Commodities

The government paid out USD 1 bn in arrears owed to international oil companies during the first week of July, Asharq Business reports, citing an unnamed government source with knowledge of the matter. This month’s disbursements mean that Egypt has paid out a total of USD 8.5 bn in arrears to IOCs in the last 12 months, after a similar payment in January and several other payments in 2024.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)We still have some ways to go — but the end is in sight: Egypt’s total outstanding arrears now stand at around USD 2.5 bn, which the government plans to clear out in September, according to the government source.REMEMBER- Following a costly few months of energy imports to bridge the gap between local production and demand, the Oil Ministry has been working to start increasing local energy production in 2025. We reported in February that the government is planning to clear all arrears owed to IOCs by the end of 2025, beginning with a USD 1 bn disbursement, following earlier payouts and new incentives aimed at boosting investment and domestic output. The big picture: The move comes as Egypt tries to position itself as a reliable partner in the Eastern Med energy market amid a mounting supply-demand imbalance. Current production stands at 4 bcf/d — nearly 40% below the 7 bcf/d needed to meet the country’s surging summer demand. The supply crunch has pushed LNG exports for most of 2025 to prioritize domestic needs.

FSRUs coming online: Egypt’s two recently-acquired floating storage regasification units (FSRUs) will begin operations sequentially starting today, after their connection to the national grid was previously delayed, a government source told EnterpriseAM. Only two out of six monthly LNG shipments needed to secure the energy supply were postponed due to the delayed FSRUs. (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 two FSRUs were expected to go online and begin feeding the national grid this week, Prime Minister Moustafa Madbouly said last week. Once they come online, the Energos Eskimo and Energos Power will each add 750 mn cubic feet per day (mcf/d) to the country’s regasification capacity. No electricity disruption: The energy demand was met through mazut shipments to operate power stations until regasification vessels are fully operational.Egypt’s LNG imports held steady this month despite peak summer electricity demand, according to Bloomberg shipping data. “The delay in installing the FSRUs has meant Egypt has been unable to ramp-up LNG imports. Imports over the first six months of 2025 of 2.41 mn tons were flat with 2H 2024 levels,” according to industry publication Middle East Economic Survey (Mees).Waiting to ramp up: The FRSU units — along with the incoming 450 mcf/d Energos Winter — will support the country’s incoming 160 LNG deliveries from companies including Saudi Aramco, Trafigura Group, Vitol Group, Hartree Partners LP, and BGNWe need things to move fast: The country is facing a gas shortfall of about 2.5 bcf/d as local production and pipeline imports from Israel fall short of the 6.5 bcf/d needed to meet peak demand.

Recapping day one of the Egypt Mining Forum: Yesterday was day one of the Egypt Mining Forum, where local and global mining heavyweights came together to explore potential investments in the sector. Here’s everything that went down during the first day of the two-day event: (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)AGREEMENTS AND REGIONAL COOPERATION-#1- USD 658 mn phosphoric acid production plant moves forward: A consortium of local state-owned players and two Chinese state-owned contracting firms signed the final agreements and contracts for the USD 658 mn phosphoric acid production complex at the Abu Tartour plateau in New Valley governorate. The signing took place on the sidelines of the forum, between an Egyptian consortium — which included Abu Tartour for Phosphoric Acid, Abu Qir Fertilizers, East Gas, Mineral Resources Authority, Phosphate Misr, Petrojet, and Enppi — and a Chinese consortium, which consisted of China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Company (ECEC).REMEMBER- The two consortiums inked an agreement in June to build the facility, which will produce 250k tons of high-concentration commercial phosphoric acid annually in its first phase using phosphate ore extracted from the Abu Tartour mines. Most of the output is expected to go toward fertilizer production.AND ANOTHER ONE? Elsewedy Electric is mulling plans to build a phosphoric acid plant in Egypt poised for export purposes, CEO Ahmed Elsewedy told Asharq Business on the sidelines of an event in Cairo. The firm aims to conduct feasibility studies and assess phosphate reserves in the Sibaiyyah area in Aswan in the upcoming period. The investment ticket of the plant and the markets destined for exports have not been disclosed. #2- Two new gold exploration agreements: The Oil Ministry signed two new agreements on the sidelines of the forum; a license agreement for the exploration of gold and associated minerals with Centamin and an initial framework agreement with global mining major Barrick Gold.#3- Exchanging data with Jordan: The Oil Ministry has signed a cooperation agreement with Jordan to exchange geological data and explore shared mineral-rich formations, Jordanian Energy and Mineral Resources Minister Saleh Al Kharabsheh said during the forum. He emphasized the importance of regional collaboration to fully tap into cross-border resources, and hinted at a potential for deeper integration across the region’s mining sectors.THE NEXT STAGE OF MINING REFORM-Four pillars defining the national mining agenda: Oil Minister Karim Badawi said that Egypt’s mining development strategy now hinges on four pillars; skilled geological talent, strong infrastructure, an attractive financial framework, and sufficient energy supplies. He added that the next stage includes launching nationwide geological surveys, reassessing and reprocessing existing datasets, and expanding sampling and lab analysis activities — all of which will be made available to investors.ICYMI- The government is looking to raise the mining sector’s share of GDP to 5-6% from less than 1% currently. To realize this goal, General Authority for Investment and Freezones Head Hossam Heiba said the plan includes expanding value chains for mineral-based industries, as well as providing better access to logistics services like shipping, storage, and supply chain management.CATCHING UP WITH SHALATEEN-State-owned Shalateen Mineral Resource has increased its gold production this year by 30% y-o-y, Chairman Hany Mostafa told Al Arabiya on the sidelines of the forum. The company has also launched geological studies at a new site in Marsa Alam. The three-year exploration program is expected to cost EGP 90-100 mn, according to MostafaNew updates on the Aswan mining complex: Mostafa said that the industrial mining complex in Aswan is expected to add 1.2-1.5 tons of gold to the country’s reserves once it's completed. Construction works on the complex — which spans 1.4k feddans — have reached “about 60-70%,” according to Mostafa, who confirmed its completion “by the end of the year.” An international tender in the works: Mostafa also said that Shalateen is “currently preparing an international tender, in cooperation with Egyptian Mineral Resources Authority (EMRA) and the Oil Ministry,” without disclosing the timing. REMEMBER-Unconfirmed reports out in January claimed the company will relaunch its gold exploration bid in the first half of 2025 after the offers for its four-times extended tender that came to a close in November did not meet the required criteria.

PROJECTS-The Finance Ministry is planning to present nine new PPP projects worth 39 bn to the PPP Supreme Committee next month, PPP Unit Head Ater Hanoura tells Al Borsa. The project pipeline comprises power transmission and wastewater treatment, with tenders for four substations worth a combined EGP 8 bn slated for launch this week. ENERGY-Cheiron is set to add 30 mcf/d of natural gas to the national grid from a newly drilled well in the West Bullurus concession before the end of July, Al Arabiya reports, citing a government official. Cheiron’s joint venture with the Egyptian Natural Gas Holding Company is finalizing processing and grid connection. A second well in the area is set to add another 20-25 mcf/d later this quarter, as Egypt taps into existing assets to boost output.

Good afternoon, friends, and congratulations on making it to the half-way mark of the workweek. It’s looking like an energy-heavy news day here at home, with a handful of big energy stories leading the news cycle this afternoon. Globally, however, headlines aren’t focusing on one particular story, with many in the spotlight. THE BIG STORIES TODAY #1- The government paid out USD 1 bn in arrears owed to international oil companies during the first week of July, Asharq Business reports, citing an unnamed government source with knowledge of the matter. This month’s disbursements mean that Egypt has paid out a total of USD 8.5 bn in arrears to IOCs in the last 12 months, after a similar payment in January and several other payments in 2024.We still have some ways to go — but the end is in sight: Egypt’s total outstanding arrears now stand at around USD 2.5 bn, which the government plans to clear out in September, according to the government source.#2- UAE’s AMEA Power has commissioned its 300 MWh Battery Energy Storage System (BESS), Egypt’s first, at its 500 MW Abydos solar power plant, according to a press release. The integration of the BESS system into the solar project was financed by a USD 72 mn package from the International Finance Corporation. Expanding the local footprint: The project is among the two Amea Power agreed to invest some USD 800 mn to develop last year. The investment also covers a 1 GW solar power plant with 600 MWh BESS in Benban. Amea will also set up a 1 GWh BESS facility in Zafarana. For Dasha Badrawi and his team at Marakez, the North Coast is rooted in the memories of childhood summers in Agami and Montaza — the endless beach days and the simple roaming from cabin to sea. In a special Destination Sahel episode of Making It (our podcast on how regional leaders are building great businesses) Dasha is telling us how those memories are helping shape Ramla, Marakez’s flagship coastal project in Ras El Hekma. Dasha is a longtime friend of EnterpriseAM and a big part of our origin story, so it was a treat for Patrick, our editor-in-chief, to have him on the show. They unpack how Marakez quietly became one of Egypt’s most influential developers — and Dasha’s journey from corporate law in London to building District 5, one of the hottest mixed-use destinations in the country. Dasha’s secret? It’s been all about surrounding himself with the right people — and taking big bets on long-term value.Dasha also shares what he sees driving buyer behavior in 2025, why Egypt’s real estate model keeps defying gravity, and how recurring revenue, walkable communities, and local authenticity will define the next chapter of the industry.You can catch the full episode on Apple Podcasts | tune in on Spotify | and find us on Omny. Or tap or click here to go read the full transcript on our website.THE BIG STORY ABROADIt’s a thoroughly mixed bag in the international business press this afternoon, with no story clearly capturing their imagination thus far. Among the stories getting top billing: JPMorgan Chase reported USD 15.0 bn in net income for 2Q 2025 on USD 44.9 bn in revenues, according to its earnings release (pdf). The bank’s bottom line performance for the quarter came in higher than expected, marking its sixth consecutive quarter of higher-than-forecast earnings. (Financial Times | Wall Street Journal | Reuters)MEANWHILE- Nvidia is also in the headlines after the company said it plans to resume sales of its H20 AI chip to Chinese firms. The planned resumption of sales comes as the US government signaled to Nvidia that these exports would be approved, which Bloomberg notes is “a dramatic reversal from the Trump administration’s earlier stance on measures designed to limit Beijing’s AI ambitions.” Reuters also has the story. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ☀️ TOMORROW’S WEATHER- Brace yourself for a particularly warm day tomorrow, with the mercury set to peak at 38°C, before cooling down to 23°C. The North Coast is also starting to get a little warmer, with a high of 29°C and a low of 25°C, according to our favorite weather app.

FSRUs secured, but gas woes persist: Egypt has so far avoided the return of rolling blackouts amid heightened summed energy demand, but industry publication Middle East Economic Survey (Mees) isn’t sure the government can keep the lights on with its two newly-secured floating storage regasification units (FSRUs) sitting unused, yet to be connected to the grid. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)How much are we missing out on? Once they come online, the Energos Eskimo and Energos Power will each add 750 mn cubic feet per day (mcf/d) to the country’s regasification capacity. As things stand: The country is facing a gas shortfall of about 2.5 bcf/d as local production and pipeline imports from Israel fall short of the 6.5 bcf/d needed to meet peak demand. Sporadic blackouts have already occurred, but Egypt’s grid remains mostly stable for now.IN CONTEXT- “The delay in installing the FSRUs has meant Egypt has been unable to ramp-up LNG imports. Imports over the first six months of 2025 of 2.41 mn tons were flat with 2H 2024 levels,” Mees wrote.REMEMBER- The government has been preparing for a surge in demand over the summer months by booking in LNG shipments — and the necessary infrastructure to process the deliveries — to close the gap between demand and supply. Madbouly gives us reason to be hopeful: The two FSRUs are expected to go online and begin feeding the national grid this week, Prime Minister Moustafa Madbouly said (watch, runtime: 1:15:02) during his weekly presser last Wednesday. They will join the already-operational Hoegh Galleon. Once all three are up and running, total regasification capacity will rise to 2.25 bcf/d.A fourth unit is on the way: The 450 mcf/d Energos Winter will soon be stationed at Damietta’s United Gas Derivatives Company berth. A loading arm was delivered last week to prepare for its arrival. Once active, the unit will bring Egypt’s total FSRU-based capacity to 2.7 bcf/d.IN OTHER ENERGY NEWS- A premature statement gives us reason to believe we’ll soon see Cypriot gas coming our way: Cyprus Energy Minister George Papanastasiou prematurely announced that Exxon Mobil has made a significant gas discovery at Cyprus’ Pegasus-1 well and that there were plans to send the gas to Egypt for liquefaction and re-export. Don’t get your hopes up: “Announcing the gas find before an official statement was issued was ill-advised but more so was the mentioning that the gas would be sent to Egypt,” an industry source told industry publication Middle East Economic Survey (Mees). He explained that Exxon is advising caution and that it will need months to analyze the data before making the decision to send gas for liquefaction and re-export in Egypt. We have been expecting Cypriot gas: Gas from Cyprus’ Cronos and Aphrodite fields will be coming our way, with agreements inked earlier this year between the two sides that will see the country ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.REMEMBER- After becoming a net exporter of LNG in 2018 and signaling its intention to become an important energy exporter to the region and Europe, production falls and rising domestic demand led to Egypt having to ramp up imports to bridge the supply gap. Egypt has been looking to return to its status as a net LNG exporter; Mees sees that happening by 2027 after its Nargis and Nour fields come online.

FINTECH- Fintech giant Valu secured the initial green light from the Central Bank of Jordan to roll out BNPL services in the country as part of its regional expansion plans, according to a company statement (pdf). Valu has already partnered with local merchants and financial institutions and hired experienced professionals in the Jordanian market to support the rollout.(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: “Expanding into Jordan with our BNPL services represents a major leap forward, unlocking new opportunities for consumers and merchants alike … The recent listing on the EGX and Amazon’s strategic investment reinforce our confidence in our growth trajectory and our commitment to transforming digital finance across the region,” Chief Strategy and Market Expansion Officer Habiba Naguib said.Why Jordan? “Competing in markets like Saudi Arabia or the UAE, where giants like Tabby and Tamara dominate, doesn’t align with our vision. Instead, we’re focusing on Jordan, where we can build a strong presence and establish ourselves as a leader. This targeted approach allows us to concentrate our resources and maximize our impact,” CEO Walid Hassouna told us last month.ENERGYCanada-based oil and gas firm TAG Oil will participate in the bid by the Egyptian National Petroleum for Exploration and Development Company for various blocks, the company said in an announcement. TAG is particularly focused on expanding its position in the Western Desert, targeting the Abu Roash “F” (ARF) oil resource play. The bidding door will close on 31 August. REAL ESTATE- Mountain View tapped digital platform Core Livings as its exclusive partner for resale services across its projects and rental services in its Ras El Hekma project, with plans to expand to Cairo and Ain Sokhna next year, the real estate player said in a statement (pdf). Core Livings will allow owners and tenants to browse and manage Mountain View units through its digital platform.DEBT-Trella secures partial loan guarantee from DFC: Homegrown trucking startup Trella has secured a USD 4.2 mn partial loan guarantee from the US International Development Finance Corporation (DFC) to support a USD 6 mn debt facility from US sustainable lender ALMA, the DFC said on its website. The facility will help Trella expand its digital freight platform in Egypt, boost supply chain efficiency, and improve the incomes of local truckers.Why does the US care? “Trella receives 15% of its revenue directly from American companies including Amazon, General Motors, Heinz, Coca-Cola, and Pepsi. In addition, 40% of its revenue comes from shipping via international ports, which could include third-party transportation of US goods,” DFC said.

LOGISTICS- Cyprus’ UW Group is eyeing investments in the Port Said Shipyard to turn it into a global shipbuilding hub offering maintenance, repair, and green scrapping services. This came during a meeting between Suez Canal Authority head Osama Rabie and a delegation from the ship repair and maintenance service provider UW Group, according to a statement from the authority. Both sides will study the proposed partnership and hold further meetings to discuss technical and economic aspects.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.TECH-A new fintech player enters the scene: London-based startup LemFi launched its low-cost payment services in Egypt, tapping into the country’s USD 29.6 bn remittance market, according to a statement (pdf). The company already operates in the US, Canada, the UK, Europe, Morocco, and Tunisia. “This strategic expansion positions [LemFi] to provide its service offerings to Egypt’s massive diaspora community, building on the country’s growing adoption of the digital payments market,” the statement read.REAL ESTATE-Real estate developer and asset manager Green Investments launched its digital fractional ownership platform B.almetr, according to Al Mal. The platform allows clients to purchase spaces in ready-to-lease units as small as 1 sqm, with investments starting from EGP 500k that are backed by exit options. Regulatory approvals from the Financial Regulatory Authority and the Central Bank of Egypt are still pending.

INFRASTRUCTURE- Egypt, Russia to push ahead with Dabaa nuclear plant construction: Electricity Minister Mahmoud Esmat and Rosatom CEO Alexey Likhachev inked a protocol complementing their intergovernmental nuclear cooperation agreement, alongside a supplementary contract for Dabaa nuclear power plant’s construction and operation, according to a statement from the Electricity Ministry. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The agreements came on the sidelines of a meeting between President Abdel Fattah El Sisi and Likhachev yesterday, which focused on the progress on Egypt’s first nuclear power plant, according to an Ittihadiya statement.REMEMBER- Rosatom was contracted in 2015 to handle the construction and provide fuel for Dabaa, Egypt’s first nuclear power plant. The company broke ground on the USD 28.8 bn project in the summer of 2022. Dabaa will include four 1.2-GW reactors and is set to come online at the beginning of the next decade.DEBT-Gov’t eyes USD 1 bn in financing for CSCEC’s medical city: The Health Ministry is looking to secure USD 1 bn in financing from Chinese banks to finance the 230-fedan medical city that China State Construction Engineering Corporation (CSCEC) is set to build in the new capital, Asharq Business reports, citing sources with knowledge of the matter. CSCEC has reportedly finished designing the project and is set to kick off construction before year-end as the financing agreements are finalized.REMEMBER- CSCEC inked an MoU last August to design and construct the planned medical city, which we first heard about back in March last year. The project will house around 300 clinics, research centers, central laboratories, a blood bank, among other services. It will have a total capacity of more than 4.2k beds.AUTOMOTIVE- #1- Kasrawy Group is now the exclusive agent for Chinese electric vehicle brand Avatr in Egypt, adding to the long list of brands under its umbrella, including Citroën, Jetour, and Iveco, according to a press release seen by EnterpriseAM. The first two Avatr models are scheduled to be launched in the local market in 4Q 2025 or 1Q 2026.#2- MANEAST bags Soueast agency: The Mansour family’s new venture MANEAST has become the exclusive agent for Chinese Soueast vehicles in Egypt, Al Borsa reports. RETAIL-New retail media solutions coming to Carrefour: Majid Al Futtaim’s retail media network Precision Media partnered with ArabyAds’ retail media tech company Ritelo to roll out omnichannel advertising across Carrefour’s platform in Egypt and Saudi Arabia, according to a press release.

Brace yourselves for a difficult day of doing business in Omm El Donia, wonderful people: Internet access is still severely curtailed across the country in the wake of a fire at Telecom Egypt’s Ramses central communications hub yesterday. The outage has impacted everything from mobile internet to voice connectivity and banking services since late afternoon yesterday. TE staff and government officials worked overnight to re-route traffic to other hubs, but we still have less than half Egypt’s usual “allocation” of bandwidth left to serve every business and individual consumer nationwide. Fixed-line and mobile broadband, data service on handsets, voice calls — it’s all being impacted. When will it end? Officials have been saying (for hours) that we’ll be back online “in hours.” An outage of this type is highly unusual and a difficult technical problem to solve, so we think you’d best brace yourselves for a challenging day to come. One TE engineer we spoke with suggested it could still be “days” before connectivity returns to normal even with all of the state-owned telecoms giant’s top resources being thrown at the problem. Have a good thought for the TE and MCIT teams trying to get us all back online, folks.Do you have connectivity right now? Have an important meeting coming up later today with someone outside the country? You might want to think about dropping them a note letting them know what’s up — and be prepared to reschedule to tomorrow. This is why our lawyers force us all to put force majeure clauses in our contracts.Frustrating? Sure. Or maybe all of you kids out there pining for a magical, pre-interwebs “1980s summer” can just sit back and think that you’re in your personal Hot Tub Time Machine and enjoy the ride? ^^ We have a rundown of all the details as of 5:55am in this morning’s news well, below. WATCH THIS SPACE- We’re looking to increase our imports of Israeli gas by 200 mcf/d to meet rising summer demand, a government source told EnterpriseAM. Though an agreement is in place to boost supplies to both Egypt and Jordan, flows remain at their usual seasonal level of 800-850 mcf/d due to high domestic consumption in Israel. Talks are expected to resume soon to activate the agreed increase, especially as Egypt works to strengthen its regasification infrastructure. There is also a possibility of bringing in a fifth floating regasification unit to support industrial and power sector needs, a separate source told us.ICYMI- Egypt has secured gas supplies to all sectors through four floating storage and regasification units this summer, with a combined capacity of 2.7 bcf/d, the Oil Ministry confirmed earlier this week. INFLATION WATCH- Inflation seen easing slightly in June: Annual headline inflation is forecasted to have dipped 0.6 percentage points in June to 16.2%, down from 16.8% in May, according to a median forecast of 15 analysts polled by Reuters. The rationale: “It's mainly driven by fluctuating food and beverages prices which overall contribute the most to the change in the CPI index reading,” Thndr Securities Brokerage’s Chief Equity Strategist Amr El Alfy told the newswire.But brace for a pickup in July: “We expect some inflationary pressures in July as the Egyptian Parliament approved some amendments to the VAT Law for some businesses, including cigarettes and tobacco,” said HC Securities’ Heba Monir. “Cigarette prices are expected to increase by c.16% within days besides a potential increase in electricity prices due to higher natural gas prices.”PSA- WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 24°C, according to our favorite weather app.It’s a little cooler in Alexandria, with a high of 31°C and a low of 22°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 ** DID YOU KNOW that we now 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- Most of the attention has returned to the revival of US President Donald Trump’s trade war, as the US began sending countries letters, including Japan and South Korea — two of the US’ biggest trade partners — with their reciprocal tariffs, with the two Asian countries getting hit with a 25% tariff as of 1 August. Others like Kazakhstan, Myanmar, and Laos were slapped with a 40% tariff. The letters reportedly hinted at the potential for trade talks to resume, possibly even beyond the 1 August deadline, but also threatened a tariff hike in case tariffs are raised on US exports. (Reuters | Bloomberg | Financial Times | CNN) ALSO- Trump threatens 10% tariff on Brics-aligned nations: Trump said that countries aligned with the “anti-American policies of Brics” will face an extra 10% in tariffs with “no exceptions” in a post on Truth Social. The warning followed a joint statement (pdf) by Brics leaders criticizing tariff hikes, deeming them a threat to global trade and inconsistent with World Trade Organization regulations. A source familiar with the matter later downplayed the threat, saying it’s not a blanket threat against Brics nations, but on any of the countries agreeing policies deemed “anti-American.” (Reuters)Meanwhile, Israeli Prime Minister Benjamin Netanyahu was hosted by Trump at the White House, with talks focusing on the potential ceasefire Trump hinted could be reached this week. (Reuters) AND- The death toll from the floods in Texas — now deemed one of the deadliest in the country’s history — has exceeded 100 as search efforts continue. (Guardian | Wall Street Journal | New York Times) *** 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 the move to raise feed-in tariff for sanitary landfill-, sewage waste-derived energy in a bid to boost investor appetite.

Ashry Steel Group plans to build a USD 200 mn billet plant in its Sixth of October complex, targeting an annual production capacity of 1 mn tons, Chairman Ayman ElAshry told EnterpriseAM. Production is expected to begin within 24 months of construction, pending the Industrial Development Authority’s (IDA) green light.The group is building what will be Egypt’s second-largest industrial complex dedicated to colored sheet metal production, Al Borsa reports, citing what it says are sources familiar with the investment. The facility — located on a 165k sqm plot in Sadat City — will feature state-of-the-art production lines for hot rolling, cold drawing, galvanizing, and color coating. Investments in the production line are projected to reach hundreds of mns in foreign currency.More in the pipeline: The company plans to establish Egypt’s first local factory for high-speed train wheels, also in Sadat City. The project is being implemented in partnership with the Transport Ministry and the Egyptian National Railways, with the aim of localizing industrial technology and reducing import dependence.It’s all part of the plan: Ashry Steel Group is eyeing up to EGP 10 bn in new investments to ramp up production capacity to 4 mn tons over the next two years. Its pipeline also includes a seamless stainless steel pipe plant with EUR 600 mn in planned investment. The IDA has yet to launch the new tender for billet manufacturing licenses but is expected to do so later this month, a government source told EnterpriseAM, adding that companies are outlining production plans based on earlier bids. Mohamed Hanafy, head of the Chamber of Metallurgical Industries, confirmed the licenses haven’t been announced yet but said companies that participated in the 2021 tender will be eligible to bid again once the new tender opens.REMEMBER- The government is ramping up efforts to localize steel manufacturing, issuing new billet production licenses, reallocating surplus supply, and coordinating closely with sector players to draft unified industrial policies for iron manufacturing.IN OTHER MANUFACTURING NEWS- KCG Textile expands local operations: KCG Textile Egypt — a local subsidiary of Turkish group Kucukalik — has broken ground on its spinning factory in Tenth of Ramadan, bringing its total investments in Egypt to USD 75 mn, according to a statement from the Investment Ministry. The plant includes five production lines covering polyester yarn production, textile production, dyeing, and embroidery. A major export player: KCG currently generates around USD 65 mn in annual exports, with 100% of its output shipped to Europe, the US, and China. The company employs some 1.6k workers.

ENERGY- Egypt has secured gas supplies to all sectors through four floating storage and regasification units this summer with a combined capacity of 2.7 bcf/d, the Oil Ministry said in a statement. The move comes as part of the plan to enhance the country’s gas infrastructure and ensure stable supplies to the electricity sector and energy-intensive industries.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The lineup includes the soon-to-be replaced Hoegh Galleon, already stationed at Ain Sokhna since last year, the recently arrived Energos Eskimo and Energos Power, which will be moored at the SUMED and Sonker terminals in Sokhna, alongside Winter, likely the unnamed Turkish vessel, which will operate at the United Gas Derivatives Company berth in Damietta. We are also working with Jordan to add a fifth vessel to the lineup: The Energos Force, currently en route to Damietta, will dock at the port of Aqaba and will be connected to the Arab Gas Pipeline by the end of July. The unit will provide an additional 750 mcf/d of regasification capacity that can be shared between the two countries in the event of an emergency.#2- Firms compete for North July oil concession: Three energy firms — UAE’s Dragon Oil, drilling giant Ades Holding, and local energy player Cheiron — are vying for the North July oil field concession, located northeast of the Gulf of Suez, a government official told Asharq Business. The field is located near the Gulf of Suez Petroleum Company’s production facilities.IN CONTEXT- The Oil Ministry has just closed its latest bidding round for upstream concessions in the Mediterranean, Gulf of Suez, and Western Desert through the Egypt Upstream Gateway. The round included blocks under the jurisdiction of EGAS (Rahmat), EGPC (North July), and GANOPE (North El Baraka, East Gabal El Zeit, and Southeast Ras El Ash), according to a statement. The ministry is expected to announce award results in August. DATA POINT- Egypt aims to grow oil production by 8% y-o-y in the fiscal year 2025-2026 to reach 485k bbl/d, another government official told Asharq Business.MANUFACTURING- Digitize’s board approved a partnership with China’s Inspur for a USD 50 mn manufacturing project, which would see the company locally produce advanced communication devices and implement fiber optic projects, the tech-focused direct investment firm said in an EGX disclosure (pdf).NBFS-FRA ups expat ins. coverage 150%: Egyptians working abroad can now access accident ins. coverage of up to EGP 250k — up from EGP 100k — under an expanded personal accident policy developed by the Financial Regulatory Authority (FRA) in coordination with the Foreign Ministry, according to a statement from the regulator.How it works: The policy offers financial compensation in cases of natural or accidental death or permanent disability while abroad. It also covers repatriation costs up to EGP 250k, or the equivalent cost of repatriation if burial takes place overseas.

RETAIL- US tobacco giant Philip Morris hiked prices by up to 10.5% for its cigarettes and heated tobacco products, effective 1 July, the company said in a statement to distributors seen by EnterpriseAM. The price of a pack of its higher-end Merit cigarettes was hiked 10.5% to EGP 105, Marlboro prices increased 9.0% for the standard pack to EGP 97, and the cheaper L&M brand will now go for EGP 76, up 10.1%. Its Terea heated tobacco products are up 10.1% at EGP 76 a pack.(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 news comes days after the House greenlit a government-drafted bill amending the VAT Law, which will raise the tax on local and imported cigarettes.TOURISM-Egypt earmarks EGP 2 bn for charter flight incentive: The Madbouly government is set to invest EGP 2 bn (USD 40 mn) in its charter flight incentive program this fiscal year, with the figure going toward subsidizing vacant seats on charter flights in a bid to boost tourism, Al Arabiya reports, citing a government document. The initiative is backed by the Tourism Ministry, which is looking to increase non-scheduled, or charter, flights to bolster inbound traffic to the country. The program covers most Red Sea airports, as well as those in Luxor, Aswan, Borg El Arab, and El Alamein.Over 85% of tourists arriving to Egypt travel via charter flights, former tourism minister Hisham Zaazou told the news outlet, underscoring the value of incentivizing charter flights.SOUND SMART- Charter flights are operated based on demand from clients, such as tour operators or hotel chains. The seats on chartered flights are usually sold as part of an all-inclusive holiday to passengers.DATA POINT- The country’s air traffic is forecast to increase to register over 190 aircraft per week in July, which is estimated to boost hotel occupancy rates during the month by 5 percentage points m-o-m to 90%. ENERGY- State-led JV Alexandria for Supply Chain Company is set to welcome another state entity to the liquefied ethane gas import initiative, with the Transport Ministry’s Holding Company for Maritime and Land Transport (HCMLT) bid to acquire 10% of the company approved by shareholders, Al Arabiya reports, citing an unnamed government official. The Egyptian Ethylene and Derivatives Company (Ethydco) will also join the company’s shareholders at a later date, acquiring a part of Egyptian Petrochemicals Holding’s (Echem) 37.5% stake, according to the source.REMEMBER- The Alexandria for Supply Chain Company is a USD 660 mn joint venture aimed at setting up a permanent offshore facility at the Dekheila Port in Alexandria that was launched in August last year. The company aims to import 1.1 mn tons of liquefied ethane gas a year, ensuring a steady supply of raw materials for the petrochemical industry in the region.What’s next? A general assembly will be held in the coming days to give the final green light, according to the source. Who owns what? Assuming HCMLT gets the go-ahead, Echem will hold a 37.5% stake, Sidi Kerir Petrochemicals will own 22.5%, the lone private sector partner Gamma Construction will have 20%, and each of the Egyptian Natural Gas Company and HCMLT will have 10%.MINING-Elsewedy Capital inked an MoU with the Egyptian Mineral Resources Authority (EMRA) to explore and produce phosphate ore at the Sebaeya mines in the Nile Valley, according to a statement. The agreement also allows for the possibility of Elsewedy Capital or its affiliated companies to enter future negotiations to set up joint ventures for exploration and production. The move is part of the government’s push to raise the mining sector’s share of GDP to 5-6% from less than 1% currently.A phosphate fertilizer plant could also be in the works, as the agreement includes a feasibility study for the facility.

“Egypt was one of the biggest economic losers of the Middle East’s 12-day war,” reports Reuters in a deep dive contrasting how post-Zohr discovery hopes of becoming a regional energy exporter and our now rising import bill to keep the lights on this summer. The sudden halt in Israeli gas imports that forced emergency reallocations and factory shutdowns, as the country scrambled to stabilize power generation ahead of peak summer demand, “highlights Egypt's vulnerability and fading hopes that the Eastern Mediterranean could become a major gas exporting region,” according to the newswire.

Good morning, all. We lead today’s issue with fresh tax amendments, after the House approved amendments to VAT Law on selected items, and news of a USD 658 mn phosphoric acid production plant on the way. PSA- The CIT Ministry will begin accepting applications for licenses to manage and operate citizen service centers from 6-31 July at its Smart Village HQ, the ministry said in a statement. Permits to operate within existing licensed centers will also be on offer. WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 25°C, according to our favorite weather app.It’s a little cooler in Alexandria, with a high of 31°C and a low of 22°C.** 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.ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how Egypt’s recent gas crunch strained the industrial sector. Check out the story here. Mark your calendar for the 2025 EnterpriseAM Egypt Forum, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterpriseadvisory.com to explore sponsorship opportunitiesWATCH THIS SPACE- Israeli natural gas exports to Egypt have increased to 650-750 mn cubic feet per day (mcf/d) starting this week, a government source told EnterpriseAM. After Israel restarted Egypt-bound exports with the reopening of its Leviathan gas field on Wednesday, limited exports only amounted to less than 200 mcf/d and were expected to gradually rise to 850 mcf/d over the coming two months, a government source previously told EnterpriseAM.SPEAKING OF- Abu Qir Fertilizers and Misr Fertilizers Production Company (Mopco) will gradually restart operations at their plants following the resumption of natural gas supplies, according to an EGX disclosure (pdf) from Mopco and another disclosure (pdf) from Abu Qir.REMEMBER- Authorities earlier this month temporarily reduced gas supplies to several energy-intensive sectors — including iron, fertilizers, petrochemicals, and aluminum — to prioritize power generation, following the dip in Israeli natural gas imports. In response, the two fertilizer manufacturers earlier this month said they were embarking on intensive maintenance plans at their factories while operations were halted. The local wheat collection season could come to a premature close, as the government has already begun shutting down some local wheat collection centers, Reuters reports, citing a document from the Supply Ministry. The move comes as purchases are falling short of the government’s local wheat collection target, which the newswire said was set at 4-5 mn tons from the total estimated 10 mn tons of domestic wheat production. Despite the drop in domestic supplies, import volumes also declined during the first half of the year, compared to last year, the newswire reports, citing unnamed officials.Only 3.9 mn tons have been collected on the back of low volumes being delivered by local farmers, Reuters reports, citing a separate government document. The local wheat harvest season, which began in mid-April, typically runs through mid-August, but remaining centres may shut their doors if they don’t receive any wheat for 3-5 days in a row, according to the document cited by Reuters.DEBT WATCH- The Central Bank of Egypt sold EGP 119.1 bn worth of EGP-denominated t-bills during an auction yesterday, according to data from the central bank. The CBE sold EGP 68.4 bn worth of six-month t-bills — nearly double its EGP 35 bn target — and EGP 50.7 bn worth of one-year t-bills. Bills were sold at lower yields than those offered last week — the six-month bills were sold at an average yield of 27.15%, down from last week’s 28.27%, and the one-year bills were sold at an average yield of 24.99%, down from last week’s 25.23%. 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- Egypt will host a G20 meeting on regional and global food security in September, according to a statement from the Foreign Ministry. The decision to let Egypt — which is not a member state of the G20 — host the meeting “underscores the added value Egypt represents in G20 discussions, the priority given to economic diplomacy in Egyptian foreign policy,” said Assistant Foreign Minister Ragy El Treby.Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.THE BIG STORY ABROAD- Israel’s attack on Iran’s Evin Prison killed dozens: Israel’s attack on Tehran’s Evin Prison last week killed 71 people, Iranian judiciary spokesperson Asghar Jahangir confirmed yesterday. The prison holds political prisoners and foreigners, marking a shift from Israel’s attacks on military and nuclear sites. Victims included administrative staff, military conscripts, detainees, visiting family members, and nearby residents. (Reuters | New York Times | Associated Press | France24)AND- Another DeepSeek? Chinese tech giant Baidu will open source its Ernie generative AI model today, in what experts are calling China’s biggest AI move since DeepSeek. While some analysts see it as a challenge to US giants like OpenAI and Anthropic, others say its global impact will hinge on security concerns and market trust. “Baidu just threw a Molotov into the AI world,” Epic Loot founder Alec Strasmore told CNBC, adding that it could trigger a price war in AI services.*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed. In today’s issue: We break down the cabinet-drafted amendments to the Education Law that the House received yesterday.

Israel is gradually resuming natural gas exports to Egypt from its Leviathan field at a reduced volume of less than 200 mn cubic feet per day (mcf/d) — down from the 800 mcf/d of flows recorded in the week before Tel Aviv shuttered its offshore fields earlier in the month — a government source told EnterpriseAM. Supply is expected to hit 850 mcf/d in July and August — down from the 1 bcf/d that would have been supplied at full capacity for this period — before returning to normal levels later in the year.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)REMEMBER- Israel once again halted Egypt-bound natural gas exports last Sunday as the US launched strikes on Iranian nuclear sites. Israel had only just partially resumed gas exports the Thursday before, after a six-day pause in exports that began when the war started between Israel and Iran.What does this mean for factories? The government has restarted gas supplies to Mopco, Abu Qir Fertilizers, and a host of factories late last week, industry sources told EnterpriseAM. The government is also reportedly weighing an increase in domestic gas prices for industries to offset the mounting cost of importing LNG from international markets, Al Arabiya reports, citing unnamed sources.ICYMI- Authorities had temporarily reduced gas supplies to several energy-intensive sectors — including iron, fertilizers, petrochemicals, and aluminum — to prioritize power generation. The move pushed local fertilizer companies to suspend operations.The halt to supplies led unsubsidized fertilizer prices to jump some 40% last week, Al Arabyia reports. The reduction in gas supplies also led to reduced production of subsidized fertilizers, unnamed sources told the outlet.IN OTHER ENERGY NEWS-#1- Eni and its state partners have brought online an additional 60 mn cubic feet per day (mcf/d) in the Zohr field through the drilling of a new well, according to a statement from the Oil Ministry. Flows from the Zohr 6 well will be followed a further 55 mcf/d from the Zohr 13 well following drilling, according to the statement#2- Egyptian Natural Gas Holding Company awarded six new exploration blocks spread across the Mediterranean and onshore blocks in the Delta and North Sinai, according to an Oil Ministry statement. Chevron, Shell, Eni, Cheiron, IPR, and Perenco are expected to invest USD 245 mn in the blocks and develop at least 13 exploratory wells.

MANUFACTURING- #1- Turkey’s Şirikçioğlu will establish a USD 20 mn denim factory in the Qantara West Industrial Zone, according to a statement from the Suez Canal Economic Zone. The factory will create 500 direct jobs and roll out 18 mn tons of raw materials for the textile industry per year — split equally between export and factories in Egypt.#2- Two undisclosed Turkish companies are reportedly looking to acquire Egyptian businesses in the spinning and weaving industry for a combined USD 30 mn, Fathalla and Company Managing Partner Mohamed Fathalla told Al Borsa.Some 20 Turkish firms have applied to set up shop in the Suez Canal Economic Zone in the past six months — including 19 in the apparel sector and one in food processing, Fathallah said. Turkish garment manufacturers have been doubling down on Egypt over the past year, with around 500 firms reportedly expressing interest in relocating operations here, eyeing some USD 5 bn in aggregate investment. At least 50 companies have already taken early steps, including forming legal entities and submitting land allocation requests.LOGISTICS- Egyptian-Sudanese logistics zone incoming? Egypt and Sudan inked a contract to establish a logistics zone on the border crossing between them, Sudanese Ambassador to Egypt Imad Al Din Adawi told Asharq Business. The project aims to boost trade between the two neighboring countries. The details: The zone will include dry and refrigerated storage facilities, as well as banks and financial institutions to facilitate commercial agreements between the two sides. The Arab Academy for Science, Technology, and Maritime Transport completed a comprehensive study on establishing the zone, which will be presented in November, according to a statement from the Sudanese Embassy in Cairo.AUTOMOTIVE-GB Auto launched the first locally-assembled Changan CS55+ model, marking “the first completely knocked down model from the Chinese brand to be assembled in the Egyptian market, according to disclosure (pdf) to the EGX. EXPANSION-Paragon Developments opened its first regional office in Riyadh to tap into the Kingdom’s real estate market, the local developer said in a statement. The company is also planning to deliver 200k sqm of office space by 2027 and 500k sqm by 2030.ENERGY- The North Bahariya Petroleum Company (Norpetco) is implementing a USD 100 mn investment plan, which has already increased output over 16k barrels per day, according to an Oil Ministry statement. Norpetco has also increased its crude storage tank capacity to 75k barrels and launched two new infrastructure projects.M&A WATCH-Pelican Diversified Investments cut its stake in EGX-listed Premium Healthcare Group to 4.1% from 11.6%, according to an EGX disclosure (pdf). The investor sold some 60.6 mn shares for a total of EGP 11.6 mn, with an average price of EGP 0.19 per share. The Commercial International Brokerage Company was the broker on the transaction.

AUTOMOTIVE- Locally-assembled Sandstorm-branded vehicles? Local automotive player Abou Ghaly Motors plans to invest USD 26 mn to set up a factory in the north of the Gulf of Suez to assemble models from the UAE’s Sandstorm Motor Vehicles Manufacturing, a company official told Asharq Business.The company has already invested 40% of the total amount since the beginning of the year and plans to complete the remaining investment by year-end. Production is scheduled to begin in 1Q 2026, and the company plans to dedicate the factory’s entire production capacity to exports, with a focus on African markets.Sandstorm made its manufacturing debut with the UAE’s first ever locally made SUV — the Sandstorm Alreem, which was designed with the country’s hot and desert climate in mind. We’re yet to find out what models Sandstorm is planning to roll out from Egyptian assembly lines, but it could also include its planned pickup truck in the works: the Sandstorm S24.** It has been brought to our attention that the news published by Asharq Business is inaccurate.  ENERGY-New awards to drill at least 17 exploration wells: The Oil Ministry has awarded seven new exploration and production blocks affiliated with the Egyptian General Petroleum Corporation, according to a ministry statement. The new awards will see firms funnel fresh investments into the blocks and bring at least 17 new wells online. Cheiron, Apache, Pharos Energy, IPR Energy, and a consortium of Egypt’s NPC Energy and UK-based GHP all secured blocks.More up for grabs: Other explorations — including undeveloped Mediterranean fields and new blocks in the Gulf of Suez and Western Desert — remain open, with bids due by 2 July. The ministry is expected to announce four additional Mediterranean block awards soon under the Egyptian Natural Gas Holding Company’s latest bid round.TRANSPORT- A new digital parking management system in Cairo is here: Cairo Governorate launched a new digitized system to regulate informal parking attendants, requiring them to be registered with companies contracted with the governorate to manage parking spaces, according to a statement from the governorate. All parking areas are getting integrated into an official framework, preventing unauthorized fees and providing clear pricing — capped at EGP 10 for the first hour, with lower rates for the second hour.

Good afternoon, all. We’re racing towards the final stretch of the week and into the weekend.THE BIG STORY TODAY- Israel may restart natural gas supplies to Egypt as early as Thursday, but domestic demand will continue to take priority over exports, Bloomberg reports, citing Israeli Energy Minister Eli Cohen.BACKGROUND- Over the weekend, Tel Aviv shuttered the Leviathan field as well as the Karish field in the wake of military strikes on Iranian targets, taking away 800 mcf/d from our national gas grid. Reduced gas flows from Israel not only mean an increased reliance on significantly more expensive LNG or Mazut imports, but also put a significant strain on Egypt's efforts to keep the lights on ahead of high-demand summer months.THE BIG STORY ABROAD-Wide-ranging speculation is mounting over potential US military involvement in Israel’s ongoing war with Iran, as Donald Trump calls for Tehran’s “unconditional surrender” and weighs options that include targeting nuclear sites. The prospect of direct US strikes has triggered panic in Tehran, where thousands are fleeing the capital amid Israeli calls to evacuate areas ahead of air raids. Iran, which has fired hundreds of missiles at Israel since Friday, has warned it will retaliate against US military assets if Washington joins the fight. (Bloomberg | Reuters | The Washington Post) Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ☀️ TOMORROW’S WEATHER- The capital is in for a sunny day tomorrow, with the mercury set to peak at 37°C throughout the day before cooling down to 22°C at night. The North Coast will be experiencing cooler weather, with the temperature expected to reach just 29°C during the day and 20°C at night, according to our favorite weather app.

Egypt’s electricity sector is shifting gears: With rising demand, cost pressures, supply chain bottlenecks — courtesy of regional tensions — and growing ambitions to become a regional energy hub, the Madbouly government is doubling down on its 2030 electricity strategy. The strategy document, seen by EnterpriseAM, focuses on ensuring universal access to electricity at competitive prices, sustainably and with minimal environmental impact.Why it matters: After years of capacity expansion, Egypt is now prioritizing resilience, efficiency, and affordability. Recent FX volatility, rising import costs, and gas production challenges have made energy policy a core part of Egypt’s economic strategy — and key to attracting investment.Part of a wider plan: The government's 2030 energy strategy is designed to support the country’s broader Vision 2030 goals of improving quality of life, spurring economic growth, and ensuring energy security.The main goals: The strategy aims to see the country using diverse sources of electricity generation, achieving universal grid coverage, and localizing the production of electrical equipment to reduce import costs. The plan also ties into Egypt’s broader ambition to become a regional energy hub.Modernizing Egypt’s power grid: The government plans to expand high- and ultra-high-voltage transformer stations and upgrade medium- and low-voltage distribution systems to absorb growing demand and ensure full grid coverage. The government is also continuing electricity sector restructuring efforts to boost service quality and promote efficient energy use. Ensuring affordable energy access for lower-income citizens and electrifying rural areas are also central to the strategy.The private sector will play a bigger role: New public-private partnerships (PPP) mechanisms are being rolled out to attract investment — particularly in renewables — in line with global best practices. The goal is to boost the sector’s contribution to GDP, exports, and job creation. The government also wants to scale up nuclear energy’s percentage in the mix.Thermal power continues to dominate the energy mix: Despite efforts to increase renewables’ share in the country’s energy mix, gas- and fuel oil-powered thermal plants remain the primary source of electricity in the country. By the end of 2024, thermal power accounted for 56.5% of the country’s energy mix, with hydroelectricity making up the second biggest share. How did the sector fare over the past decade? Between the fiscal year 2013-2014 and FY 2023-24, installed capacity grew 93.7%, reaching 62 GW and renewable capacity rose to 7.7 GW, marking a 120% increase from a decade earlier. Looking at consumption, households accounted for 37% in FY 2023-24, followed by industry (27%), and commercial use (16%).Investment and output targets are rising: The government wants to see the electricity and renewables sector increase its output to EGP 655.6 bn at current prices in FY 2025-26, rising gradually to EGP 984.5 bn by FY 2028-29 — at an annual growth rate of 15-20%. It plans to increase investments in the sector to EGP 136.3 bn in the next fiscal year — up from EGP 72 bn this year. Private investment will account for 27% of total investments in the sector, with the state contributing the rest. State-owned companies will receive around EGP 100 bn of the public component.Powering up new communities and megaprojects: Universal electricity coverage is a top priority for the upcoming fiscal year. The government is pushing ahead with projects to ensure reliable service to urban centers, residential areas, and strategic national developments. The coming year will see work continue or begin on a wide slate of power supply projects across the country. This includes completing grid connections for agricultural development zones in a handful of areas, finalizing electrification of East Owainat and Toshka, providing power for key national transport projects, securing grid access for northwestern and southeastern coastal areas, and connecting water wells in North and South Sinai’s development zones to the national grid.Improving power distribution: The government is ramping up efforts to improve the national transmission and distribution network. The aim is to expand capacity, enhance efficiency, and ensure better service delivery for residential and commercial users. Infrastructure and capacity targets for FY 2025-26 include:Relocating electricity infrastructure conflicting with road projects;Expanding the 220 kV transformer stations in North Sinai;Continuing the national program to replace overhead lines with underground cables;Expanding transformer stations in Tenth of Ramadan and Zahraa Nasr City;Completing construction of the new Mallawi transformer station and rehabilitating Matariya’s.Targeted KPIs for the year include: Raising population coverage to 99.8%, increasing annual electricity generation to 235 TWh (from 229 TWh in FY 2024-25), adding 1.2 GW in new thermal generation capacity, cutting network losses to 16.5% from 19%, adding nine new 500 kV transformer stations, and increasing electricity exports to 3.9 GW.Clean energy will shoulder more of the load: The state aims to raise renewables’ share in the energy mix to 20% in FY 2025-26 — up from 12% the year before — and eventually to 42% of the country’s total energy mix by 2030. To that end, the state is investing heavily in wind and solar, planning to add 4 GW of solar and wind capacity to the grid by this summer, and expanding the area allocated to renewables to 2.9k sq km and targeting 6.47 GW of new capacity. As things stand on the renewables front: Some 80 solar stations with a capacity totalling 11 MW are already connected to the grid, and work is underway to connect 200 more stations, with a capacity totalling 34 MW.Securing low-cost, clean energy for the long haul: The strategy aims to ensure reliable and affordable electricity through offering more incentives to private investors in electricity and renewables, localizing component manufacturing to reduce imports and foreign currency outflows, and maximizing the use of local hydro, solar, and renewable resources.As part of its efforts to diversify its energy resources, Egypt is pressing ahead with the Dabaa nuclear project, with the first reactor’s core set to be received and installed this year. The country is also looking to expand hydropower generation and begin development of floating solar stations.The long game — smarter energy use: The 2035 Integrated Sustainable Energy Strategy targets an 18% reduction in electricity consumption across all sectors through smart grid investments, nationwide rollouts of energy-efficient lighting systems, and incentives for households to switch to high-efficiency appliances.

Phase 11 of the West Delta Deep Marine concession is set to go live next month, bringing an additional — and very much needed — 100 mn cubic feet per day (mcf/d) of natural gas, an unnamed government source told Al Arabiya Business. Production will begin with two wells — Sparrow with 60 mcf/d and Sinad with 40 mcf/d — while a third well is currently being fast-tracked for tie-in to the national gas grid before the end of 3Q, with an initial output of 50-60 mcf/d. The expected quantities of gas will help meet about 1.6% of the country’s average summer demand and about 1.4% in the most energy demand-intensive periods. Egypt’s natural gas output currently stands at around 4.2 bcf/d, well below average summer demand of 6.2 bcf/d — the figure climbs to 7 bn cf/d during peak consumption months.With the Leviathan shut-off and the risk of more energy disruptions to come, we need increases in domestic production now more than ever. Over the weekend, Tel Aviv shuttered the offshore field as well as the Karish field in the wake of military strikes on Iranian targets, taking away 800 mn cubic mcf/d from the national gas grid. Reduced gas flows from Israel not only mean an increased reliance on significantly more expensive LNG imports, but also put a significant strain on the country’s efforts to keep the lights on ahead of high-demand summer months.BACKGROUND- Burullus Gas — a JV between Shell Egypt, EGPC, EGAS, and Petronas — is the operator of the concession. Phase 11 follows the completion of phase 10, where the three wells were added to the production map with a combined output of 160 mcf/d of gas and 2k barrels of condensate per day, the source added.Shell alongside Petronas is investing some USD 300 mn into the 11th phase of the concession, while elsewhere it’s exiting its two Egyptian Red Sea exploration blocks, we heard in March.AND- Eni is aiming to begin production from the Zohr 6 well before the end of the month, with initial output estimated at 40-50 mn cubic feet per day, an unnamed government source told Al Arabiya Business. The Italian energy giant is accelerating development through Petrobel — its JV with Egyptian General Petroleum Corporation — to meet rising domestic demand.

Global equities rebounded yesterday as investors recalibrated after a bruising start of the week triggered by the escalation of strikes between Iran and Israel. The MSCI Emerging Markets Index rose nearly 1% on Monday, led by gains in GCC equities, while European and US stocks also posted gains. While the rebound reflects cautious optimism, tail risks remain firmly in place.In Europe: The pan-European Stoxx 600 edged up 0.4%, led by a rally in energy and banking names, CNBC reports. The UK’s FTSE also rose to a near record high, closing up 0.3%. US stocks also rebounded due to speculation over a possible truce between Israel and Iran, with the S&P 500 up 1% and the Nasdaq gaining 1.5%. Middle East equities also joined the global rally, paring back some of the losses they made earlier this week and last Friday. The DFM gained 0.8%, ADX rose 0.2%, TASI was up 1.3%, and Egypt’s EGX30 inched up 0.1%. The geopolitical premium was on full display in energy markets: Brent erased earlier gains to trade just below USD 75, paring back losses after last week’s 7% surge. Oil options volumes soared on Monday, with traders snapping up bullish Brent calls at USD 80 and USD 100, Bloomberg reported separately. Brent’s futures curve steepened into backwardation, suggesting fears of near-term supply shocks, especially if tensions escalate toward the Strait of Hormuz, through which 17 mn barrels per day of oil pass.Despite calmer price action, the “margin for safety is getting ever narrower,” strategist Robin Mills wrote for the National. Despite the rebound, forecasts point to a weaker year for US equities. RBC Capital Markets warned that the S&P 500 could drop up to 20% to 4.8k if higher oil prices drive inflation past 4%, earnings stall, and the Fed only cuts rates twice, Bloomberg reports. Even in a more benign scenario, the bank sees 13% downside from current levels. Other analysts, like Morgan Stanley’s Michael Wilson, remain cautiously optimistic on corporate earnings.The bottomline? The rebound signals some relief, but the market’s risk appetite is still constrained by oil price volatility, geopolitical uncertainty, and policy recalibration. For now, investors are hedging hard and staying nimble.MARKETS THIS MORNING- Asian markets are also on the rise as investors’ attention splits between hopes for a potential truce in the Middle East and the Bank of Japan’s interest rate prospective move. Japan’s Nikkei is up 0.5%, while South Korea’s Kospi gained 1.1%, and Hong Kong’s Hang Seng was up 0.1%. Mainland China’s CSI 300 is flat in early trading. Over on Wall Street, futures fell following yesterday’s rebound. EGX3031,042+0.1% (YTD: +4.4%)USD (CBE)Buy 50.20Sell 50.34USD (CIB)Buy 50.21Sell 50.31Interest rates (CBE)24.00% deposit25.00% lendingTadawul10,867+1.3% (YTD: -9.7%)ADX9585+0.2% (YTD: +1.8%)DFM5407+0.8% (YTD: +4.8%)S&P 5006033+0.9% (YTD: +2.6%)FTSE 1008875+0.3% (YTD: +8.6%)Euro Stoxx 505340+0.9% (YTD: +9.1%)Brent crudeUSD 73.23-1.4%Natural gas (Nymex)USD 3.74-0.3%GoldUSD 3414.90-0.1%BTCUSD 108,604.70+3.6% (YTD: +16.1%)S&P Egypt Sovereign Bond Index877.27+0.1% (YTD: +12.8%)S&P MENA Bond & Sukuk144.23-0.1% (YTD: +3.1%)VIX (Volatility Index)19.11-8.2% (YTD: +10.1%)THE CLOSING BELL-The EGX30 rose 0.1% at yesterday’s close on turnover of EGP 3.6 bn (23.8% above the 90-day average). Foreign investors were the sole net buyers. The index is up 4.4% YTD.In the green: Orascom Construction (+5.5%), Edita (+3.3%), and Eipico (+2.3%).In the red: Orascom Development Egypt (-3.2%), Ibnsina Pharma (-2.1%), and Egypt Kuwait Holding -USD (-2.0%).CORPORATE ACTIONS- Raya Holding will pay out a dividend of EGP 0.04 per share for its 1Q 2025 earnings after its general assembly greenlit the move, according to an EGX disclosure (pdf).

The government has given the green light for a tender to import mazut shipments to operate power stations until regasification vessels are fully operational, to ensure continued electricity supply, a senior government source told EnterpriseAM. The initial cost is expected to reach USD 1 bn to import mazut shipments that may reach up to 1 mn tons, with the possibility of using a deferred payment mechanism for additional shipments if the situation persists for a longer period and natural gas suppliers are further impacted, according to our source. To keep the lights on and factories running, the government wants to build a six-month strategic reserve of petroleum products to help cushion us from ongoing geopolitical tensions, our source added.We’re also prioritizing the grid for our mazut and diesel supplies over energy intensive industries — think cement and fertilizers — an unnamed government source told Asharq Business. The two petroleum products will be diverted away from the factories for 14 days until incoming energy imports help fill the fap, saving around 8k tons of mazut a day and in turn helping raising total daily deliveries to power generation plants to 38k tons. Authorities have also suspended 900 mn cf/d of natural gas to energy-intensive industries and cut flows to steel producers to free up supply for the grid.Industry is already feeling the pinch, with Abu Qir Fertilizers and embarking on an intensive maintenance plan for its plants until an improvement in operating conditions, it said in a EGX disclosure (pdf). Misr Fertilizer Production Company is also implementing an intensive maintenance plan for its factories “as a result of the repercussions of the war in the Middle East and the impact on natural gas supplies to the factories,” according to its own EGX disclosure (pdf).Upping our shipments scheduled for summer is also part of the plan, with the government looking to increase its targeted spot LNG shipments through the summer from a previously targeted 60 shipments to 80, our source told us. This is in addition to recently secured agreements for 80–100 LNG shipments annually, with the option to ramp up to 120 cargoes per year if needed at a then USD 0.70 premium over international prices before the recent uptick in global oil energy prices.Four of these additional LNG shipments should be arriving in the next two weeks, after the Egyptian Natural Gas Holding Company secured four additional shipments that will provide some 12 bn cubic feet of gas over a month at a rate of 400 mn cf/d, an unnamed government source told Al Arabiya Business.

Markets reel as Israel-Iran conflict escalates: Stock markets across the region tumbled yesterday as the deepening conflict between Israel and Iran triggered a regional sell-off and fresh fears over energy supply, Bloomberg reports. Egypt’s EGX30 led the losses, falling as much as 7.7% in intraday trading on Sunday — its steepest decline in five years — before trimming losses to 4.6% at market close. The plunge came after Israel halted gas production from its largest offshore field, cutting off supplies to Egypt and stoking fears of a near-term energy crunch in the import-dependent economy. The EGP also weakened further on the parallel market, with local-bank quotes showing trades at around 50.70 per USD yesterday down from roughly 49.80 last week. Oil cushions the blow for Aramco as TASI slides: In Saudi Arabia, the Tadawul All Share Index (TASI) plunged 3.6% at the open, with 243 of 253 stocks in the red, though losses were pared by state-owned oil giant Aramco, which gained 1.7% on the back of sharp rally in oil. TASI ended the day down 1% yesterday. Brent crude prices spiked by more than 7% to settle near USD 73 on Friday, as market prices in the risk of further disruption to Iranian exports. UAE markets also priced in the risk on Friday: The UAE markets, which reopen today, had already closed down on Friday, with the DFM falling 1.9% and the ADX losing 1.3%, in anticipation of a wider fallout. Also from the region: Kuwait’s main index closed down 3.9%, while the Muscat Stock Exchange lost 0.9% and Bahrain’s benchmark dropped 0.8%, respectively. In Tel Aviv, large-cap stocks opened 1.5% lower, though losses were partially offset by a rally in defense contractor Elbit Systems to close 0.5% higher. Airlines and lenders were among the hardest hit across the Gulf, Reuters reports, with Qatar National Bank (QNB) opening down 3.3% on the Qatar Exchange yesterday, and Jazeera Airways shedding as much as 10% on the Boursa Kuwait amid widespread regional airspace avoidance. In the UAE, real estate companies were also impacted, with developers Emaar Properties and Union Properties closing down 3.5% and 6.9%, while Abu Dhabi's Aldar also dropped 3.9%.Zooming out: The latest wave of volatility comes as MENA equities continue to underperform global peers this year, pressured by geopolitical overhang, oil-price swings, and mixed fiscal signals in large economies like Saudi Arabia.MARKETS THIS MORNING- Asian markets are bucking the trend today, with most of them in the green as investors await data out of China. Japan’s Nikkei is up 0.9%, while South Korea’s Kospi is up nearly 0.6%. Hong Kong’s Hang Seng futures indicate a weaker open. Over on Wall Street, futures point to a slightly stronger open after yesterday’s Iran-Israel conflict-triggered sell-off. EGX3031,016-4.6% (YTD: +4.3%)USD (CBE)Buy 50.55Sell 50.69USD (CIB)Buy 50.56Sell 50.66Interest rates (CBE)24.00% deposit25.00% lendingTadawul10,732-1.0% (YTD: -10.8%)ADX9564-1.3% (YTD: +1.5%)DFM5365-1.9% (YTD: +4.0%)S&P 5005977-1.1% (YTD: +1.6%)FTSE 1008851-0.4% (YTD: +8.3%)Euro Stoxx 505290-1.3% (YTD: +8.1%)Brent crudeUSD 74.23+7.0%Natural gas (Nymex)USD 3.58+2.6%GoldUSD 3452.80+1.5%BTCUSD 104,792.80-0.5% (YTD: +12.0%)S&P Egypt Sovereign Bond Index877.27+0.1% (YTD: +12.8%)S&P MENA Bond & Sukuk144.23-0.1% (YTD: +3.1%)VIX (Volatility Index)15.54+15.5% (YTD: +20.0%)THE CLOSING BELL-The EGX30 fell 4.6% at yesterday’s close on turnover of EGP 4.1 bn (14.3% below the 90-day average). Foreign investors were the sole net sellers. The index is up 4.3% YTD.In the red: EFG Holding (-12.4%), Orascom Development Egypt (-11.1%), and GB Corp (-9.4%).

As fears of a broader regional war mount following Israel and Iran trading airstrikes, we take a look at what it all could mean for Egypt. Could disruptions to energy flows, shipping routes, and tourism inflows put pressure on our external position and macro stability, and could we see foreign investors spook? We take a deep dive into the potential economic consequences for Egypt if the hostilities persist or escalate.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The most dangerous confrontation between Israel and Iran in years: After months of heightened tensions between the two, a war of words quickly escalated into an escalating conflict after Israel struck military and nuclear sites on Friday morning, along with targeted assassinations of senior military figures and nuclear scientists. The two have since exchanged missiles and airstrikes over the weekend and show little signs of looking for an offramp, with Iran vowing revenge and Israel threatening even more devastating strikes to come and hitting at regime change.WHAT DOES IT ALL MEAN FOR EGYPT- Exchange rate, inflation, and monetary policy under pressure: HC Securities’ Nemat Choucri told EnterpriseAM that escalations could lead to “supply chain disruptions, which could negatively impact inflation and potentially disrupt the pace of Egypt’s easing cycle.” She added that “oil prices have increased, and Egypt’s Oil Ministry announced that it will need to cut its natural gas supply to some industrial activities.”What does the rise in oil prices mean for us? Banking expert Hany Abou El Fotouh warned that “with rising oil prices, the import bill is likely to increase, which could put pressure on the balance of payments in the short term.” He also noted that while the EGP has held steady for now, “continued tensions could prompt some foreign investors to hedge, which would increase local demand for USD.”We’re trying to secure a strategic energy reserve: Egypt signed a natural gas import agreement over the weekend to build a six-month strategic reserve of petroleum products amid rising geopolitical risks. We have the full story in the news well below.BY THE NUMBERS- Brent crude jumped 7.0% on Friday to USD 74.23 a barrel, marking the largest intraday moves since 2022, Reuters reports. But despite the sudden rise, prices remain in the red y-o-y and well below their 2022 peaks reached a few years back after Russia launched its war on Ukraine. But oil prices could rise further, with Israel now targeting Iranian energy sites: Israel expanded its focus to include Iran’s energy infrastructure yesterday, with a strike on an Iranian natural gas processing facility in the South Pars gas field — the world’s largest. Although the field’s output is primarily for the domestic market, Israel’s turn towards energy targets could add even more volatility to the international energy market.Basic commodity reserves should help the local market stocked and prices in check: The state’s reserve of basic commodities exceeds six months, which should keep products on shelves and at reasonable prices, the Supply Ministry said in a statement. The ministry also said it will be extra vigilant to address any price gouging and to ensure the continued supply of products.Capital markets could see renewed outflows: “We may see some panic selling in treasuries and equities by foreign investors as an initial reaction due to the region’s increased geopolitical risk,” Choucri said. Economist Hany Genena similarly told EnterpriseAM that a “partial exit is likely, which is normal due to fears of FX instability.” However, he dismissed the possibility of a full-blown exit similar to the 2022 hot money crisis, unless key inflows are severely disrupted. “A complete exit is unlikely unless investors start to fear a full halt in tourism revenues, remittances, or other inflows — which seems highly improbable given that both tourism and capital flows held up during far more turbulent periods over the past two years,” Genena told us.Hot money jitters are resurfacing: The current situation has reignited fears of foreign portfolio outflows from Egypt’s local debt market, a government source added. Foreign investors had returned to EGP-denominated local debt last month following a sharp exit in April, supported by the central bank’s easing cycle. The Finance Ministry’s pivot toward longer debt maturities is expected to help mitigate exposure to hot money volatility.A rethink of subsidy reform could be in the cards: One potential outcome of the regional escalations could be a shift in the government’s fiscal strategy. Genena said the situation “could prompt Egypt to submit a request to the IMF to reconsider the current timetable for phasing out fuel and electricity subsidies.” This sentiment was echoed by Abou El Fotouh, who warned that further increases in oil prices “could require a reassessment of some subsidy items or the pricing of petroleum products.”No immediate impact on the Suez Canal but risks remain: While the Suez Canal has not seen disruptions so far, Abou El Fotouh cautioned that “disruptions in regional maritime security or significant rises in ins. costs could temporarily prompt shipping lines to reconsider their routes.” This would derail efforts to bring back global shipping lines to the waterway. Transit receipts from the Suez Canal dropped 62.3% y-o-y to USD 1.8 bn in 1H FY 2024-2025 on the back of Red Sea disruptions that pushed ships to reroute away from the canal.Egypt has some policy space — for now: Despite the risks, Genena suggested that Egypt’s macro position remains stable enough to weather short-term turbulence. “The credit default swap (CDS) spread remains very low at around 5.3%, which gives Egypt room to continue its planned issuances of bonds and sukuk to refinance external debt obligations in 2H 2025.”Sukuk program still on track: While it's still too early to assess how regional escalations will affect Egypt’s upcoming sukuk issuance, a government official told us that the program is moving forward as planned. A pipeline of projects and investments is currently being assembled under a broader local sukuk framework.NUCLEAR SAFETY CONCERNS + EGYPT’S DIPLOMATIC RESPONSE-Radiation risks? Not for Egypt, says nuclear watchdog: The Egyptian Nuclear and Radiological Regulatory Authority (ENRRA) said that radiation levels remain “under control” at Iran’s Natanz nuclear facility — a target site of Israeli airstrikes. “There are no indicators of any radiation leaks so far,” the authority said, citing coordination with the International Atomic Energy Agency and local authorities. ENRRA added that its early warning and monitoring network continues to track background radiation data to ensure public safety.Cairo calls for de-escalation: The Foreign Ministry issued a statement on Friday morning strongly condemning Israel’s airstrikes on Iranian territory, calling the attack “a dangerous escalation that represents a blatant violation of International Law, and a direct threat to regional and international peace and security.” Egypt reiterated its long-standing position that “military solutions are no way to address the region’s crises” and called instead for “respecting the sovereignty and territorial integrity of states” as a basis for peace.Abdelatty warns against chaos in a call with Iran’s FM: Foreign Minister Badr Abdelatty spoke with his Iranian counterpart Abbas Araghchi on Friday to discuss the “dangerous implications” of the Israeli attack. Abdelatty reiterated Egypt’s “rejection and condemnation of violations of state sovereignty” and warned of the risks of “dragging the region into full-blown chaos.”More calls with regional leaders: Abdelatty also spoke with his Qatari, Saudi, and Jordanian foreign ministers, with talks centring around the “grave consequences” of the Israeli escalations and their repercussions on broader regional stability. President Abdel Fattah El Sisi also spoke with Turkish President Recep Tayyip Erdogan yesterday to jointly emphasise the need for deescalation.