{"id":612002,"date":"2023-12-15T00:00:00","date_gmt":"2023-12-15T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/15\/egypt-election-comes-to-a-close-as-all-votes-counted-israel-to-continue-its-war-on-gaza-with-or-without-international-support\/"},"modified":"2023-12-15T00:00:00","modified_gmt":"2023-12-15T00:00:00","slug":"egypt-election-comes-to-a-close-as-all-votes-counted-israel-to-continue-its-war-on-gaza-with-or-without-international-support","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/15\/egypt-election-comes-to-a-close-as-all-votes-counted-israel-to-continue-its-war-on-gaza-with-or-without-international-support\/","title":{"rendered":"Egypt Election comes to a close as all votes counted + Israel to continue its war on Gaza \u201cwith or without international support\u201d"},"content":{"rendered":"

Good morning, ladies and gentlemen, and HAPPY FRIDAY. <\/strong>The weather is starting to become sunny-fresh as the sun is high this morning and our news cycle is light as the presidential elections and the end of year wind down is dominating the conversation. <\/p>\n

In this week\u2019s Enterprise Guide: <\/strong>With prices soaring, going out for a meal often seems like a blast from the past.<\/strong> Maybe it is time you pull up your sleeves and tap into your inner Julia Childs or Gordon Ramsay and get into the kitchen yourself. Whether you want to venture alone, with a group, or gift the experience to a loved one, our selection of cooking courses in Cairo will inspire and teach something new. <\/p>\n

Enterprise Weekend comes out each Friday at 9:00am CLT.<\/strong> We\u2019ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.<\/p>\n

LAST WEEK IN 3 MINS-<\/strong><\/p>\n

Israel\u2019s assault on Gaza continued to make headlines around the world<\/strong> as global diplomatic pressure for a ceasefire ratcheted up. On the domestic front, we got some clarity on progress made in the state\u2019s privatization drive and some strong indications that our USD 3 bn IMF loan may in fact be expanded. Our presidential elections also came to a close. <\/p>\n

DIPLOMATIC TENSIONS CONTINUED TO SWELL OVER ISRAEL\u2019S ASSAULT ON GAZA-<\/strong><\/p>\n

#1- The UN General Assembly voted overwhelmingly in favor of a ceasefire in an<\/strong> emergency meeting<\/strong>: More than three-quarters of the 193-member UN General Assembly voted on Tuesday<\/a> in favor of a non-binding resolution calling for an \u201cimmediate humanitarian ceasefire\u201d in Gaza. Meanwhile, Israel said<\/a> it will continue its war on Gaza \u201cwith or without international support.\u201d<\/p>\n

The session, called by Egypt and Mauritania, saw 153 countries vote for the resolution<\/strong>, and just ten countries \u2014 including Israel, the US, and Austria \u2014 vote against. Twenty-three nations \u2014 including the UK, Germany, Italy and Ukraine \u2014 abstained.<\/p>\n

\u2026and came after the US blocked a UAE-authored Security Council resolution last Friday<\/strong>calling for an immediate humanitarian ceasefire in Gaza. <\/p>\n

#2- Egypt warned that attempting to displace Palestinians into Sinai could cause a<\/strong> \u201crupture\u201d in the two countries\u2019 relationship. <\/strong>Egyptian officials reportedly expressed concerns<\/a> to Israeli intelligence that its offensive in south Gaza could force thousands of people across the border into Egypt and threaten diplomatic relations with Israel.<\/p>\n

#3- Israeli air strikes <\/strong>leveled multiple areas<\/a><\/strong> in southern Lebanon and Hezbollah launched<\/strong> explosive drones and missiles at Israeli positions.<\/strong> The flare up came a day after Israel\u2019s national security adviser warned that Israel \u201ccan no longer accept\u201d Hezbollah on its border and will \u201cact\u201d if they continue to pose a threat.<\/p>\n

#4- At least 18.8 k Palestinians have been killed in Gaza since 7 October<\/strong>. Almost 51k have<\/a>been injured<\/a> and 1.9 mn people \u2014 85% of Gaza\u2019s population \u2014 have been displaced.<\/p>\n

#5- Gaza\u2019s supply of freshwater is at risk:<\/strong> The Israeli military is pumping seawater<\/a> into Hamas\u2019s tunnel network in Gaza, which could endanger Gaza\u2019s fresh water supply.<\/p>\n

SOME NOT SO GRIM MACRO UPDATES-<\/strong><\/p>\n

#1- The IMF <\/strong>gave its most explicit indication<\/a><\/strong> yet that it could agree to increasing the size<\/strong> of Egypt\u2019s USD 3 bn loan program<\/strong>. \u201cIt is clear that additional financing will be critical to ensure the success in the implementation of the policy package for Egypt,\u201d IMF Communications Director Julie Kozack said. <\/p>\n

The exact amount is still to be finalized,<\/strong> but some unconfirmed media reports suggest that the loan could get up to USD 10-12 bn<\/a>.<\/p>\n

#2- A second month of encouraging inflation figures: <\/strong>Inflation eased for the second<\/a>consecutive month<\/a> in November to reach its lowest level in six months thanks to a favorable base effect and slower food price increases. Figures published on Sunday, 10 December showed that inflation in urban areas slowed to 34.6% y-o-y last month from 35.8% in October.<\/p>\n

#3- Private-sector workers making minimum wage will officially get a salary bump starting 2024,<\/strong> according to a decision published in the Official Gazette on Monday. From 1 January, the minimum wage will rise 17%<\/a> to EGP 3.5k a month (before taxes and social insurance deductions) from EGP 3k currently in a move announced in October to cushion the impact of soaring inflation on low-income households.<\/p>\n

OUR PRESIDENTIAL ELECTIONS CAME TO A CLOSE -<\/strong><\/p>\n

#1- Egyptians were out at the polls this week to cast their ballots in this year\u2019s<\/strong> presidential election: <\/strong>The National Elections Authority (NEA) has completed receiving the vote counts<\/a> after three days of voting ended on Tuesday.<\/p>\n

Local media reported overwhelming victories for incumbent President Abdel Fattah El<\/strong> Sisi in several areas<\/strong>. The results are expected to be announced Monday, 18 December.<\/p>\n

WE SAW SOME PROGRESS IN THE STATE\u2019S PRIVATIZATION DRIVE-<\/strong><\/p>\n

#1- The Sovereign Fund of Egypt (SFE) is gearing up for new sales of state-owned<\/strong> companies in 1Q 2024. <\/strong>The privatization program will expand<\/a> to include infrastructure and financial services companies, according to SFE CEO Ayman Soliman.<\/p>\n

#2- The SFE <\/strong>is set to finalize<\/a><\/strong> a contract with a consortium that will be in charge of<\/strong> developing the site of the former National Democratic Party (NDP) headquarters<\/strong> in Downtown Cairo before the end of the year. The fund has reportedly already determined which consortium is getting the contract and will make an announcement once the paperwork is signed. Several news outlets have reported that Gulf contractors are in line for the contract.<\/p>\n

VAT WILL STILL BE OWED IN USD-<\/strong><\/p>\n

You won\u2019t be able to settle your VAT dues on foreign currency sales in EGP after all: <\/strong>All businesses pricing goods and services in foreign currency will now have to settle<\/a> their VAT dues in foreign currency. This came after the Finance Ministry scrapped a rule that previously allowed them to pay in EGP provided they had evidence that they had exchanged an equivalent amount of FX.<\/p>\n

AN END TO THE SUGAR CRISIS IN SIGHT?<\/strong><\/p>\n

The government has introduced a number of measures to calm sugar prices in recent days<\/strong>, including a decision issued yesterday that extends an export ban for another three months until March 2024, in addition to making more sugar available to ration card holders. The Supply Ministry will also take steps to improve the supply of sugar and other basic commodities in the market, according to a cabinet readout on Wednesday<\/a>. The statement didn\u2019t say whether the ministry would tap strategic reserves \u2014 which is now at almost eight months<\/a> for sugar \u2014 or import more to address the gaps. Sugar prices have soared to record highs in recent weeks and have jumped more than 50% in the past week alone reaching more than EGP 55 for a 1kg bag.<\/p>\n

WHAT\u2019S HAPPENING NEXT WEEK-<\/strong><\/p>\n

<\/p>\n

Grand Ethiopian Renaissance Dam (GERD) talks are set to resume 16-18 December<\/strong> (Saturday-Monday)<\/strong> in Addis Ababa. Egypt, Ethiopia, and Sudan will enter into the fourth round of talks over the filling and operation of the Grand Ethiopian Renaissance Dam (GERD) since President Abdel Fattah El Sisi and Ethiopian Prime Minister Abiy Ahmed agreed to re-enter negotiations in July and reach an agreement within four months. <\/p>\n

The Central Bank of Egypt\u2019s Monetary Policy Committee will meet on Thursday, 21<\/strong> December <\/strong>to review interest rates. The rate review will follow shortly after inflation figures eased slightly to 34.6% y-o-y in November<\/a> and an IMF review of our USD 3 bn loan program looms near. <\/p>\n

Check out our full calendar on the web<\/a><\/strong> for a comprehensive listing of upcoming news events, national holidays and news triggers.<\/p>\n

YOUR MOST CLICKED LINKS-<\/strong><\/p>\n