PM — What makes people snap

Good afternoon, ladies and gents. We’re just about over the midweek hump — and racing towards the upcoming long weekend.

PSA- Banks will be closed next Sunday, 8 January in observance of Coptic Christmas, the Central Bank of Egypt said in a statement today. Prime Minister Moustafa Madbouly had announced the day will be a national holiday yesterday. We expect the EGX to follow suit with its own announcement later today or tomorrow.

THE BIG STORY TODAY

Qatar has its eye on Ramses Hilton: Qatari Al Kuwari Group has submitted an offer to acquire the Ramses Hilton hotel for USD 320 mn, Bloomberg Asharq reports, citing two sources close to the matter. The Arab International Company for Hotels and Tourism, which owns the hotel, is still negotiating with the Qatari group, one of the sources said.

THE BIG STORY ABROAD

It’s another relatively mixed afternoon in the international business press. Picking up where we left off this morning, Ukraine’s deadly strike against Russian troops yesterday is still getting front-page play in CNBC and Reuters, while China getting covid-19 vaccines from the EU as Beijing struggles to contain its outbreak is on the front page of the Financial Times.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• GB Auto approves GB Lease stake sale: GB Auto’s board has approved plans to sell a 45% stake in GB Lease to our friends at Abu Dhabi-based investment firm Chimera Investments for EGP 855 mn.
• The Madbouly government reportedly agreed in December to purchase hedging contracts to guard against volatility in the oil markets.
• Misr Italia Properties has closed its second EGP 986 mn securitized bond issuance, as part of its EGP 2.5 bn securitization program.

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential daily read on what’s happening in business, finance, economics and policy in Egypt and the wider region — is looking for writers, reporters, and editors to help us build new publications. Today, we run three daily publications, five weekly industry verticals, and a monthly newsletter designed to make our readers feel just a bit smarter.

We have tons more in the pipeline — and we want you to join us. We offer the chance to work in a fast-paced newsroom on a broad range of topics and in a variety of formats. Our goal is simple: To create value for our growing community of readers by telling stories that matter.

We're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and ideas moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors, and entrepreneurs.

During the program you will learn:

• The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
• Business and finance for non-finance people: Whether it's industry jargon, key concepts, or simply how to read a balance sheet;
• How to construct an Enterprise story: From idea formulation down to the structure, style, and tone of writing;
• How to develop sources that will give you the key insights needed to tell a complete story;
• How to communicate these stories with the confidence and language of an insider.

Not an internship program — a career: The four-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run in our publications. Those who successfully complete the program will then be offered full-time positions on staff.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

???? CIRCLE YOUR CALENDAR-

The key news triggers as we start a new month:

• December’s Purchasing Managers’ Index for Egypt will land tomorrow.
• Foreign reserves figures for December should be out later this week.
• Inflation figures for December will be released on Tuesday, 10 January.
• The national dialogue will kick off on Saturday, 14 January.
• The government’s fuel pricing committee will meet this month to decide quarterly fuel prices.
• Global movers and shakers will descend on Davos for the World Economic Forum’s annual meetings on 16-20 January.
• The IMF will publish an updated World Economic Outlook towards the end of the month.

The EGX will be trialing an update (pdf) to its trading platform tomorrow and Thursday from 3pm to 4:30pm. The update includes changes to the way stocks’ daily closing price is calculated and approved.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☔ TOMORROW’S WEATHER- Don’t forget your umbrellas, as there is a chance of showers

tomorrow in Cairo. Expect temperatures to hit 20°C tomorrow during the day before falling to 11°C at night, our favorite weather app tells us.

Where are you most likely to find Umm Kulthum nestled between George Michael and Kate Bush? Rolling Stone’s 200 Greatest Singers of All Time. Coming in at number 61, the Egyptian chanteuse is the only Arab listed in the global Who’s Who of vocalists that ranges from smooth operators to raw shouters, from gospel to punk. Rolling Stone praises Umm Kulthum’s “breathtaking emotional range in complex songs that, across theme and wildly-ornamented variations, could easily last an hour, as she worked crowds like a fiery preacher” and counts the likes of Beyonce and Bob Dylan amongst her admirers — not to mention the “incalculable” number of Arab singers.

Kawkab Al Sharq is in good company: Sitting at the top of the list are women singers Aretha Franklin and Whitney Houston.

Virtual people — not employees working virtually — are the new thing in the business world: Companies in China are investing heavily in recruiting virtual employees — “a combination of animation, sound tech and machine learning that create digitized human beings — for various jobs, CNBC reports. These companies are paying as much as USD 14.3k per year for a 3D person, and USD 2.8k for a 2D digitized individual, but incorporating virtual employees is becoming increasingly economical, with costs dropping some 80% y-o-y.

This company-level push towards virtual labor comes as China’s virtual industry is booming: Beijing is looking to grow the virtual industry to become worth more than CNY 50 bn (c.USD 7.3 bn) by 2025, while some industry players speaking to CNBC expect to see the industry growing at a 50% clip over the next three years. According to Bilibili, one of the first video and game streaming applications to adopt virtual employees, “230k virtual anchors started broadcasting on its platform in 2019, and the virtual anchors’ broadcasting time this year surged by about 200% from last year.” Other companies such as Tencent are turning to chatbots to replace human customer support, with positive feedback.

It wasn’t the best year for some of the Arab’s richest: Economic hurdles hitting the region on the back of the global financial crisis has taken its toll on the wealth of the Arab region’s richest families, Forbes Middle East writes. The Sawiris family, which is the region’s wealthiest with a combined net worth of USD 11.2 bn, saw their wealth shed some USD 800 mn from 11 March to 29 December. Lebanon’s Mikati family, which came in second with a combined net worth of USD 5.6 bn, also lost USD 800 mn in the same period. The Mansour family in Egypt was able to maintain its wealth of USD 5.1 bn throughout the challenging year, while Algeria’s Issad Rebrab and family tied for third place with the Mansour family. Lebanon’s Hariri family came in fifth in the region with a combined net worth of USD 4.7 bn. The list of the region’s wealthiest families do not include those in Saudi Arabia after Forbes stopped tracking Saudi bns since 2018.

???? ON THE TUBE TONIGHT-
(all times CLT)

Why Women Kill: Three women, three decades, same house. With a stellar two seasons, this American dark comedy-drama series follows the stories of mystery murders and reveals the events that led to the deaths. The second season follows the same premise as the first, albeit with completely different cast members and storylines: All the murders take place in the same house across three different decades. The individual plots depict the different lifestyles of three couples and how the dynamics of relationships evolve overtime. It also tackles issues such as feminism and sexism, with undertones of women recognizing their self-worth, and taking matters into their own hands to create a life for themselves. We’ve also enjoyed the Egyptian remake of the series, Sittat Bayt Al Maadi, starring Kinda Alloush, Injy El Mokaddem, and Tara Emad.

⚽ Today in the 11th week of the Egyptian Premier League: Ismaily will face the National Bank at 7pm, and Future will play against Smouha at 8pm.

As for the English Premier League: Arsenal, which is currently at the top of the league, will face Newcastle (currently third in the league) tonight at 9:45pm. The Gunners, who are playing host, are hoping to earn the three points to further consolidate their position in the lead ahead of Manchester City — with the current gap being seven points — and secure the league title that has eluded them since 2004. Newcastle is coming into the match as part of their adventure under the Public Investment Fund’s leadership, after the Saudi sovereign wealth fund acquired the club last year, helping the club improve its performance.

Other matches today:

Leicester City v Fulham (9:45pm)

Everton v Brighton (9:45pm)

Man United v Bournemouth (10pm)

Real Madrid will be playing against Cacereno in the 32nd round of the Copa del Rey at 10pm.

???? OUT AND ABOUT-
(all times CLT)

Procession Towards the Unknown is taking over the stage tonight at Cairo Jazz Club in Agouza at 9pm, promising a transcendental experience.

Egyptian band Takht El Sellem is performing tonight at Room Art Space New Cairo at 9pm, bringing you a unique fusion of original tracks in mashup covers.

???? UNDER THE LAMPLIGHT-

Manifest: 7 Steps to Living Your Best Life by Roxie Nafousi: A good read to start the year on a high note. It’s a tale as old as time — we start the new year with what we think is a solid plan to reach specific goals, only to see them fall apart within days, weeks, or months. This book teaches us about the causes of burnout, and how to manage our thoughts, emotions, and feelings. It argues that the energy we choose to project into the world will eventually manifest as our reality — attracting what we think we deserve. Altering our perspectives and approaches to life will allow us to live a better and more rewarding life.

The EGX30 rose 0.7% at today’s close on turnover of EGP 2.21 bn (42.8% above the 90-day average). Foreign investors were net sellers. The index is up 3.2% YTD.

In the green: Madinet Nasr Housing (+5.3%), Palm Hills Development (+4.7%) and Heliopolis Housing (+4.6%).

In the red: Juhayna (-2.0%), Cleopatra Hospitals (-1.9%) and CIRA Education (-1.9%).

OUR FOUNDER OF THE WEEK– Every Tuesday, Founder of the Week looks at how a successful member of Egypt’s startup community got their big break, asks about their experiences running a business, and gets their advice for budding entrepreneurs. Speaking to us this week is Mohamed Hazem (LinkedIn), founder of architecture firm, contractor, and developer Miro Establishments.

My name is Mohamed Hazem, and I graduated from the University of East London. I worked at London-based multinational architectural design firm CZWG for two years while I was still studying. I was very lucky to work closely with the company’s founding director, Piers Gough — you don’t usually get to see the head designer. Then I returned to Egypt and worked on my first project, which was a hotel in Aswan called Hapi Hotel. It’s owned by a friend. He reached out to me with an interesting concept and we renovated it together.

I am the founder of Miro Establishments, the mother company of Miro Architects, Miro Contractors, Miro Developments, and Miro Plus. I’m focused on all of the sister companies and I am also the head designer at Miro Architects.

I believe that architecture is a language. You want to communicate your talent and art — that feeling triggered me to start my own business. Miro Architects, our architectural and design firm, was created out of passion. I felt like I had something to say, and I worked extremely hard until opportunities turned into project after project, and the business took off from there. It’s been stressful, but it always gives me a sense of fulfillment.

Miro Developments and Miro Plus are our latest extensions to the business. Through Miro Developments, we buy land to build residential and commercial spaces fully constructed and designed by the company. Miro Plus is a collaboration brand — we join forces with other brands to create products, like our outdoor furniture line with Arena Martinez, a fashion brand based in Madrid. They supply the fabric and we handle the design and production. The products will be available in our first three stores in Cairo and Sahel very soon.

The best part of my job is designing and seeing my work come to life. Coordination is the most challenging part. There are many aspects that you need to orchestrate to get things right, such as the mechanics, electrical, plumbing, and structural elements of each project. If there is ever a mistake, it’s always the architect’s fault. So it’s a great responsibility and a lot of work goes into perfecting the process.

The three most important KPIs that I look at on a regular basis are the number of clients and projects, the growth and scale of the company, the number of employees we have, and of course our revenue streams.

The scale of our work has evolved greatly since we first started. We started out focusing on smaller projects such as residential units, but we have now expanded our portfolio to include bigger projects as well. However, we make sure that quality is never sacrificed for quantity. Now, I would say that our work has become more urban, with a focus on circulation and human interactions in our design and architecture.

I usually turn to my team when I am facing a difficult problem. I have built a very strong team over the years. Now that we have four different specialties, each company has autonomy over its own perspective, and pitching it to the table has been quite beneficial. I always make it a point to think out loud with my team. That way we can all learn from one another.

If I could give someone starting their own business just one piece of advice, it would be that nothing comes easy. If you want to do something right, you need to understand that success can never be owned — you can only rent it and rent is due everyday. No matter how many roadblocks you encounter along the way, you must persevere and remain mindful of what prompted you to start in the first place.

My company’s short-term growth strategy is centered on retaining our scale. We have been facing some volatility recently as a result of the external economic situation. Many projections showed a slight decline in our graphs, but we opted to continue growing and reaching our full capacity here in Egypt.

In terms of long-term strategy, we already have remote offices in Dubai and London, and we intend to open solid offices in Dubai and Riyadh. We believe that the MENA region will see exponential growth in architecture, design, and construction in the coming years. We are in the process of receiving a USD six-figure funding round from silent investors for Miro Developments and Miro Plus, which we will disclose more about soon.

I don’t believe that I will be exiting any of my companies anytime soon. However, an exit strategy will undoubtedly be in place in 10 to 15 years’ time. I wouldn’t want to be CEO of all my firms at that point. I would like to continue as the head designer at Miro Architects and a shareholder in the other companies.

In the beginning, my family didn’t really understand what I was doing and where I was heading with my concept. However, when things began to fall into place, they were able to understand more. Now, they are very supportive, and they’re a priority in my life — I try to see them at least three to four times a week.

The last great thing I watched was The Mask [laughs], which is one of my all-time favorite movies. I’ve also been listening to a Spotify playlist called Irrational. It’s very relaxing to listen to in the morning and always puts me in a good mood. I’m currently reading Steve Jobs by Walter Isaacson for the second time. It’s very inspirational — I can relate to many of its concepts, and learn from his failures.