{"id":618129,"date":"2024-04-03T00:00:00","date_gmt":"2024-04-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/03\/president-el-sisi-is-sworn-in-for-a-third-term\/"},"modified":"2024-04-03T00:00:00","modified_gmt":"2024-04-03T00:00:00","slug":"president-el-sisi-is-sworn-in-for-a-third-term","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/03\/president-el-sisi-is-sworn-in-for-a-third-term\/","title":{"rendered":"President El Sisi is sworn in for a third term"},"content":{"rendered":"

Good morning, friends. <\/strong>It\u2019s an unusually quiet morning with the new cycle dominated by one story \u2014- President Abdel Fattah El Sisi\u2019s inauguration and policy program he outlined in his inauguration speech through the end of his term in 2030.<\/p>\n

The big theme: We\u2019re in a \u201crace against time\u201d <\/strong>to move the needle on development, El Sisi said, promising that his administration would shore up revenues flowing into the treasury while rationalizing public spending. Becoming a regional hub for energy, trade, and transport <\/strong>centered around the Suez Canal is a key priority, he said, building on themes his administration developed in his most recent term. <\/p>\n

There\u2019s still no sign of a cabinet shuffle<\/strong>, but that could come any day now. Mostafa Bakry, the well-connected MP and journalist, said on X last night<\/a> that cabinet will gather today for its weekly meeting. He expects the ministers to offer their resignation, allowing El Sisi to appoint a new government.<\/p>\n

Sound smart: <\/strong>Freshly inaugurated presidents (returning or new in office) must under Article 146 of the Constitution appoint a prime minister to \u201cform the government and present his program to the House of Representatives.\u201d If the House doesn\u2019t give the government a majority vote of confidence within 30 days, the president appoints a PM based on a nomination from whoever holds a plurality of seats in the House. El Sisi could also use Article 147 to ask Prime Minister Moustafa Madbouly to continue to serve and ask him to engage in a more modest shuffle of ministers.<\/p>\n

QUESTION OF THE MORNING- When is Eid? <\/strong>Eid Al Fitr is likely to begin on Wednesday, 10 April and last through Friday, 12 April, the domestic press suggests, citing forecasts<\/a>. Dar Al Ifta will hold its traditional crescent sighting next Monday to determine if the feast begins next Tuesday or Wednesday. <\/p>\n

Over in the GCC: <\/strong>Saudi has declared separate holidays for banks and capital markets (they\u2019re off all next week) and for the private sector (off Tuesday through Friday). In the UAE, the eid starts on Monday for the private sector and businesses are due to reopen their doors on 3 Shawwal, whatever day that winds up being on the Gregorian calendar. <\/p>\n

It would be fantastic if officials could give us the same clarity <\/strong>to allow businesses to plan.<\/p>\n

SIGN OF THE TIMES- In the latest sign that the float of the EGP is working, banks are <\/strong>chewing their way through the backlog. <\/strong>\u201cWe processed thousands of transactions in the days immediately after Egypt adopted a flexible exchange rate,\u201d our friend HSBC Egypt CEO Todd Wilcox told us. That\u2019s the result of good FX availability \u201creflecting both healthy interbank trading activity and strong investor inflows,\u201d<\/strong> he said. \u201cHaving our dedicated Center of Excellence for Trade at the HSBC Cairo Global Service Center was a real advantage in ramping up processing volumes and speeds and ensuring that clients\u2019 cash management needs, supply chain, and risk-mitigation requirements were met as market conditions changed.\u201d<\/p>\n

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** DID YOU KNOW that we now cover <\/strong>Saudi Arabia<\/a><\/strong> and the <\/strong>UAE<\/a><\/strong>?<\/strong><\/p>\n

** Were you forwarded this email?<\/strong><\/a><\/strong>Tap or click here<\/a> to get your own copy delivered every weekday before 7am Cairo time \u2014 without charge. <\/p>\n

HAPPENING TODAY- <\/p>\n

<\/a> Private sector health check incoming<\/strong>: <\/strong>S&P Global will publish Egypt\u2019s PMI figures for March shortly after we hit send this morning. All eyes will beon the gauge to see the effect of the float on the growth \u2014 or lack thereof \u2014 of the country\u2019s non-oil private sector and business confidence. <\/p>\n

Could we finally buck the trend? <\/strong>After having been in contraction for 39 straight months and falling to an 11-month low last month<\/a> on the back of Red Sea disruptions and high inflation, there is reasonable hope that the end of the FX shortage, death of the parallel market, and clearing of port backlogs \u2014 all stemming from the float of the EGP \u2014 may put the private sector on a new trajectory.<\/p>\n

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** <\/strong>So, when do we eat?<\/strong> Maghrib prayers are at 6:15 pm in the capital city, and you\u2019ll have until 4:12 am tomorrow to hydrate and caffeinate ahead of fajr.<\/p>\n

<\/a>WEATHER- <\/strong>It\u2019s another warm day in Cairo, with a high of 30\u00b0C and a low of 18\u00b0C, according to our favorite weather app.<\/p>\n

It\u2019s <\/strong>cooler <\/strong>in Alexandria<\/strong>, with a high of 24\u00b0C and a low of 15\u00b0C.<\/p>\n

DATA POINT-<\/p>\n

<\/a> Tourist arrivals were up 4% y-o-y in 1Q <\/strong>202<\/strong>4 to 3.7 mn<\/strong>, but arrivals to Sharm El Sheikh were down 20% y-o-y in the same period, Asharq Business<\/a> reports, citing an unnamed government official. Egypt initially wanted to welcome 18 mn tourists this year<\/a> but that target is looking increasingly difficult due to the geopolitical tensions in the region, Tourism Minister Ahmed Issa said in February<\/a>.<\/p>\n

Remember:<\/strong> Egypt received a record<\/a> 14.9 mn tourists in 2023 \u2014 up 27% y-o-y and in line with the state\u2019s target<\/a> to reel in 15 mn tourists during the year \u2014 despite the headwinds that the industry has been facing stemming from conflict in the region. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> Visa launches new AI-powered risk management solutions<\/strong>: <\/strong>Our friends at Visa have unveiled three new AI-powered risk and fraud prevention solutions as part of its end-to-end Visa Protect suite, Visa said in a statement (pdf)<\/a>. The solutions, which will roll out to clients later this year, include:<\/p>\n