. Book your ticket here or buy one on arrival.

Also on its last few days: A rendition of Tawfiq al-Hakim’s Bank of Anxiety, which follows two friends who establish a private bank that uses anxiety as the currency. The play runs at the Falaki Theater at AUC’s Tahrir campus until Sunday. No charge for admission, but you’ll need to show a photo ID at the door.