Investment

EGP reclaiming its carry trade darling title? The EGP continues to be an appealing carry trade, with USD softness, rising remittance and tourism revenues, and nominal yields all coming together to build a case for the currency, UBS said in a report seen by EnterpriseAM. Emerging market currencies have been on the rise in the first half of the year, yielding higher total returns despite a slight stagnation in July, according to the report.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The EGP offers an attractive nominal yield of 19% annualized over three months, which will maintain its appeal even as the Central Bank of Egypt cuts interest rates and as the US Federal Reserve also pushes forward with its monetary easing, the report highlights. A stable exchange rate makes the currency more appealing as the EGP’s real effective exchange rate will unlikely need adjustments as it remains near its post-devaluation lows, UBS says. “Low volatility in an exchange rate is beneficial for carry trades, as expected risk-adjusted returns look more favorable,” according to the report. ALSO- Geopolitical tensions have relatively eased since the ceasefire agreement between Israel and Hamas earlier this month, the report notes. Meanwhile, the trajectory for Suez Canal revenues remains unclear, after falling sharply in FY 2024-2025.REMEMBER- The IMF has recently upgraded its forecast for Egypt’s GDP growth to 4.5% in FY 2025-2026, with Egypt’s external position holding up strongly against the USD due to increased inflows from remittances and tourism. Inflation is also forecast to slow down to 11.7% next year.Risks still abound: Egypt continues to face external and fiscal deficits as elevated borrowing costs remain a challenge, along with a resource strain caused by pressures on agricultural produce and energy, the report says. In addition, our proximity to geopolitical conflict areas still remains a monitored threat. UBS also notes that “challenges to the positive global market risk sentiment in recent months — for example due to trade tensions or credit quality worries, or an end to the overall carry supportive backdrop … could lead investors to pull funds from Egypt and could negatively impact the EGP.”Appetite for EM currencies and equities is expected to continue growing over the next 12 months, Goldman Sachs said in a recent report, while the IMF expects global economic growth rates to reach 3.2% in 2025, global trade outperforming expectations, and another rate cut from the US Federal Reserve, UBS said.

Kemet Industries and Emirati-Chinese Al Qalaa Red Flag will invest USD 3.5 bn in three “giant industrial projects” in the Sokhna Industrial Zone under an MoU inked between the two, according to a Suez Canal Economic Zone (SCZone) statement. The timeline for the projects was not disclosed.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The projects include a seamless steel pipe factory, which will have a targeted annual production capacity of 250k tons. Output will help supply the country’s wide-ranging infrastructure and urban development projects while reducing the country’s import bill, according to the statement.The second factory will produce car tires and will roll out (excuse the pun) 12-15 mn units a year, which will help bolster the automotive feeder industry and help meet local needs.The third factory will produce fiber optic cables, supporting the local infrastructure and communications sector, according to the statement. The factory will support the country’s digital transformation and move toward better and faster internet.ALSO- Al Ahram Chemicals and Resins will invest USD 10 mn in an industrial complex to produce formaldehyde and its derivatives, according to another SCZone statement. The planned project in Sokhna Industrial Zone will create 150 jobs and have an annual production capacity of 25k tons of formaldehyde and 25k tons of urea-formaldehyde. Production will kick off in early 2027.

It’s the rare CEO that offers to be held publicly accountable — rarer still a sitting minister. But members of our community who followed his career before he entered government service some 15 months ago know that Hassan El Khatib is simply built different. El Khatib appeared on our stage at the EnterpriseAM Egypt Forum in 2024 to give us a sneak peek of an ambitious agenda for change. One year later, he was back to answer questions about how it went and what he’s doing now to make it easier for us all to trade, do business, and invest. In a one-on-one interview, El Khatib explained why he thinks digital transformation is the key to making it easier to do business — and position us as one of the world’s most competitive exporters and a top destination for foreign direct investment.Digital transformation is the essential remedy for the longstanding challenge of convoluted permit processes. The private sector has to deal with some 96 agencies for permits and [registration fees],” El Khatib said. “The vision as I see it today is clear: We do not want the private sector, any company, to deal with 96 agencies. What we would want is for the business community to deal in the short term with five main agencies,” he added. Beyond the Finance Ministry, these agencies are the General Authority for Investment and Freezones (GAFI), the Industrial Development Authority (IDA), the National Telecom Regulatory Authority (NTRA), the Tourism Development Authority (TDA), and the New Urban Community Authority (NUCA).To put the challenge into perspective, Khatib explained how starting a new factory for ready-made garments requires 24 processes, whereas kicking off a new hotel project requires 34 processes, often necessitating multiple payments for the same commercial register.Where are we now on this? The government is executing a dual-track digital strategy, El Khatib said. The short-term goal is to channel dealings through just five key agencies. A temporary unified platform, activated by a Prime Minister directive, was launched in June. This initial platform aggregated and connected 41 agencies, and now offers 389 permits and a total of 460 services online. This digitization process required agencies to meticulously describe each service, detailing the fees and their purpose.Looking ahead, the goal is to move from the temporary platform into a permanent state-of-the-art digital platform, El Khatib said. “I can tell you that we are in the final negotiations, I hope that within a few weeks I sign a directive for it,” he added.No more paying twice for the same stamp: The digitization effort is coupled with a massive, focused effort to reengineer the permits process. The government is currently working with external consultants to study and reengineer processes across 275 activities. This surgical approach aims to eliminate obvious duplication, such as investors having to repeat steps or pay for the same commercial register multiple times.Moving faster will be key: The average time for approvals handled by the Investor Service Center has been drastically reduced from 14 days down to 5.8 days, with the goal to reduce it further to two days by the end of this year, El Khatib said. Additionally, the Sovereign Unit was established to move faster on state assets, deciding which companies move to the divestiture unit or the wealth fund to maximize returns. The government is piloting this holistic, ecosystem-based approach in sectors like Tourism, covering the entire investor experience from the airport and transportation to utility services.Trade and investment are now bound together: Egypt now aims to balance FDI and trade relationships. While historically large trading partners are in China and Asia, the focus is now on strengthening and diversifying these strategic ties. One example for this is what El khatib described as a "win-win proposition" with the EU, pushing simultaneously for trade facilitation and investment agreements. This is made possible by Egypt’s competitive advantage in energy prices compared to Europe’s — the continent's energy rates are six times what the US pays, making Egypt an attractive destination, El Khatib explained. The same trade-investment interplay applies to collaboration with China, where manufacturing localization is key.Our exports are growing, and there’s room for more: The Minister noted that while a 20% increase in FDI — around USD 14 bn — is achievable, he is unhappy with 25% annual export growth, aspiring instead to see it grow two, three, or four times more within three years.Four sectors were identified as “ready for promotion” and “obvious winners” as part of an FDI strategy delivered by the World Bank in mid-December. Here’s what the minister said about some of these sectors:#1- Textiles: The textiles sector in Egypt is growing as an attractive sector for foreign investors. For example, the cost of production in Egypt is estimated to be literally 20% of the cost in Turkey. While current exports are around USD 3 bn, capturing a larger share is an “easy target,” with the government aiming for USD 12 bn in this sector alone, El Khatib noted.#2- Intermediate industries: While Egypt does not currently have a large automotive industry, intermediate industries like automotive business are seeing significant movement. Four companies have already signed up for this initiative, which is expected to scale up production significantly, and the government is currently courting another global player, the minister added.#3- Tourism: The government’s approach towards tourism now is moving away from simple land approvals and focusing instead on setting concrete targets for new hotels and rooms by 2030, and developing the entire ecosystem planning, including the airport, transportation, and utility services, El Khatib explained.Tap or click here to read the panel’s full transcript.

The government is doubling down on its privatization drive — with a wider scope and new approach, as the Madbouly government plans to expand its privatization program to include 50 state-owned companies spanning 14 economic sectors, up from 35 currently in focus, two government sources told EnterpriseAM. The new methodology aims to broaden private-sector capital participation, rather than rely solely on strategic asset sales.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)REMEMBER- The Sovereign Fund of Egypt embarked on a comprehensive review of the privatization program earlier this year; a government source told us at the time the program could be expanded to include as many as 60 companies. The move followed a plan by the government to transfer the administration of all state-owned companies to the fund as part of a strategy to maximize their returns.The new additions to the list will target key sectors like energy, telecoms, ins., and airports through a mix of EGX listings and competitive tenders. These will be followed by offerings in fertilizers, sugar, and petrochemicals. The updated plan also introduces a digital promotion platform for marketing future offerings once the framework is finalized.The revised approach — hinted at by government officials in August — will favor selling smaller minority stakes on the EGX over one-off strategic sales. Going forward under the soon-to-be-revised state ownership policy, only a handful of strategic sales will continue under a phased rollout.Sales via the EGX should be helped by a “major package” of stock market incentives expected to be released next month, including measures for the Finance Ministry to shoulder part of investors’ costs, one source told EnterpriseAM. The move follows ongoing efforts to exempt IPO proceeds from taxes and expand breaks for investment funds to improve EGX liquidity.The privatization program will start picking up pace again next month with the sale of a stake in the Gabal El Zeit wind power plant — one of the flagship projects under the program — we were told. Procedures are already underway to list 30–40% of the farm by year-end, in a transaction expected to raise up to USD 400 mn, two government sources told us earlier this month.Policymakers hope the fresh push could pave the way for the IMF’s long-awaited fifth and sixth program reviews. The timing of the renewed drive and ongoing talks with the Fund suggest the government is positioning the updated State Ownership Policy as a key anchor for structural reform commitments.IN CONTEXT- The government brought to light the state ownership policy over three years ago, and while some sales have gone through, progress on the privatization front has been less than ideal and remains a constant sticking point during discussions with the IMF over our loan program. The state raised 48% of its USD 12.2 bn privatization target for March 2022-July 2025. During the period, the state sold stakes in 19 companies through direct stake sales and IPOs, raising some USD 5.9 bn.

Patrick Fitzpatrick [P.F]: Ladies and gentlemen, if you could please filter into the room. It is time for our "one year later" interview with His Excellency Hassan El Khatib, the Minister of Investment and Foreign Trade of Egypt. Minister, it has been 12 months since you were last on this stage. You appeared at that time very much immediately after your appointment. You were still figuring things out, and yet you arrived with a clear plan and, if you'll pardon my language, a no-bullshit approach to the interview. You spoke candidly, you spoke freely, and you did so again when we chatted last Thursday to prepare for this. I would like to start by asking you: 12 months later, what have you learned that you didn't know a year ago on our stage?Hassan El Khatib [H.K]: Still... Good morning, I guess.P.F: Still good morning. It's been a long day for you, I know. And we're incredibly grateful that you came.H.K: So good morning. It's a pleasure to be here. I cannot imagine it's a year already. To be honest, it feels like 4 years, but anyway, it passed very, very quickly. No, I think I would say, reflecting on a year, I don't remember what I said, but I will say what I believe. I think walking into the job, I knew what needed to happen. I think…I still have this small sheet of paper that I started with as my target, as my objective, which I can repeat. I don't know whether it will tally with what I said last year or not.What Egypt needs is a business environment that is conducive for the private sector to lead the economic narrative for Egypt.Through clear, predictable, transparent policies. And I think what I said, and I've been saying this for many years prior to taking the post, is that we need to talk about a proper monetary policy — which we have; it's working, numbers are telling — a fiscal policy, trade policy, role of the state policy. And we need to take more …These are the four policies that we started with, but today we talk about land allocation policy, the need for an energy policy, and of course we need to talk about national projects for 10 years or 20 years for the Ministry of Investment and other ministries to be able to predict.The challenges that I probably outlined earlier are more clear in my mind.I know the situation much better, probably than what I presented in October. But I can tell you today that I see a path where I want to see Egypt as one of the most competitive destinations to attract FDI, for investors to come invest for the next 10-20 years. And that’s probably what we will cover today. P.F: When we spoke on Thursday, you said that the way forward is rooted in digital transformation. It sort of struck me that a year ago you had the plan and the ideas. The biggest difference I see in you, as somebody who writes about you most days, is that you figured out how these pieces of the pipe fit together, how the puzzle fits together. And you think now the answer is digital. How does that work?H.K: That's one of the conclusions after 15 months in the job. Let's try to look at one of the challenges that we outlined last year. I think we talked about a target of an effective tax rate, that we have a parallel system of fees and levies that are put. At the time I mentioned probably 60 agencies. I think today I can exactly tell you how many agencies, and probably a number much bigger which I'm not going to reveal today.P.F: Okay.H.K: But there are 96 agencies. P.F: 96?H.K: Yes. So the business community who are here today are subjected to many of those fees and levies on a daily basis. And, I think, the contemplated vision as I see it today is clear: We do not want the private sector — any company in Egypt — to deal with 96 agencies. What we would want is for the business community to deal — in the short term — with five agencies. Of course, the Ministry of Finance is the right agency to that effect. But I think GAFI for that matter, the General Authority for Investment; when we talk industry, the Industrial Development Authority; when we talk tourism, Tourism Development Authority; and of course NUCA [The New Urban Communities Authority]; and of course the telecom sector. So what we would want to see is that we want to channel the large number of fees and levies that are put by these tens of agencies through these five agencies. But this is in the short term.The longer-term vision is that all of these will be put on a digital platform. And the journey is not something that I'm promising; we started. When I realized this, and we had the meeting last year in October, I realized this is tough to deal with too many of these agencies. And again, we need to understand the logic: They depend on these fees and levies for their budgets. And that's a reality. But what we decided to do is that I decided to activate an approval or at least a directive by the prime minister that was there almost for two years, where we wanted to have what we call a permits platform. So in November-December last year, I took that directive from the president. I told him I would want to take this into action. And this is what we call the temporary permits platform, which we launched in June.P.F: So the platform is temporary, not a platform for temporary permits, but a temporary platform? H.K: This is important because I have to say temporary because it's not the state-of-the-art platform. This is not what we aspire to. This is an aggregation; it’s a unifying platform that connects the Industrial Development Authority, the Tourism Development Authority through URL.This is not the state-of-the-art of what we want, but we wanted to go through connecting 41 agencies, offering 389 permits online. That in itself is a transformation. The discussions with these agencies is that for each service, you need to have a description: What is the service? What are the fees and for what? This is a process that needs to happen if you want to include everything on the fully digitized platform which we can talk about now. But since I've taken that decision in June, we started with 389 permits fully digitized. Today, we add more services every day. Today we offer 460 services on that platform.P.F: Okay.H.K: Similarly, if we continue with that theme — just to give the audience the direction — I started thinking, "Okay, but this is temporary. We need to do something different." So I got another directive from the president and the prime minister to do a state-of-the-art digital platform for Egypt that can take everything from establishing a company, the permits, and ongoing needs of the businesses: approvals and other things. So we have the full fledged scope of this. We have this mandate. What I can tell you is that we are in the final negotiations. I hope within three to four weeks I sign this. But this is not as easy.P.F: Okay.H.K: The scope is actually threefold. One, you need to have a digital platform that is state-of-the-art, that connects seamlessly with the different agencies of the state. But if you code — and I have my friends here from the IT sector that would know this well—if you code the existing processes, you've done nothing. If you code today the journey of any of you as an investor that wants to establish a business, then we've done no transformation.P.F: Nothing has changed.H.K: So we engaged early on in the year, a consultant on a sample [of] four activities. And I can quote, these are the two cases that are on top of my mind now: the journey of an investor today to do a factory for a ready-made garment. The processes he or she has to go through are 24 processes. And in many of which, you will have to pay for a commercial register, the same [register] for multiple times. If you want to establish a hotel today in Egypt, it has 34 processes, and the exact number of commercial registers that you have to pay and get through that process is actually 22. It's the same commercial register.But the beauty about that exercise, and that's what we directed the consultant, is we need to ask the question: Why do we need this process in the first place? It's very obvious. If you have a digital commercial register, you don't have to repeat it. You don't have to pay for it several times. And in the two cases, the irony is we ended up with nine processes.Nine. That's what you need to code. So the question became, okay, how many activities do we need to model or we need to study and do the re-engineering of these processes? It’s 275 activities. And that's why the scope that I should sign hopefully in three to four weeks is on the coding side and also in the re-engineering of the journey of an investor in each and every activity. This is really due diligence. This is deep due diligence.And the third element that is very important on this platform is that it has to include all the fees and levies that are put by the 96 agencies. This is transformational. This will change the way we do business. This will enhance our competitiveness in the Doing Business report, which is now Business Ready, because the whole world is shifting digitally. And we cannot move one step at a time with where we are. The leap will have to happen through digital transformation.P.F: I'd like to shift now to FDI. You are chasing more inward investment in a shrinking global market. You've been to the Czech Republic, China, Singapore, Japan, Germany, Russia, India, Spain — and that's just in the last few months. Where is the most economically significant interest coming from and what is the pitch right now?H.K: I think I will answer in a different way. I would want to balance my relationships. I want to balance my FDI, my trade relationships. And you'll be surprised that I will link it to trade, because I think the whole world today is linking trade and investments. And that's how I want to shape the answer to that question. Historically, our largest trading partners are Europe, the Middle East, and of course, China and Asia. I would want to maintain the same balance. I do not want to see concentration in a different direction. In 10 days, we're going to the EU; we have the EU-Egypt summit. And my contemplated vision of the relationship, we have a trade deficit with Europe. It's shrinking. That's important. It's going down. Today, it's around $8 billion. It used to be much higher than this.But what I would want to talk to our partners in Europe about is that it's a win-win proposition today. We would want to equalize the trade, not through tariffs but through investments. And that's why one of the things that are today that are combined in trade is that you have to have these trade facilitation and investment facilitation agreements, what we call SIFA: Sustainable Investment Framework Agreement. So I got the approval from the cabinet that we take the relationship with Europe to a different level. And I spoke to the trade commissioner on my last trip to Brussels, and I think this will be hopefully announced and we will put the guidelines. This could be a process of two years. But the whole idea about this is that, simply you put a path for transparency, for the sharing of information that links trade and investments. What I would want to see is I would want this comfort for the investors in Europe to come and localize. I think that relationship is an example of what we want to see. Europe needs Egypt as much as we need their investments. Really. Europe today, [their] cost of production is, in my view, in my humble opinion, I’m sorry… very expensive. Cost of labor, cost of energy today they are paying literally four times what the US is paying for energy. We are across from Europe. If you have a ro-ro line today, in less than two days, you are in Europe. We have the right infrastructure to bring these investments into Egypt and to localize. Cost of labor is very attractive. You have the engineering talents. You have the connectivity between the Red Sea and the Mediterranean; it's actually working. So what we need is these investments, and they need comfort. So these are the dialogues that I would want to have.Similarly, when I visited China, it's the same. We cannot continue. The China trade deficit is $15 billion. And by the way, China's trade relationship with the rest of the world is always in their favor. That's why you see these tariffs that are coming up. We have to acknowledge, and again I do not want to generalize, China built capacities that are today way above the world's needs. I can give you two sectors. Just solar panels. Today, China has production capability... the output can get to 1,000 gigawatts per year. 1,000 gigawatts per year. The whole world's new consumption installed last year was 500 to 600. They actually are half of this. So they have this abundance. So, whether you call this subsidy… there is an embedded subsidy in that. There is again in many cases dumping practices. So, we need to be very careful about this. And that's the message. I told the Chinese: if you need to come to Egypt, we're open, but you need to deepen your local manufacturing. Because why? Europe is telling us very clearly, "We are not going to allow anyone to use you as a backdoor to Europe." So, it's getting very complicated. But what I can tell you is that I'm having these very open, honest discussions with everyone. We need to make sure that we have equitable trade balances — trade relationships — through investments and trade. That's how I see it. So I would want to balance the relationship, but we're seeing interest from these three continents as we speak today.P.F: So we are open to trade and investment at the same time as other people who are closing. You spoke last year about five sectors where we would "determine where to play and how to win." And I love that line — where to play and how to win. You've since identified five broad priorities, but when we were talking on Thursday, you broke that down into "ready to promote" vs. "ambitious bets." What does the sectoral priority list look like? Can you unpack that for us, this "ready to promote" vs. "ambitious bets"?H.K: What I probably mentioned to you is my early contemplations of what I see in the market. What we’ve done is that we had the World Bank working with us to deliver an FDI strategy, which was delivered towards mid-December, and we've been working with them to finalize the document. The document talks about these "ready to promote" sectors and, of course, the "ambitious sectors." I don't have the sectors on top of my head, but you have the list I gave you. But you can quiz me on this: but it's tourism, it’s IT, it's again intermediate industries, it's agricultural products. These sectors that we can see really a lot of interest [in]. Of course, textiles. On that sector today you have a pipeline of a lot of investors coming and interested in that field. And these sectors today are very obvious winners for Egypt. If you take ready-made garments today, the cost of production in Egypt is literally 20% of that in Turkey. Turkey exports ready-made garments of $30 billion. Our total exports in that field is literally $2 to $3 billion.P.F: $2 to $3.H.K: Again, I put targets like any of you in the private sector. If I want to capture... I think the easy target for us on that sector alone should be $12 to $15 billion, because we're seeing that interest from not only the Turkish companies which are already in Egypt, but you're seeing that from the Chinese and other different countries around the world.The intermediate industries today, despite the fact that we don't have… in terms of the automotive industry, we don’t have a large OEM [Original Equipment Manufacturer]. But in the wire harnessing business, for example, we have the "who's who" of that industry globally already in Egypt. This is a labor-intensive part of the feeder industry and the automotive, and we're seeing more. On the automotive, we're looking into a strategy. So already, on the automotive development program that we revised, we have four companies signing up for that. That will take production much higher than what they are today. And we're still looking for one of those, or a new company to be the large OEM to pull the whole market. Of course, tourism is very clear and obvious. But, again the reality today, the challenge of what we're trying to do today is that we want... on these ready-to-promote sectors — and this is work that’s ongoing. We need to talk concrete numbers. Let's take tourism. What I want in tourism is to have a map for Egypt and you say, "We are [here] today, and we know the numbers, and this is where we want to be in 2030 and, of course, 2040. And these are the locations, these are the new destinations, and these are the rooms that we need.” But not only this. I want to take the land, each piece of land and take the pre-approval for these opportunities. That will cut automatically. So, the investor will come, these projects are approved from [high up] ... of course, you have the infrastructure that is available. You don't have to go and knock the door [of] many agencies for the utilities, the water, the electricity...P.F: It’s on the shelf. You take it off.H.K: Exactly. So, we're starting the pilot that we agreed to do is actually tourism. We agreed about this with the cabinet last week, that we will do this map for tourism, and then we'll start with a new sector. But more importantly, our holistic approach on these sectoral deep dives — which by the way — we want to engage international players. We've done the 13 sectors with the World Bank. Today, I'm asking some of the international IFIs to help us with the deep dive. Tourism is not about hotels only. It's about the ecosystem that connects. It's from the airport, from transportation, utilities, services, and so on. That's what we want to do for each and every sector on these lists.P.F: When we talked last week, you said you would be "unhappy with 25% annual export growth," that you'd like to see it be two, two and a half, three, four times that level within three years. And you used an interesting analogy comparing 2004 to 2008 to today. Can you explain to our guests today how you see getting from 25% growth today to three, four, five times that number three or four years down the road?H.K: You are talking FDI?P.F: FDI and exports together. H.K: So, I do not know if I mentioned this last year but what we want to build — and I talk "we" because the economic team and a wide number of ministers, we talk about this — is that we need to get to growth in GDP that is sustainable and higher. The only plug factor here is the FDI, local investments and foreign direct investments. What we see today is that the historical numbers of FDI range between $8 to $10 billion. That’s the historical. But there is an opportunity for Egypt in this time to attract more.And again, I have to put between brackets: this is not easy. This is challenging because the global FDI numbers are actually in decline for the last couple of years, around 11 to 12% decline. Having said that, and the challenge on this and I will come to the numbers is that we need to be seen as the most competitive destination. It's all about structural reform. Our ability to deliver our structural reform as fast as possible will get us to the numbers. 20-30% increase in our FDI, I think we're already achieving this year. The three-quarters numbers are around $9.8 billion. So I think we will get to $12 billion. From what I see, I was visiting the SCZone over the weekend, and if you look at the investments that are being put over the last three to four years, we're talking almost $10 billion on that area alone. So the reality, there is an influx.But what I would want to see with the proper mapping of these sectors again ... if you take the numbers, dissect them by sector. Tourism, between now and 2030, if we target $30 billion to attract, it's not a big number. If you take this in renewable energy, if you take it sectoral, you can see. Because today the challenge is: Where is the opportunity? The journey of the investor to get a hotel today is a very lengthy process. So that's what we want to change.What we want to see is a hike up in FDI because we deserve it, if we do the accelerated reforms that we're talking about. And that is what will get us to 6 to 7% sustainable growth. This is where eventually... all of what we're talking about is why we do this. Because after 3-4 years of high inflation, the question comes to every individual in Egypt. We work for the people of Egypt. It's inflation. The only thing that will matter at a certain point of time is that they feel the economic results in their pockets, that the pound can buy more; their salaries are increasing. And that's what we want to do. You need to accelerate the growth in GDP — that’s what matters. And what I ask, again the private sector… Salaries are increasing. Most of the industrial manufacturing companies are actually reaching capacity today; they are expanding. So with the very few things that we've done over a year, the whole team, there is a very good momentum. But we need to continue that momentum.P.F: Speaking of momentum, we have three minutes because I’ve made you a hard promise to get you off the stage at 11:30. I'm going to ask you questions in rapid succession. You have one sentence for each. It’s gonna be a challenge for us both. Privatization: where does it stand in one sentence? What can we expect of it this year?H.K: It's still on top of the agenda. It's the one element that we need to go faster. One thing we've done is the SOE [State-Owned Enterprise] unit, which we finalized the law in the summer. We are hiring for it. And why do I talk about this unit, is because this unit is going to be the vetting unit: which companies to move to the divestiture unit, which companies to go to the Sovereign Wealth Fund. The same thesis I gave to the Sovereign Wealth Fund is what I'm upholding: it’s again maximizing the return on these assets for the Egyptian people. It's the future generation fund for Egypt.P.F: One year ago, we had an average customs clearance time of 14 days. You said you wanted to bring it down by half. A few people laughed. It's 5.8 days today. Can you get to two before the end of the year?H.K: Yes, we will get to two days by the end of the year. I know the measures. I think we're on it.P.F: And beyond that?H.K: I'm not going to settle for two days. The target has to be hours. With the risk management system that we're enacting, with the joint work that we're doing, with customs and the Ministry of Finance, the momentum is there.The boldest decisions are already behind us. Today we know about the exact measures that we’re talking about, the electronic bill of lading, what matters today…. When I mentioned this it was important to set a target  for the 27 agencies, this It's not only the work of my ministry; it's the work of 27 agencies. When you abolish holidays... historically, forever we've been taking Friday and Saturday off. Forever we've been working literally less than 2,000 hours. Today we're working 4,000 hours. Friday is still short in the efficiency — but that's historical. But why? I follow every weekend. I follow on these things every weekend. And the issue, when it comes to Friday, is not the government. Actually, when I visited on Saturday, they complained that the private sector companies are not coming. That's the issue. So now we need the private sector.P.F: They don’t want to be there on Fridays or Saturdays.H.K: Yes. P.F: All right. It's on us. Minister, will you come back next year and do this again?H.K: Sure. If you invite me and if I'm still around.P.F: We will invite you. Minister, thank you so much for your time today.H.K: A pleasure. Thank you very much. 

💰 The beginning of the end for the gold rush? After a 52% surge that saw gold reach an all-time high of USD 4.4k per ounce, the precious metal is experiencing a sharp correction that some analysts believe marks the beginning of a more significant downturn. As of publication, gold is trading at just over USD 4k per ounce, down 8% from its peak last week. The sell-off has been dramatic, with one session last week seeing gold tumble more than 5% in what marked the steepest percentage decline since April 2013.A “mini-bust” on the horizon? John Higgins, the chief markets economist at Capital Economics, was cited as saying that the recent pullback is the start of a downward trend that could erase a significant portion of this year’s gains, predicting that the price of gold will fall to USD 3.5k per ounce by the end of 2026 — a decline of more about 13 % from current levels.The macroeconomic firm’s bearish outlook is the result of four main concerns: #1- The rally has run too far. First, while gold has pulled back from its peak, it remains up 50% YTD, and even a drop to USD 3.5k would still represent a 30% gain since the beginning of 2025. This suggests that the metal may have gotten ahead of itself.#2- Central bank appetite may wane. Central bank buying has been a major driver of gold’s rally in recent years, with the share of gold in total reserves surpassing 20%. However, Capital Economics doesn’t expect reserves to continue rising to the levels seen during the high-inflation of the 1980s.#3- Cooling demand from China. China’s roaring stock market could “reduce the allure” of gold among investors in the country, with asset managers potentially hesitant to buy more gold if it continues to underperform.#4- The “debasement trade” may be overblown. Higgins doubts that concerns about currency debasement are driving as much gold demand as some believe. The USD has remained stable against other currencies in recent months, while the 10-year US Treasury has rallied, suggesting investors haven’t lost confidence in USD-denominated assets. Instead, Higgins suggests the surge from early August to mid-October was “largely driven by FOMO.”What’s driving the current sell-off? Chinese and US officials hashed out a framework for a trade agreement over the weekend that would pause steeper US tariffs and Chinese export controls on rare-earths, with US President Donald Trump and Chinese President Xi Jinping set to meet. This progress in trade talks is reducing demand for safe-haven assets like gold. Kelvin Wong, senior market analyst at Oanda, explained, “The fuel for this short-term correction in gold is a readjustment of safe-haven instrument towards more response instrument like global equities due to trade optimism.”Analysts also say the sell-off followed weeks of heavy buying that pushed gold to overheated levels, prompting investors to lock in gains. The USD has strengthened against rival currencies, making gold more expensive for holders of other currencies. The end of the Diwali festival in India, the world’s second-largest gold consumer, has reduced physical demand.But the bulls aren’t giving up yet: Despite the bearish short-term outlook from some quarters, not all analysts are turning their backs on gold. Wong noted that while the metal faces near-term downside pressure from position adjustments by short-term traders, “the fundamentals are still bullish for gold.” ING and ANZ analysts echoed this sentiment, suggesting that “the recent declines may provide [a window] for central banks to ramp up purchases,” with ANZ predicting that the bullion will reach USD 4.6k per ounce by June 2026.

Local players have set up an alliance — dubbed the Arab Alliance for Industrial Development — to expand across the Arab world, alliance head Mohamed El Bahy told EnterpriseAM. The alliance aims to implement over USD 1 tn worth of investments in the near future. As things stand: The alliance is expected to finalize its official registration this week. Once that step is completed, the alliance will start setting up investment arms in four Arab countries, El Bahy said.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)A look inside the alliance: The alliance includes some industry heavyweights, like Emdad Steel Industries, Elshark, Kandil Steel, Al Ain Salines, Egypt Casting, Petra Real Estate, and Premium Healthcare Group.Phase 1.0: The alliance has already raised USD 250 mn, which will help it expand across the Libyan, Iraqi, and Omani markets, and contribute to reconstruction efforts in Gaza. The alliance will target the Syrian and Lebanese markets at a later stage. Alliance companies are no strangers to Arab markets — they currently hold USD 550 bn in investments in the Iraqi market, as well as a “huge volume” of investments in the Libyan market, El Bahy said. So why join the alliance? The alliance will set up regional offices, which will facilitate market entry and exit, reduce the time required for security approvals in certain countries, and streamline official procedures. It will also promote Egyptian products, manage export transactions, handle customs clearance, and process financial transfers through official channels.That’s not all: The alliance will set up an online platform that will serve as a permanent virtual exhibition, showcasing Egyptian products and highlighting available contracting prospects.It is currently in discussions with European banks and institutions to secure funding for various development projects. It aims to utilize this FX capital to accelerate project implementation.Local companies are working to increase their reach across Africa as well: Earlier this year, Al Borsa reported that six local companies formed the Egyptian Industrial Export Hub to expand into Kenya, Nigeria, Ghana.

Good morning, friends and a happy Tuesday to you all. It’s another busy morning here in Egypt, with debt and energy news leading the news well — our maiden EGP sukuk issuance got pushed back again and QatarEnergy snapped up 40% of the Med’s North Rafah offshore gas concession. BEFORE WE DIVE IN- Who might be interested in acquiring HSBC Egypt’s retail business — if, indeed, it’s for sale? The parlour game has begun in Cairo banking circles and so, too, has the posturing. Case in point: Al Mal reported yesterday that Emirates NBD is interested, quoting an unnamed source as saying the UAE-based lender was running “preliminary studies on the portfolio.”That’s premature: HSBC isn’t yet accepting expressions of interest and won’t unless the review process it announced last week points in that direction. As it is, the review is just getting underway and the bank hasn’t made any decisions.BACKGROUND- It’s still business-as-usual at HSBC Egypt after HSBC Group said last Thursday that it was putting the retail business here in review. That’s C-suite speak for “we’re looking at options,” which range from solicit offers for the business as part of a potential sale process to keep it as it is. HSBC hasn’t said how long the review would take and there are no changes for retail customers now.HSBC Egypt, meanwhile, is there to stay — along with its commercial and institutional banking units. “Egypt is an important market for HSBC and has strong potential for growth. HSBC will continue to focus on driving two-way trade and investment flows to support multinational clients operating in Egypt and enable domestic wholesale clients to achieve their international ambitions,” the bank said last Thursday.So who might be interested in HSBC Egypt’s retail portfolio? We’d absolutely expect Emirates NBD to be interested — a smart institution that is pushing now into India with a high-profile acquisition. We believe HSBC Egypt’s retail portfolio is disproportionately weighted toward high-value clients attracted to its Premier proposition. We would be surprised if market heavyweight CIB isn’t interested in having a look, as would QNB Al Ahly — if, indeed, HSBC Group decides the retail portfolio is up for grabs.PSA- We’re less than five days away from the Grand Egyptian Museum’s grand opening, with festivities kicking off on Saturday, 1 November at 5pm. Want to visit the museum yourself? The museum will be officially open to the public starting Tuesday, 4 November. You can purchase your admission and guided tour ticket through the museum’s website. Want a look behind the curtains? EnterpriseAM has you covered. The first of four weekly special issues about the GEM will land in your inbox this Wednesday, charting the museum’s journey from the launch of a record-breaking international design competition to the final stages of completion and capturing the challenges, milestones, and unwavering ambition that brought it to life.WEATHER- It’s another sunny day in Cairo, with a high of 29°C and a low of 20°C, according to our favorite weather app.It’s more or less the same in Alexandria, with a high of 29°C and a low of 19°C.WATCH THIS SPACE- The government is mulling revising the State Ownership Policy — the updated version of the policy will prioritize private sector investments in state-owned companies over asset sales in a move that is expected to increase returns from state-owned assets. This came during a meeting of the committee in charge of the policy, headed by Prime Minister Moustafa Madbouly. What we can expect: The revised policy will focus on placing restrictions on the establishment of new state-owned enterprises, setting clear boundaries between the state’s roles as owner, regulator, and policymaker, enhancing state-owned companies' boards' independence, diversity, and quality, and finally developing a clear dividend distribution policy to improve public asset management efficiency.IN CONTEXT- The government brought to light the State Ownership Policy over three years ago and while some sales did go through, progress on the privatization front has been less than ideal and a constant sticking point during discussions with the IMF over our loan program. The state raised 48% of its USD 12.2 bn privatization target for March 2022-July 2025. During the period, the state sold stakes in 19 companies through direct stake sales and IPOs, raising some USD 5.9 bn.ENTERPRISEAM HAD THE STORY FIRST- Sources told us in August that the state had become more interested in offering minority stakes in state-owned companies on the EGX than in selling stakes to strategic investors. At the time we were told that the state is putting the final touches on listing 10-40% stakes in a number of companies on EGX. HAPPENING TODAY-#1- Hungry for insights from the cabinet’s economic team? BEBA will host Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib today for a working early dinner at Sheraton Cairo Hotel. The conversation with the two senior cabinet members will be followed by a Q&A session.#2- The US Federal Reserve is expected to cut interest rates for the second time after its September cut at its Federal Open Market Committee today. Softer US inflation figures that came out last week put the Fed on course to make another small 25 basis point cut, analysts say.Speaking of the Fed, Treasury Secretary Scott Bessent said the Fed’s next heir will likely be named by the end of the year, after whittling down the shortlist of candidates to just five, CNBC reports. The names potentially replacing current Fed chair Jerome Powell are: Fed Governors Christopher Waller and Michelle Bowman, National Economic Council Director Kevin Hassett, former Fed Governor Kevin Warsh, and BlackRock executive Rick Rieder.HAPPENING TOMORROW- The Industry Ministry will start offering up 1.1k industrial land plots across 16 governorates tomorrow on the Made in Egypt platform, according to a statement from the ministry. The plots — ranging from 190k-500k sqm — are designated for projects in the food, engineering, chemical, pharma, textile, and building materials sectors. Investors will have until 6 November to apply.SUKUK WATCH- The yield to maturity on our sovereign sukuk rose to 6.32% last Friday, up from 6.25% the week before, according to the Egyptian Financial Company for Sovereign Taskeek’s weekly report (pdf). Egyptian sovereign sukuk prices fell to USD 101.47, compared to USD 101.58 a week earlier. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here CIRCLE YOUR CALENDAR- #1- Egypt and the UK will hold the Egypt-UK Investment Conference on 8 December to showcase Egypt’s economic reforms and explore new prospects for bilateral cooperation, according to an Investment Ministry statement. The event will bring together officials and investors from both countries to discuss cooperation in sectors like renewable energy, fintech, trade, and agriculture.#2- The Digital Payments and Financial Inclusion Exhibition and Forum (PAFIX 2025) will run from 16-19 November at the Egypt International Exhibition Center in New Cairo. The event will gather over 1k organizations and 200 exhibitors from Egypt, the Middle East, and Africa to discuss how emerging technologies, especially AI, are transforming financial services.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.** DID YOU KNOW that we cover Saudi Arabia and the UAE?** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.THE BIG STORY ABROAD- It’s a mixed bag in the international business press this morning, though mostly quiet as we await the US Federal Reserve’s interest rate decision tomorrow and Big Tech’s earnings later this week. One story getting attention is Amazon’s plans to cut some 30k corporate jobs, its largest cut yet, slashing around 10% of its corporate workforce. The move comes as the firm looks to cut expenses and trim back its team after an overhiring wave during peak demand in the pandemic. Another reason could potentially be productivity gains from the use of AI which have removed the need for some corporate jobs, and a need for less bureaucracy. (Reuters | Wall Street Journal | CNBC) Also from the world of Big Tech: Qualcomm will start producing semiconductor chips, entering a market that’s already dominated by US chipmaker Nvidia, which also includes players like Advanced Micro Devices. It previously produced chips for wireless connectivity and mobile devices. Its shares jumped 11% on the news. (CNBC | WSJ | Financial Times) Over in Russia, its second-largest oil producer Lukoil is selling its international assets following the sanctions introduced against it by the US last week. (Reuters | FT | Bloomberg) *** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.In today’s issue: We take a look at what manufacturers are doing to prepare for the EU’s incoming Carbon Border Adjustment Mechanism — and what will happen if they don’t.

An Egyptian-Chinese consortium will invest over USD 75 mn across three new textile projects in Qantara West Industrial Zone, according to a statement. The projects, spanning 225k sqm, are expected to generate over USD 100 mn in annual exports and create around 3.6k jobs. The projects include:(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)#1- A USD 29.2 mn home textiles and furnishing project with an annual capacity of 5.6 mn textile pieces and 3k tons of home furnishings. The 75k sqm facility will export its entire output and create 1.2k jobs.#2- A USD 28.2 mn microfiber textiles and blankets factory with an annual production capacity of 21 mn pieces and 8k tons. The 75k sqm facility will export 70% of its output to international markets and is expected to create 1.3k jobs.#3- A USD 17.6 mn electric blankets and polyester textiles factory. The 75k sqm facility will be established by the largest Chinese manufacturer and exporter of electric blankets, as the first of its kind in the Middle East and Africa. It will produce 5.6 mn electric blankets and 3k tons of heating textiles annually, creating 1.2k jobs and exporting 100% of its output.DATA POINT- Qantara West currently hosts 44 projects worth USD 1.2 bn, set to generate over 60.1k jobs.

RENEWABLES- Arab Contractors subsidiary Nahdet Misr plans to build a USD 100 mn waste-to-energy plant in Qalyubia that will generate 62 MW of power per hour, Al Mal reports. About 54 MW will be supplied to the national grid. The facility will process 2k tons of waste daily and is set to be completed within three years in partnership with local and international firms.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)CAPITAL MARKETS- Asset manager Evolve Investment Holding plans to launch four to five new gold investment funds in Egypt in partnership with financial institutions, provided it gets the go-ahead from the Financial Regulatory Authority, CEO Sameh Eltorgoman told Cairo Weekend’s Zeina Soufan (watch, runtime: 15:17). The move comes as demand for gold investment funds “has exceeded expectations,” the CEO said. The company currently manages EGP 3 bn in total assets through its four existing gold investment funds and expects this figure to reach EGP 10 bn by the end of 2026 with the launch of additional funds.EXPANSION- The National Bank of Egypt is looking into expanding its footprint in Saudi Arabia with several more branches to better serve its Saudi and Egyptian customers in the Kingdom, CEO Mohamed El Etreby told Asharq Business (watch, runtime: 1:08). REMEMBER- The move follows the inauguration of the state-owned lender’s first branch in Riyadh earlier this month after obtaining the Saudi Central Bank’s approval to operate in the kingdom.REAL ESTATE- #1- Madinet Masr launched its EGP 11 bn residential project Elm Tree Park, with expected sales of around EGP 20 bn, the company said in a statement (pdf). The 476k sqm project housed in its Sarai development will include 2.2k residential units — including apartments, villas, and townhouses. The developer also introduced flexible payment plans starting at EGP 5.1k per month to attract a wider customer base.#2- Our friends at Somabay inked an agreement with construction firm EDECS to carry out the construction of the second phase of its marina expansion, according to a press release (pdf). The expansion aims to boost the marina’s area by 72.1k cubic meters, expand its capacity to 260 yachts, and enhance infrastructure and visitor facilities.NBFIS- Valu has renewed its partnership with Amazon Egypt, offering financing solutions for Amazon shoppers, according to a statement. “Through this renewed collaboration, Valu and Amazon aim to provide access, convenient service, and tangible value for their customers,” Valu CEO Walid Hassouna said. DEBT WATCH- Emirates NBD extended over EGP 20 bn in credit facilities to Elsewedy Electric to fund its expansion plans in Egypt, Saudi Arabia, and the UAE, according to a statement from the banking group. The financing, arranged by Emirates NBD teams across the three markets, will back Elsewedy’s regional projects in power, manufacturing, and infrastructure.

Abou Ghaly Motors partnered with the United Nations High Commissioner for Refugees (UNHCR) to support refugees and vulnerable host communities in Egypt, according to a company statement (pdf). The partnership focuses on education, skills development, and employability programs aimed at empowering refugees and improving access to services and livelihood prospects while expanding the company’s CSR activities in community development and social impact.AND- COREangels MEA was named the best angel network in Africa at the AESIS 2025 Awards during the ABAN Congress, Africa’s leading investor and innovation event, the Cairo-based network said in a statement (pdf). The PTS Holdings-operated USD 10 mn pre-seed fund was recognized for its venture studio model that connects global investors with early-stage startups across Africa and the Middle East.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)What they said: “This award reflects our belief that Africa’s innovators deserve a global stage … Through PTS Holdings, we’ve built an ecosystem that merges innovation, investment, and impact — operating COREangels MEA, Kemtix Ventures, and ORO E-Ventures to empower founders, support investors, and deliver meaningful, lasting value,” PTS Holdings Executive Chairperson and COREangels MEA Founding Partner Maha Mandour said.PLUS- AUC PhD candidate Shimaa Farag received the Young Talents from Africa Eni Award for developing an enzyme-based, eco-friendly method to treat wastewater in Egypt, according to a statement (pdf) from AUC. She is the only Egyptian and Arab recipient of this year’s award.

Anchorage Investments is still serious about its proposed mega petrochemical complex in Ain Sokhna, inking a strategic partnership agreement with the Suez Canal Authority yesterday for the project, according to a statement from the authority. The project will be built on authority-owned land and will play a role in driving the state’s industrialization push, reducing the petrochemical import bill, and employing some 2.5k workers, according to the statement.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The project — under the name Anchor Benitoite — has been in the works since at least 2021. It lined-up a contractor, inked tech agreements with Honeywell, shortlisted contractors, and was bidding for a golden license. The company recommitted to the project in 2023, but had been largely silent since.The project is back with a larger USD 6.5 bn price tag, up from the USD 2.5 bn announced in 2023. The complex’s first phase of development will cost USD 2 bn and primarily produce polypropylene and hydrogen as a secondary product. The second phase will come in at USD 4.5 bn and enable the plant to expand into other petrochemical products.

M&A WATCH- Coca-Cola Beverages Africa sees ownership shakeup: Coca-Cola HBC AG (CCHBC) — the parent company of Coca-Cola HBC Egypt — is acquiring a 75% stake in Coca-Cola Beverages Africa (CCBA) in a transaction that values the company at USD 3.4 bn, according to a statement. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The sellers: The Coca-Cola Company is selling a 41.52% stake — leaving it with 25% of the company — and Gutsche Family Investments is selling its entire 33.48% stake. Coca-Cola and the buyer agreed to a separate option agreement for CCHBC to acquire Coca-Cola’s remaining 25% within six years. THE EGYPT ANGLE- CCHBC fully acquired the Coca-Cola Bottling Company of Egypt in 2022 in a USD 304 mn transaction. CCHBC is doubling down on the African market with its acquisition of a controlling stake in CCBA. The bigger picture: “The transaction creates the second-largest bottling partner for the caffeinated soft drink by volume and marks another step in which the US firm is moving away from the business of bottling,” Bloomberg writes. BANKING- The central bank instructed banks to verify full payment of deposited capital for company incorporation or capital increases before issuing any deposit certificates, according to a circular (pdf) sent to banks yesterday. Banks are now barred from releasing funds deposited for company formation until the company is officially registered and its articles of association are approved.What this means: Banks now have to ensure that the deposited amounts match the capital officially declared in a company’s documents before issuing certificates. The decision aims to prevent potential manipulation or the creation of shell companies based on unverified certificates while providing banks with stronger legal protection by standardizing the issuance process. This also reduces the risk of violating know your customer rules or facilitating the creation of companies for illegal purposes, such as money laundering or tax evasion. However, the decision could slightly slow down new company registration processes, particularly in cases requiring a detailed review of capital documents or amendments. On the other hand, it enhances transparency and financial discipline in company formation and boosts local and foreign investor confidence in Egypt’s banking system, as it ensures that declared capital is genuinely deposited and operational. This boosts the credibility of newly registered firms. MANUFACTURING- The Egyptian Anode Blocks Company’s Ain Sokhna plant kicked off trial operations following the completion of the first phase of rehabilitation, according to a Public Enterprises Ministry statement. The first phase restored 125k tons of annual capacity, with output expected to double upon completing phase two in 1Q 2026. The move is part of a wider government initiative to revive and restructure idle factories.MARKETING-Al Ahly signed a EGP 2 bn, three-season sponsorship agreement with Qatar Airways, Al Borsa reports, citing unnamed sources. Al Ahly is prioritizing partnerships with foreign and Gulf companies to secure more hard currency. This comes as the club aims to strengthen its financial position and ability to pay out salaries in foreign currencies while reviewing existing sponsorships set to expire in 2025, according to one of the sources.EXPANSION- MCS sets foot in the UAE: Egypt-based IT solutions and cybersecurity company Mideast Communication Systems (MCS) has kicked off UAE operations with the launch of MCS Atlas, according to a statement. The move comes as part of the company’s regional expansion across the Gulf, Levant, and Eastern regions. Alaa Bawab (LinkedIn) will serve as CEO and Managing Partner of the UAE office. He brings to the table over 25 years of experience, most recently as Lenovo’s general manager for infrastructure solutions in the Middle East and Africa. STARTUP WATCH-Money Fellows eyes regional expansion: Local fintech startup Money Fellows plans to enter the Moroccan market in 1Q 2026 under a partnership with Attijariwafa Bank and one of Morocco’s sovereign wealth funds, founder and CEO Ahmed Wadi told Al Borsa. The partnership will see the formation of a new Moroccan arm, in which Money Fellows aims to secure a majority stake, Wadi added. The move comes as part of Money Fellows’ plans to expand into four GCC and African markets by 2030.Also in the cards: The startup plans to launch a new funding round for raising USD 60–80 mn during 2H 2026 to support its expansion strategy, Wadi said.DEBT WATCH-Real estate development company Inertia Egypt secured a EGP 5.2 bn shariah-compliant credit facility from a syndicate of state-owned banks, according to a statement (pdf). The six-year mudaraba financing package will help fund part of Inertia’s North Coast residential project Jefaira.Who did what? Banque Misr, Banque du Caire, the National Bank of Egypt, Housing and Development Bank, and the Suez Canal Bank all acted as lead arrangers on the agreement. Banque Misr, Banque du Caire, and the National Bank of Egypt also acted as marketers, while Banque Misr served as the facility agent, security agent, and account bank. Matouk Bassiouny & Hennawy provided counsel, Engineering Consultants Group acted as an independent engineering consultant, and Baker Tilly served as a financial advisor.EARNINGS WATCH- Eastern Company saw its net income increase 5.8% y-o-y to EGP 9.7 bn in FY 2024-2025, according to its latest financial statement (pdf). Net revenues rose 82.8% y-o-y to EGP 37.4 bn during the year, supported by a 27.3% increase in local cigarette sales and a 17.4% rise in exports, according to a separate report (pdf) from the board.

Four Chinese textile companies will invest USD 65 mn to set up factories in ElSewedy Industrial Development’s Sokhna 360 industrial city, according to a Suez Canal Economic Zone (SCZone) statement. The four factories will cover 238k sqm and create over 3k direct jobs. No further details were provided regarding the projects. About the zone: Sokhna 360 is a 10 mn sqm integrated industrial city in the Ain Sokhna industrial zone, offering industrial, residential, educational, and commercial areas, according to the company’s website. The project targets USD 3 bn in total investments and offers a range of incentives to foreign investors, including 100% ownership, full control of import and export activities, and exemptions from customs duties and sales tax.Chinese textile firms ❤️ SCZone: The SCZone has seen a surge in Chinese textile investments in 2H 2025. So far during the second half of the year we’ve seen Hengsheng inaugurate its USD 70 mn textile technology plant in Qantara West, Everfar Textile Egypt ink an agreement to invest USD 130 mn in a new facility, and Changzhou Ramada sign an agreement to set up a USD 22.6 mn textile manufacturing facility also in Qantara. PLUS- Agro Green For Exporting Agriculture Crops inaugurated its EGP 300 mn agricultural products factory in Dakahlia’s Gamasa Industrial Zone, according to an Industry Ministry statement. The new 11k sqm facility has an annual production capacity of 30k tons of packaged fresh vegetables. The factory will export its entire output to markets including the UK, the Netherlands, and France.AND- The Egyptian Company For Cosmetics also inaugurated three new pharma production lines in its EGP 200 mn cosmetics factory in Gamasa, producing tablets, capsules, and powders. The 4k sqm facility has an annual capacity of 650 tons, 40% of which is exported. What’s next? The government is planning to set up two new industrial zones in Dakahlia, covering 141 feddans and 93.5 feddans, as extensions of the Gamasa Industrial Zone, Industry Minister Kamel El Wazir said. The new areas aim to meet growing demand for industrial land, with priority given to existing manufacturers seeking expansion. Also in the pipeline: El Wazir added that work is underway to develop a logistics zone at Damietta Port to speed up cargo handling and export operations.

The government is moving ahead with plans to list the Gabal El Zeit wind farm on the EGX before year-end, likely by November or December, two government sources told EnterpriseAM. Procedures are already in motion to float 30-40% of the farm in a sale that could raise between USD 300-400 mn, we were told.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)But the government is still open to offers from a strategic investor — assuming they can meet the new valuation. A previous acquisition bid for the station by UK-based private equity giant Actis fell apart after the government pushed to increase the value of the sale from USD 300 mn to USD 350-400 mn. The government is now looking to raise roughly USD 600-800 mn from a majority stake sale to a strategic investor.GCC and British investors are said to be circling the Red Sea wind farm, which would mark one of the first major listings under the government’s revived privatization drive as it seeks to draw foreign capital, the sources said.What’s next? Advisors are preparing to market both the IPO and the potential strategic sale, depending on investor appetite.IN CONTEXT- The move comes shortly after authorities finalized a census of 561 state-owned companies to anchor the updated State Ownership Policy. The government is also working on a package of tax and regulatory incentives that would exempt IPO proceeds from taxes and expand breaks for investment funds to boost liquidity on the EGX.Also in the pipeline: The government is preparing to list at least two other companies affiliated with the military’s National Service Projects Organization (NSPO), one of the sources said. REFRESHER- Gabal El Zeit is among 10 companies for which the government tapped investment banks and counsels as part of efforts to fast-track its privatization program. The list also includes Safi, Wataneya, Silo Foods, Chill Out, Midor, Alamal Alsharif Plastics, and HoldiPharma subsidiaries CID Pharma and Misr Pharm.

PAYMENT SERVICES- Global payment services giant Visa plans to expand its operations in Cairo on the back of the country’s competitive advantages in operational costs, efficiency, and technical infrastructure, company representatives said during a meeting with Investment Minister Hassan El Khatib. Visa aims to develop new government payments and e-commerce solutions in the country, the statement noted. The company has already quadrupled its workforce at its Cairo office to around 120 employees and views Egypt as one of its “core markets” for its global strategy, alongside Japan, Germany, Brazil, Mexico, Saudi Arabia, and South Africa.Editor's note: The story has been amended on 22 October 2025, to clarify that Visa will not relocate its digital sales center from Dubai to Cairo, based on the Investment Ministry's revised statement.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)CAPITAL MARKETS-Post for Investment subsidiary PFI Asset Management launched its first sponsored mutual fund — the PFI Money Market Fund, aka PFI Cashi — it said in a statement (pdf). The fund joins three others managed by the company, including HDBank’s Mawared fund and two for GIG Ins. Egypt.What they said: “This launch affirms PFI Asset Management’s commitment to expanding its footprint in Egyptian asset management and delivering innovative investment solutions to its clients,” said CEO Ghada Alkady.HOSPITALITY-Orascom Development Egypt plans to gradually reopen five hotels in Taba that had been closed during the Gaza war, Investor Relations Group Head Ahmed Abou El Ella told Asharq Business. MINING-Egypt’s Afaq Mining made a commercial gold discovery in West Gabal Elba with reserves worth over USD 800 mn at current prices, Asharq Business reports, citing two unnamed sources. Initial reserves are estimated at 200k ounces.The company will submit a commercial exploration study to the Egyptian Mineral Resources Authority this week ahead of forming a joint venture with Shalateen Mineral Resource Company to start work on the find. Afaq has funneled over USD 20 mn into exploration efforts and plans to increase spending while also holding talks with the government to build a USD 50 mn gold production plant.REAL ESTATE-Real estate developer Palm Hills Developments is looking to acquire new plots along the Red Sea coast, Group CEO Yasseen Mansour told Asharq Business. The announcement follows a government push to catalogue plots suitable for investments along the coastal strip ahead of marketing them to investors.DIPLOMACY-Foreign Minister Badr Abdelatty held calls with his Italian, Spanish, German and Canadian counterparts to discuss ongoing preparations ahead of the International Conference on Early Recovery, Reconstruction, and Development in Gaza set to be held in Cairo in the second half of November. Abdelatty stressed the “urgent need” to begin implementing early recovery and reconstruction plans for the strip, while his counterparts reaffirmed their readiness to maintain close coordination with Cairo on Gaza’s recovery and reconstruction efforts.

Good afternoon, friends. Welcome to the start of a fresh new workweek. We’re in for warmer days, but here’s hoping for a cool news cycle.THE BIG STORY TODAY- 📍 The government is moving ahead with plans to list the Gabal El Zeit wind farm on the EGX before year-end, likely by November or December, two government sources told EnterpriseAM. Procedures are already in motion to float 30-40% of the company in a sale that could raise between USD 300-400 mn, we were told.But the government is still open to offers from a strategic investor — assuming they can meet the new valuation. A previous acquisition bid for the station by UK-based private equity giant Actis fell apart last year after the government pushed to increase the value of the sale from USD 300 mn to USD 350-400 mn. The government is now looking to raise roughly USD 600-800 mn from a majority stake to a strategic investor.GCC and British investors are said to be circling the Red Sea wind farm, which would mark one of the few major listings under the government’s revived privatization drive as it seeks to draw foreign capital, the sources said. THE BIG STORY ABROAD-🌐 All eyes are back on Gaza following reports that the Israeli military has launched a new attack on the enclave. The aerial attack in Rafah comes as Israel accuses Hamas of violating the ceasefire agreement, allegedly carrying out multiple attacks against the occupying force beyond the yellow line. Israel has violated the terms of the ceasefire 47 times since it came into effect, killing 38 Palestinians, including 11 members of a single family, according to Gaza’s media office. These figures were last updated on Friday.Attacks are also being reported throughout the strip, including the northern city of Jabalia. “Hamas movement reaffirms its commitment to the ceasefire agreement and emphasises that the Zionist occupation is the party continuing to violate the agreement and fabricate baseless pretexts to justify its crimes,” senior Hamas official Izzat Al Risheq said. Neither Israel nor Hamas have made any direct mention of today's reported attacks in their statements. (Reuters | Guardian | Sky News | Financial Times | France 24 | Independent)ICYMI- The US claimed earlier that it possesses “credible reports” that indicate an alleged plan by Hamas to carry out attacks against civilians in Gaza. “This planned attack against Palestinian civilians would constitute a direct and grave violation of the ceasefire agreement and undermine the significant progress achieved through mediation efforts,” a US Department of State statement published on Saturday reads. Hamas has since rejected the allegations, and accused Israel of funding and empowering gangs inside Gaza to cause disruption. (BBC | ABC | Reuters)OVER IN THE US- All major media outlets are still covering the nation-wide No Kings protests against US President Donald Trump’s policies. Nearly 7 mn protestors took part in protests across major US cities coast to coast, including New York, Washington DC, Miami, and Los Angeles. (Washington Post | BBC | CNN | Guardian)ALSO- The Louvre museum in Paris has been closed for the day after a robbery took place earlier this morning at the world’s most-visited museum. While details are scarce as investigation is still underway, French media reports that nine items of jewelry from the Apollo Gallery — where France’s crown jewels are kept — were stolen. (BBC | New York Times | CNN | France 24) Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here *** It’s Inside Industry day — your weekly Sunday briefing of all things industrial in Egypt. Inside Industry explores what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning through to product distribution, land allocation, industrial processes, supply chain management, labor, automation and technology, inputs and exports, and regulation and policy.In today’s issue: We’re taking a look at Egypt’s rapidly growing cement industry.☀️ TOMORROW’S WEATHER- Temperatures in the capital are on the rise once more, with the mercury set to peak at 32°C before cooling down to 17°C, according to our favorite weather app.

Startup funding in Egypt fell 37% y-o-y in 9M 2025, coming in at just USD 202 mn, according to Magnitt’s 3Q 2025 Emerging Venture Markets report seen by EnterpriseAM. The fall in value was also reflected in a fall in transaction count, down 24% over the same period to 53.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)But it was a different story for our Gulf neighbors, with the UAE seeing the total value of funding increasing 188% to USD 1.4 bn and Saudi Arabia seeing a 158% y-o-y jump in funding to USD 1.3 bn. Driving the fall in Egypt was a fall in big ticket funding rounds, with the USD 157.5 mn Halan round during 9M 2024 having an important impact on the numbers, Magnitt CEO Philip Bahoshy told EnterpriseAM. If you exclude big-ticket rounds, funding is actually up 25% y-o-y, he explained. Egyptian series A rounds had a good start to the year, rising 76% to 67.7 mn in 9M 2025. Driving this was USD 52 mn raised by Nawy and another USD 15.7 mn raised by Sylndr. Excluding big rounds, funding has risen consistently over the last three 9M periods, Bahoshy added.Weighing on VC activity is “persistently high inflation and continued currency depreciation,” which is limiting USD returns for those abroad and reducing liquidity in early-stage rounds — the primary market for the local VC scene — Bahoshy told us. This resulted in 11 less early stage transactions from the year before, with once active local investors now reducing their activity significantly, which illustrates the “sector-wide caution.”Across the region as a whole, MENA startups raised over USD 3 bn across 469 transactions by the end of September — that’s more than double last year’s total and, for the first time, surpassing the longtime emerging market leader Southeast Asia, which trailed with USD 2.5 bn, according to a statement (pdf) from Magnitt. The third quarter was MENA’s strongest on record, with USD 1.2 bn raised, up 259% y-o-y. This suggests a “potential shift in global capital allocation,” though a longer period is needed to confirm a permanent trend, Bahoshy told us. The UAE commanded the top spot for total funding, soaring 188% y-o-y to USD 1.43 bn across 164 transactions. KSA and the UAE together accounted for more than 90% of total regional funding. Meanwhile, Turkey’s funding grew 50% to USD 428 mn.Mega rounds — over USD 100 mn — drove more than half the total value in the third quarter, led by the UAE’s XPANCEO (USD 250 mn), Airalo (USD 220 mn), and Saudi Arabia’s Hala (USD 157 mn). Still, non-mega activity has been showing sustained quarterly growth since 3Q 2024, signaling “a deepening pipeline rather than short-term concentration,” Bahoshy told us. This was underscored by a maturing mid-stage, with series A and B funding surging 205% y-o-y to USD 1.4 bn in the first nine months. The early-stage pipeline also remains robust, with pre-seed deals rising 30% y-o-y, signaling a healthy influx of new founders.The fintech sector remains in the lead, attracting USD 965 mn (up 97% y-o-y) and representing over a quarter of all transactions. Growth was supported by open banking frameworks, major regional events, and large Saudi tickets. Enterprise software also gained momentum, rising to USD 320 mn across 52 transactions, up from USD 70 mn across 44 in the same period last year.Merger and acquisition activity doubled to 40 transactions in the first nine months of 2025 — a three-year high and a sign of a “healthier, more liquid ecosystem,” Bahoshy said. Exits were concentrated in the UAE (15) and Egypt (13), due to their mature buyer bases and ecosystems. However, “the exit challenge is more acute in the UAE and Egypt than it is in Saudi Arabia,” as the more mature startups in both countries are on the search for liquidity to survive the global extension of the average 7-year path to an exit, according to Bahoshy.Magnitt expects the remaining months of 2025 to see “sustained momentum and measured optimism,” bolstered by continued public-private collaboration and institutional capital flowing into emerging markets.The region as a whole bucked global trends, as emerging venture markets saw a 6% y-o-y decline in funding to USD 6.56 bn. Southeast Asia was hit hard with a 48% decline to USD 2.5 bn, logging its weakest quarter in seven years.

Good morning, folks and happy Thursday. We wrap up the week with a packed issue led by predictions of when we can expect Suez Canal traffic to pick up — sources tell us we can expect vessels to once again start passing through the canal early next year now that regional tensions are cooling following the Israel-Hamas ceasefire agreement.ALSO IN TODAY’S ISSUE- Finance Minister Ahmed Kouchouk unveiled a fresh privatization target for the fiscal year and the Madbouly government has extended its subsidized loan program to support industry, agriculture, and renewables players.WATCH THIS SPACE- #1- The Madbouly government is looking to raise USD 1.25-1.5 bn by offering up stakes in four state-owned companies by June, Finance Minister Ahmed Kouchouk told CNBC Arabia (watch, runtime; 14:11). At least half of the proceeds will go toward reducing government debt, which will help support the government’s efforts to reduce debt by 10% of GDP over two years.The ministry is also planning two more international issuances this year. One will be a conventional issuance, while the other could either be a labeled bond — think green, blue, or sustainability bond — or an issuance in a foreign market, like a Panda or a Samurai bond. Total issuances for the year will total USD 4 bn — just like last year — Kouchkouk added. #2- Could we soon see Chinese banks and financial institutions set up shop in Egypt? The Central Bank of Egypt (CBE) and China’s National Financial Regulatory Administration — which both supervise the banking sector in their countries — agreed to work toward licensing each other’s banks and financial institutions to operate in their respective countries under an MoU, according to a statement (pdf) from the CBE.The MoU — which also covered a wide range of areas for cooperation — follows a similar one with the People's Bank of China signed in July, which laid out the intention to boost local currency use when it comes to settling cross-border transactions and exchange information and professional expertise in monetary policy, financial markets, electronic payment systems, and more.Allowing Chinese banks to operate in Egypt — and making it easier for Chinese companies to trade in CNY — seems like an obvious thing to do. There’s been a substantial uptick in Chinese manufacturers setting up projects in Egypt, major Chinese financial institutions including the Industrial and Commercial Bank of China are involved in financing key projects including the new capital, and there’s the ongoing push in some corners for countries to trade in currencies other than the greenback.#3- We could wrap up another debt swap with European partners before the end of 2025, Planning Minister Rania Al Mashat told Reuters on the sidelines of the IMF and World Bank annual meetings in Washington. More swaps are in the pipeline for next year, Al Mashat said, describing the mechanism as a tool for “liability management” and a way to ease fiscal pressure. EQUAL TIME-The International Finance Corporation “currently … does not have plans to issue an EGP-denominated bond in Egypt,” the World Bank’s private sector-focused arm told us yesterday in response to a story we published in yesterday morning’s edition. Our report cited a senior government official who was speaking with us on the condition we not use their name.The claim: Our source told us the government had given the IFC the green light to resume its EGP-denominated bond program plan. The program would be designed to provide affordable liquidity to the private sector (have you checked interest rates lately?) while spurring activity in the public debt market. An IFC spokesperson told us after our report yesterday that the institution is “committed to supporting Egypt’s economic resilience and private sector growth,” which it will do by “working with government partners and financial institutions to strengthen local capital markets, improve access to local currency financing, and mobilize private investment aligned with Egypt’s development goals.”We’ll continue watching this space: Speaking again after the IFC told us it had no current plans to issue a bond, our source said an issuance is contingent “simply on some procedures” the Madbouly government is currently finalizing.DATA POINT- Egypt welcomed 15 mn tourists in the first nine months of 2025, up 21% y-o-y, putting it on track to reach its 17.5-18 mn year-end target, Tourism Minister Sherif Fathy told Asharq Business.IN THE HOUSE-The House will meet today to discuss presidential objections to several articles of the draft Criminal Procedures Law. A special committee tasked with reviewing the articles objected to by President Abdel Fattah El Sisi approved, in principle, all the recommendations.REMEMBER- The president sent the draft Criminal Procedures Law back to the House last month to address objections over several articles, including those tied to governance, clarity, and practicality. We dove into some of the key provisions of the draft law in our previous coverage — check it out here.The Senate will reconvene on Saturday, ready to kick off the first session of its new legislative term.HAPPENING TODAY- #1- It’s day four of the World Bank and IMF annual meetup in Washington. Dominating the narrative on the meetings this morning is the fund’s warning that global sovereign debt will hit 100% of GDP by 2029 — the highest since 1948 — according to its latest Fiscal Monitor report (pdf). But there’s good news for Egypt in the report, with debt to GDP expected to fall from 87.0% in the previous fiscal year to 72.5% by the fiscal year 2029-30.ALSO FROM THE REPORT- The report sees Egypt’s overall fiscal deficit narrowing from 12.4% of GDP last fiscal year to 3.5% by the fiscal year 2029-30, with the general government net debt-to-GDP ratio on a similar downward trajectory — from 82.3% last fiscal year to 67.9% in the fiscal year ending in June 2030. Planning Minister Rania Al Mashat argued yesterday that the recently launched National Narrative for Economic Development is a continuation of Egypt’s reform program during her speech at a meeting of G24 ministers, according to a ministry statement. With Egypt’s Extended Fund Facility agreement with the IMF coming to a close in October 2026, many investors and partners are eager to know what route the country will take once it loses the fund as a policy anchor. In the months to come, we expect the cabinet economic team and the central bank to be hammering the line that the reform agenda is here to stay.Al Mashat also took part in the World Bank Group’s Arab board of governors’ meeting, during which she highlighted the importance of “regional integration to address development challenges” and the World Bank supporting the private sector in member states. Al Mashat will return to the stage today as part of the Leaders’ Speaker Series.#2- Cairo Water Week will wrap up later today, putting an end to this year’s annual event to discuss innovative solutions for climate resilience and water sustainability at New Cairo’s Triumph Luxury Hotel. The event’s packed schedule included workshops, exhibitions, and sessions around adaptation to climate change, water resource management, nature-based solutions, and sustainable infrastructure. The event also hosted competitions for young inventors and showcased new technologies aimed at advancing the water sector in Egypt and the region.PSA- WEATHER- It’s another cool day in Cairo, with a high of 28°C and a low of 19°C, according to our favorite weather app.It’s more or less the same in Alexandria, with a high of 27°C and a low of 18°C. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here CIRCLE YOUR CALENDAR- Owners of unauthorized buildings will get more time to legalize their properties after the Madbouly cabinet approved extending the deadline for submitting reconciliation requests for certain building violations by an additional six months starting 5 November.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.** DID YOU KNOW that we cover Saudi Arabia and the UAE?** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.THE BIG STORY ABROAD- The tenuous Israel-Hamas peace agreement is still dominating headlines, as Hamas returns more bodies of hostages and says it has now returned all the bodies it is able to reach, and needs more time and specialized equipment to recover others. Meanwhile, Israel has threatened to return to war and “defeat Hamas” if it does not uphold its side of the agreement, which also includes Hamas’’ total disarmament. Some 19 bodies have yet to be returned. (Bloomberg | BBC | Financial Times) Meanwhile, sources said work has already begun on an international stabilization force that would go to Gaza and stabilize security amid tensions between Hamas and Israeli militants in the strip. The US is in talks with officials from Indonesia, the UAE, Egypt, Qatar and Azerbaijan, on their involvement as part of the force. (Reuters) ALSO GETTING ATTENTION- US President Donald Trump is threatening to launch military strikes in Venezuela, after authorizing the Central Intelligence Agency to conduct covert strikes there as part of a campaign against drug trafficking. (Wall Street Journal | Guardian | New York Times) PLUS- Levels of carbon dioxide surged at record levels in 2024, as record additions of renewable energy capacity failed to put the world on track to meet its climate targets for 2030, a report by the International Renewable Energy Agency said. The ongoing burning of fossil fuels, along with a surge in wildfires, are to blame, IRENA said. (Reuters | Guardian)

True reform is about transforming businesses, markets, and opportunities on the ground. Post for Investment (PFI), the investment holding of Egypt Post, plays a central role in this transformation, partnering to scale sectors, modernize operations, and foster financial and digital inclusion.As a government-backed investment platform, PFI bridges public credibility with private market dynamism, creating an environment that attracts long-term domestic and international capital. This unique positioning strengthens Egypt’s competitiveness and establishes it as a diversified, investment-ready economy.With Egypt Post’s 160-year legacy of trust as its foundation, PFI has evolved from a project management office into a fully-fledged private equity firm. This evolution reinforces our role as a strategic investor, acquiring, restructuring, and scaling companies that drive competitiveness, resilience, and inclusive growth. Guided by a clear mandate across strategic, operational, non-banking financial services, and logistics sectors, we deliver sustainable returns for our shareholders while generating measurable impact in line with Egypt’s reform agenda.By combining disciplined capital deployment with institutional credibility, PFI stands as a trusted partner in shaping Egypt’s growth story.Click here to learn more about PFI.

MANUFACTURING- Infinity Fabric will set up a USD 15 mn textile manufacturing facility in the Sokhna Industrial Zone, according to a statement. The project will be located on a 24k sqm plot developed by the Main Development Company.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The project will be implemented in two phases — USD 10 mn for the first phase and USD 5 mn for the second, which will include capacity expansions. The facility will specialize in yarn production, and textile weaving, dyeing, and printing, with an annual production capacity of 6k tons of yarn and 15k tons of fabrics.Operations are scheduled to begin in 3Q 2026, and the project is expected to create around 1k jobs.DEVELOPMENT FINANCE-The European Investment Bank is mulling a USD 38 mn equity investment into a USD 150 mn vehicle managed by Tanmiya Capital Ventures’ Fund Manager BV, according to a project summary from the lender. The EU-Egypt Tanmiya Growth Fund II will support the “growth and institutionalization” of SMEs by opening up capital and providing managerial input.

Prime Minister Moustafa Madbouly appointed Odin Investments CEO Hashem El Sayed as assistant prime minister and head of the cabinet’s unit dedicated to state-owned companies, according to a decision published in the Official Gazette. El Sayed will serve a four-year term, which could be renewed once. REMEMBER- Last year, the cabinet approved a draft law establishing the central unit dedicated to state-owned companies — dubbed the State-Owned Companies Inventory and Follow-Up Unit — with the aim of regulating state ownership in companies that the government wholly owns or holds stakes in.

MANUFACTURING- #1- The Madbouly government is planning to offer two new cement production licenses before the end of 2025 to boost capacity and curb local price increases, Asharq Business reports, citing three unnamed government officials. Each license will include a full production line that will add between 1.5-2 mn tons in annual output.The move aims to meet growing domestic and regional demand amid an expected uptick in reconstruction projects across the region. Industry insiders expect local cement consumption to rise to around 52 mn tons by the end of 2025 — up from 47 mn tons last year — supported by higher construction activity and stronger market demand.REMEMBER- The Industry Ministry announced that factories increasing output this month will receive one-time discounts on fees tied to amendments in their production-capacity licenses, aiming to encourage higher utilization, stabilize prices, and ensure adequate domestic supply. The move follows a July directive that gave cement factories one month to restart idle production lines as part of efforts to balance supply and demand in the local market.#2- Turkey’s Kipas Textiles plans to set up a USD 100 mn integrated denim fabric production complex in Sadat City. The project is part of the company’s efforts to expand its presence in Egypt. REMEMBER-Egypt has been in talks with the Turkish Clothing Manufacturers' Association to attract new investments in garment supplies and accessories, with a Turkish business delegation planning to visit Egypt before the end of the year to explore establishing new factories to serve local and export markets. BANKING-CIB is planning to apply for a digital banking license early next year, Chairman Hisham Ezz Al Arab told Al Arabiya. He added that it will not take long to obtain the license as the bank has been working on developing its platform for over a year.Everyone is lining up to get a digital banking license: QNB got the greenlight to establish the new digital bank EZBank earlier this month, Banque Misr’s Misr Digital Innovation received approval from the CBE to transform into the country's first fully digital-native bank onebank, and Raya Holding is planning on applying for a digital banking license by the end of the year. REAL ESTATE-Downtown Cairo-focused Al Ismaelia for Real Estate Investment has launched the TamaraHaus project to restore a historic Neo-Renaissance building in Downtown Cairo, originally built in the early 20th century, according to a statement. The building will be managed and operated by Alchemy Group’s Alchemy Experience and will serve as a cultural and lifestyle hub.The details: Alchemy Experience invested around EGP 200 mn in the property over the past two years. The redevelopment will feature a boutique hotel, restaurant, and fitness studio, Ismaelia Chairman Karim Shafei said at a press conference attended by EnterpriseAM yesterday.The developer expects to complete its capital increase by the end of this year or during the first quarter of 2026, according to Shafei. The capital hike is expected to accelerate the company’s investment plan to acquire new assets and develop several of its buildings in Downtown Cairo. The plan also includes developing 150-200 hotel units within two years, Shafei added.

MANUFACTURING- State-owned EgyptAlum plans to invest more than EGP 6 bn in the current fiscal year to launch initial phases of several projects, Al Borsa reports, citing an unnamed company official. The investments will cover a new aluminum foil factory, a pharma packaging facility, an aluminum dross recycling line, and a car rim manufacturing project, along with the rehabilitation of an existing plant.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Construction of the foil plant will kick off early next year with EGP 1.4 bn in self-funded spending for the first of three stages. EgyptAlum will rely on its own funds after talks with strategic investors to co-finance its rehabilitation project fell through. The EGX-listed company laid out its plans last year for the plant, which was then said to cost USD 100 mn and have an annual production capacity of 50k tons.REMEMBER- There is a huge demand for foil in Egypt — but to the best of our knowledge, not a single factory produces it. President Abdel Fattah El Sisi pointed last year to the state's import bill for foil — most of which comes from China — that totaled USD 512 mn between 2014 to 2023. Noting both the material’s import bill and its importance to other industries, El Sisi called on investors to step up and help revive the industry.INVESTMENT WATCH-The Finance Ministry will announce potential investments in Assiut in the coming days, including a prime Nilefront site earmarked for sustainable tourism projects and another central property suitable for redevelopment, according to a ministry statement. The initiative is part of the government’s drive to unlock value from public assets, especially idle land. The ministry invited investors, developers, and investment funds to submit proposals for projects that could revive Assiut’s Nile corniche and downtown area through tourism, leisure, and service ventures. EXPANSION-Raya Holding is close to acquiring a Saudi e-commerce firm and has already begun procedures to acquire another Saudi company operating in financial services and fintech, with the transaction expected to close early next year, Business Development Manager Mahmoud El Hawary told Asharq Business. The company is also eyeing expansion into Libya and Iraq.DEBT WATCH-Property developer Sky Innovo signed a EGP 7 bn, long-term syndicated loan led by Banque Misr and the National Bank of Egypt (NBE) to finance part of the EGP 16 bn Park St. Edition mixed-use project in New Cairo’s Golden Square, according to a statement (pdf). The loan has a tenor of up to seven years and nine months, and it saw participation from Abu Dhabi Commercial Bank, Al Baraka Bank Egypt, and Bank NXT.ADVISORS- Banque Misr acted as the lead arranger, bookrunner, and facility and account agent, while NBE served as the co-lead arranger, bookrunner, and security agent. Abu Dhabi Commercial Bank Egypt joined as the technical bank.

Egypt’s current account deficit narrowed to USD 15.4 bn in FY 2024-2025, down 25.9% y-o-y from the USD 20.8 bn recorded a year earlier, according to central bank figures (pdf). The deficit shrank on the back of a marked increase in remittances, a rise in tourism revenues, and a jump in non-oil exports.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)BoP slips into deficit: The overall balance of payments recorded a USD 2.1 bn deficit during the fiscal year, compared to a USD 9.7 bn surplus a year earlier. The shift was mainly attributed to a decline in the net inflows of the capital and financial account, which recorded USD 10.2 bn compared to inflows of USD 29.9 bn in the fiscal year 2023-2024, which included USD 35 bn from the Ras El Hekma transaction. DRIVING THE IMPROVEMENT-#1- Remittances on the rise: Remittances from Egyptians abroad jumped 66.7% y-o-y to USD 36.5 bn last fiscal year, up from USD 21.9 bn in the fiscal year 2023-2024.#2- Tourism revenues continued to climb, rising 16.3% y-o-y to USD 16.7 bn, thanks to a pickup in tourist nights to 179.3 mn from 154.1 mn.#3- The investment income deficit narrowed 9.6% y-o-y to USD 15.8 bn, as investment income payments fell 3.7% to USD 18.7 bn and receipts jumped 50.1% to USD 2.9 bn. DRAGGING THE BALANCE-#1- Non-oil trade deficit widened 16.3% y-o-y to USD 37.1 bn due to increased spending on soya beans, wheat, spare parts for cars and tractors, corn, and raw tobacco. Imports jumped 21.9% y-o-y to USD 71.7 bn, and the rise in exports was not enough to help offset the increase. Non-oil exports rose 29.1% y-o-y to USD 34.6 bn, driven by a jump in exports of gold, fruits, and ready-made garments.#2- Oil trade deficit nearly doubled: The oil trade deficit expanded to USD 13.9 bn from USD 7.6 bn a year earlier, as oil imports rose to USD 19.5 bn on the back of higher gas, oil products, and crude imports. Meanwhile, oil exports inched down by USD 128.2 mn to USD 5.6 bn due to falling crude and gas shipments, partially offset by a rise in product exports.#3- Suez Canal revenues plunge: Suez Canal receipts fell 45.5% y-o-y to USD 3.6 bn during the fiscal year, with net tonnage down 55.1% and vessel transits falling 38.5% amid continued Red Sea disruptions.#4- FDI inflows moderate: Net FDI into Egypt fell to USD 12.2 bn last fiscal year from USD 46.1 bn a year earlier, when inflows were inflated by the Ras El Hekma agreement. Non-oil FDI inflows came in at USD 11.6 bn, while oil FDI recorded a net inflow of USD 598.3 mn after a net outflow of USD 351.6 mn a year earlier.#5- Portfolio inflows weaken: Portfolio investment in Egypt registered a net inflow of USD 1.6 bn during the period, down from USD 14.5 bn in FY 2023-2024.#6- Higher debt repayments pressure the financial account: Egypt recorded a net repayment of USD 3.5 bn on medium- and long-term loans last fiscal year, compared to a net repayment of USD 2.4 bn a year earlier. A LOOK AT 4Q-Our balance of payments recorded a deficit of USD 196 mn in 4Q FY 2024-2025, reversing a USD 5.55 bn surplus during the same period a year earlier, but narrowing from a USD 1.37 bn deficit recorded during 3Q FY 2024-2025, HC Securities’ Heba Mounir told us. Reuters also picked up the story.