Back to the complete issue
Thursday, 3 June 2021

THIS MORNING: It’s PMI day; Yalla, Bibi.

Good morning, and a very happy Thursday to our readers: We have a packed issue to close out the week this morning, so let’s get to it …

It’s PMI day: May’s purchasing managers’ index figures for Egypt, Saudi Arabia and the UAE land this morning at 6:15 CLT. The survey claims Egypt’s non-oil private sector continued to face uncertainty in April, with declines in demand, production and employment keeping activity in contraction for a fifth straight month.

Other key indicators to keep an eye out for in coming weeks:

  • Foreign reserves figures for May will be out early next week.
  • May inflation data will be released next week.
  • Interest rates: The Central Bank of Egypt will meet Thursday, 17 June to review rates.

THE BIG STORY INTERNATIONALLY THIS MORNING- The end is almost certainly nigh for Bibi: Benjamin Netanyahu’s 12-years at the helm of the Israel government could be over as a loose coalition of opponents agreed to form a coalition last night that would remove him from power. Liberal opposition leader Yair Lapid told President Reuven Rivlin that he had the numbers to finally form a government following four indecisive elections, paving the way for a parliamentary vote next week.

Who would replace him and what would this mean for Egypt? Lapid would share the prime ministership with his main partner, the far-right ultranationalist leader Naftali Bennett, who would take the position for the first two years before handing it over to Lapid. The coalition itself is a motley crew of liberals, Islamists and right-wing settlers: a mix of opposing parties that makes predicting a policy direction at this stage almost impossible.

Plus, this thing isn’t quite over yet: With the coalition having a tiny parliamentary majority, Netanyahu still has a hope of thwarting his ouster, likely appealing to Bennett’s far-right Yamina party to vote against it, which would send the country into a fifth election in two years.

This is front page news everywhere this morning: From the New York Times and the AP to the Wall Street Journal and Reuters.

***CATCH UP QUICK with the top stories from yesterday’s edition of EnterprisePM:

  • Colliers international is now more hopeful about the Red Sea’s tourism prospects for 2021: The real estate services company now expects full-year hotel occupancy rates in Sharm El Sheikh to reach 42%, up from 81% in 2020, while hotels in Hurghada are expected to see 46% occupancy, nearly double last year’s rate
  • A new basket of structural reforms are in the pipeline: Priority industries include “tech-intensive manufacturing,” agriculture, and communications and IT, as well as financial inclusion, agriculture, and vocational education.
  • Egypt is expected to (almost) match its pre-pandemic growth level in this final quarter of the state’s current fiscal year: The economy is penciled in to grow 5.2-5.5% this quarter, having grown at a 2.9% clip in 3Q2020-2021 and 2% the previous quarter.

CIRCLE YOUR CALENDAR-

The FIG World Challenge Cup in Artistic Gymnastics for men and women will kick off in Egypt on Thursday and run until Sunday.

The British Egyptian Business Association will hold a virtual conversation with Oil Minister Tarek El Molla on 7 June to discuss the sector’s achievements. You can register through this link.

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

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.