Commodities

Chevron and its Israeli Leviathan partners NewMed Energy and Ratio Energies will send 130 bn cubic metres (bcm) of gas to Egypt from 2026 through 2040, under an inked amendment to their existing 2019 gas export agreement with Egypt’s Blue Ocean Energy, according to a release (pdf) from NewMed on Thursday. The agreement is expected to bring in some USD 35 bn worth of gas over the 15-year period.Flows will first increase from 4.5 bn cubic metres in 2025 to 6.5 bn cubic metres as early as 2026 under the first 20 bn cubic meter phase of the agreement, according to the Israeli energy company’s 2Q financial results presentation (pdf). Increased flows will follow the under-construction Ashdod-Ashkelon pipeline being connected to Egypt to enable the larger quantities.Following this, supplies will increase again to 11.5 bn cubic meters in 2029 under the second 110 cubic meter phase of the agreement, then rise again to 12.5 bn cubic metres a year in 2033 before settling to 12.0 cubic meters a year from 2036 onwards. This increase of exported gas is contingent on a final investment decision due 30 September — with the option to extend by six months — by Chevron and its partners to expand the field’s capacity and for operator Israel Natural Gas Lines to decide on capacity allocations for the planned Nitzana pipeline to Egypt.The agreement puts the price of the piped gas considerably below the current market rates for LNG, with gas offtake from Blue Ocean Energy priced at around USD 7.60 per mn British thermal units (BTU), according to calculations by industry publication Middle East Economic Survey (Mees). Despite being up from the previous unamended offtake agreement, this is nearly half of the USD 12-13 per mn BTU that the state is currently paying for LNG imports to bridge the supply gap. REMEMBER- Rising demand at home and a fall in domestic supply has pushed Egypt to increasingly rely on LNG imports to keep the lights on and prevent a return to the days of planned outages. The Madbouly government has secured LNG supply through 2026 at a total estimated cost of USD 8 bn after signing agreements with six international energy companies, a government source in the energy sector previously told EnterpriseAM. The increased gas flows won’t only help close the supply gap, but also help us realize LNG re-export ambitions, a senior source at the Oil Ministry told EnterpriseAM. Egypt will be able to become a regional energy hub by using its liquefaction plants to re-export the gas as LNG to Europe using the planned increase in Israeli imports and the planned imports of Cypriot gas, they added.But Israeli imports aren’t without risk, with imports prone to sudden halts on the back of Israeli military action in the region leading to the shutdown of exports several times this year, which led to the cutting of supplies to key energy-intensive industries. Public outrage over Israel’s assault on Gaza and rising diplomatic tensions between Cairo and Tel Aviv also lend themselves to an uneasy partnership. The big-ticket agreement also caught the attention of the international business press, including the Financial Times, Bloomberg, and Reuters.ALSO- The Egyptian General Petroleum Corporation has cancelled seven mazut shipments amounting to some 2.2 mn barrels, which had been scheduled to arrive this month, Asharq Business reports, citing unnamed sources. The shipments that were secured in June after Israel briefly halted supplies during its war with Iran were then later cancelled due to the country having bridged its supply gap with LNG contracts and the resumption of Israeli gas imports.

The Madbouly government is looking to boost local investment in the oil and gas sector in efforts to restore production to previous levels, a government source told EnterpriseAM. The government is weighing fresh incentives for local investors, the source added. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Local companies are set to take part in an upcoming Oil Ministry tender, covering new fields and fresh exploration areas — including blocks being offered for the first time — as well as mature fields slated to be put back on the market. We have an idea which companies will be involved: A Hassan Allam Holding-Infinity Power consortium, Ezz Steel, Elsewedy Industrial Development, and Ades Holding last year inked agreements to ramp up oil and natural gas exploration alongside production and field development. The players will establish specialist subsidiaries to operate in upstream oil and gas. On the foreign side: Egypt has launched an international tender for seismic survey companies to carry out advanced mapping over 100k sqm in the East Mediterranean, as part of efforts to assess gas reserves and accelerate new discoveries, Asharq Business reports citing an unnamed government source The government will not cover the cost of the surveys. Instead, the companies awarded the contracts will recover costs by charging international oil and gas firms for access to the survey data packages, seeing as they are interested in exploration and drilling. Under the tender, more than a single company will be selected, with the target area split into defined blocks to be scanned according to a fixed schedule to speed up the timeline, they said.Small and mid-sized players stand to benefit the most from the survey, the source said, adding that the new data will open up fresh exploration windows in the East Med without requiring them to bear the full cost of seismic work. “Companies will save at least 60% of the cost of conducting their own seismic surveys,” they added. The East Med is Egypt’s most productive natural gas region, accounting for 62% of output, followed by the Nile Delta at 19% and the Western Desert at 18%, Asharq said, citing Oil Ministry data. Some 20 companies currently operate in the East Med.

Good afternoon, friends, and congratulations on making it to the weekend. The news cycle appears to be taking a breather, and we’ve got a brisk issue for you today.THE BIG STORY TODAY- Egypt to import more Israeli gas for USD 35 bn through 2040: Egypt will import an additional 130 bcm of Israeli natural gas under an amended agreement with the Leviathan field partners, in a transaction worth USD 35 bn that extends supply through 2040, according to a press release (pdf). The amended agreement builds on a 2019 contract between Egypt’s Blue Ocean Energy and Leviathan partners Chevron and Ratio Energies.The new volumes will be added in two phases. An initial 20 bcm will be supplied once Israel Natural Gas Lines (INGL) completes the Ashdod-Ashkelon offshore section and the Leviathan partners finish the third pipeline project, raising daily exports to 6.7 bcm annually. A second 110 bcm increment would bring daily exports up to 12.9 bcm per year starting in 2029.For context- The Leviathan reservoir has supplied 23.5 bcm of gas to Egypt since production began in 2020, under a 2019 agreement to deliver 60 bcm — or 4.5 bcm annually — by the early 2030s.The agreement is contingent on a final investment decision on the Leviathan expansion project and signing a transmission agreement with INGL for the Nitzana pipeline to Egypt within two to eight months.New sukuk issuance on the horizon? Egypt may tap the international debt markets with a new USD 1 bn sovereign sukuk tranche by September or October, a government source told EnterpriseAM today. The upcoming sukuk issuance will mark our first international issuance of the current fiscal year, and is part of the country’s USD 5 bn international sovereign sukuk program.This will stand as Egypt’s third-ever sovereign sukuk issuance, following June’s USD 1 bn sovereign sukuk issuance, which had been fully subscribed by Kuwait Finance House, and our maiden sukuk issuance back in 2023.There is already a strong investor appetite for the upcoming issuance as the offering advisors reported concrete offers and significant investor interest when they concluded a series of promotional meetings and roundshows in April, ahead of June’s successful issuance of the USD 1 bn sovereign sukuk issuance.THE BIG STORY ABROAD-It’s another day with a mixed bag of headlines in the international press. Among the stories getting top billing are rising concerns over the future of the US economy. US Federal Reserve officials are signaling a growing concern over a slowing US economy and weakening labor market, less than a week after the Fed left interest rates steady. Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly both expressed support for two interest rate cuts this year, citing signs of economic slowdown and uncertainty over the impact of US tariffs on inflation — which remains above the Fed’s 2% goal, Reuters reports. ICYMI- Worries over a weakened labor market follow worse-than-expected job growth numbers that prompted US President Donald Trump to fire the Bureau of Labor Statistics commissioner Erika McEntarfer — a Biden appointee whom he claimed “faked the jobs numbers before the election to try and boost Kamala [Harris’] chances of victory.” 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- We’re in for a warm day, with temperatures in Cairo reaching a high of 36°C, before cooling down to 23°C. Up north, we’re expecting cooler weather with a high of 28°C and a low of 26°C, according to our favorite weather app.

Good afternoon, friends. We hope you had a nice, calm weekend and enjoyed the cooler weather we got for a change. The news cycle seems to be taking a breather, and we’re taking a page out of its book. THE BIG STORY TODAY- The government did not increase gas prices for industry at the start of the month, a government source told EnterpriseAM in response to unconfirmed reports over the weekend that sparked concern in the manufacturing sector. Factories haven’t received any official notifications regarding any increase, Chamber of Building Materials Industries head Ahmed Abdel Hamid confirmed to EnterpriseAM.The question isn’t if gas prices will rise, the question is when. With the country increasingly relying on expensive LNG imports to help fill the gap between local demand and supply, the country’s energy import bill is cranking up — and someone’s got to foot the bill. It’s only a matter of time before the government tries to get the private sector to share more of this financial burden; however, the government is yet to make a decision on the matter and is closely watching disinflation progress, our export push, and the strengthening of the EGP against the USD before making any move, our government source told us.THE BIG STORY ABROAD-OPEC+ members have reached a preliminary agreement to boost oil output by 548k barrels per day in September amid fears of supply disruptions from Russia. Member countries — including Saudi Arabia — are set to reach a final agreement today, with no more production cuts planned. The group has been cutting back on production for several years, reversing course earlier this year to regain market share. Output increases began in April at 138k bpd — causing oil prices to drop to a four-year low. The increases continued, rising to 411k bpd in May, June, and July, and are set to remain at 548k bpd in August. If production levels continue through September, the group will have effectively reversed its 2.2 mn bpd production cut made in 2023. (Bloomberg | Reuters) 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 briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.In today’s issue: We’re taking a look at the Industry Ministry’s EGP 30 bn financing initiative — and why it hasn’t been put into effect just yet. ☀️ TOMORROW’S WEATHER- We’re looking at a relatively mild day in Cairo tomorrow, with temperatures set to peak at 35°C before cooling down to 24°C. Still up north? Expect a high of just 29°C and a low of 27°C, according to our favorite weather app.

We’re fast approaching peak summer, friends, and that’s reflected in an unusually quiet Sunday morning here in Egypt. It’s enough to make us wonder: Should we follow in the footsteps our neighbors on the other side of the Med and just … take August off? Yes, it helps that they have more vacation days. It strikes us that it just makes good sense from a business point of view to more overtly embrace a quiet month of August. (Fast fact: Egyptian workers get slightly less paid time off than many European workers. Employees here get 21 workdays as the baseline — a figure that rises to 30 for anyone who has been socially insured for a decade or more. Denmark gives everyone five weeks of paid leave — on top of national holidays — while Austria hands out 25 days of paid vacation per year and 13 national holidays. The average worker in France gets five weeks of paid time-off plus 11 national holidays. Sure, we have a few more national holidays, but…)What news we have this morning is good: A draft of the Finance Ministry’s new tax policy framework suggests we’re not going to be hit with new taxes. We appear to have dodged the worst of Donald Trump’s tariff tantrum. And there’s plenty of inbound Chinese investment. We have the full rundown below. BUT FIRST- We spent a quiet weekend pondering the health of the US economy (see Big Story Abroad, below), down-in-the-dumps about the resident 18-Year-Old’s imminent departure for college abroad, and low-key freaking out about AI. Our weekend reading did little to assuage our malaise, though cooling mercury and lots of sunshine helped. From our weekend AI reading list: AI is coming for consulting, and McKinsey is freaking out, the Wall Street Journal warns us. Smart folks are starting to get really worried not just about the safety of our jobs, but about whether we can even trust AI not to kill us. Per Bloomberg “Would a chatbot kill you if it got the chance? It seems that the answer — under the right circumstances — is probably.” And over in the pages of the FT, novelists are losing it, worrying about the future of creativity in a gen AI world.Palate cleanser: Samuel L. Jackson in a delightfully profane ad for wind energy player Vattenfall.PSA- WEATHER- The mercury is cooling significantly starting today, with a high of 34°C and a low of 25°C forecast for Cairo, according to our favorite weather app.You can expect it to be even cooler in Alexandria, with a high of 32°C and a low of 24°C.NEWS TRIGGERS-It’s the first work day of August — here are the key news triggers to keep your eyes on this month:We’re hoping non-oil private sector activity breaks its four-month streak in the red, with S&P Global set to release its Purchasing Managers Index report for July on Tuesday. Our last reading saw the country’s headline figure drop to 48.8 in June from 49.5 in May, taking us further below the 50.0 mark that separates growth from contraction.The business community and policymakers will have their eyes on July inflation figures, which are expected to be released at the end of this week or by Sunday at the latest. Last time round, annual headline urban inflation unexpectedly fell 1.9 percentage points to 14.9% in June, ending an upward trend that extended over three consecutive months. However, energy and tobacco price increases could push up the headline figure this time round.The Finance Ministry will begin disbursing overdue export subsidies totaling EGP 5 bn to some 2k exporters this Thursday under the revamped export subsidy program that will see exporters receive 50% of their overdue dues in cash over four years, with the rest offset against liabilities. The central bank’s Monetary Policy Committee will meet on 28 August to decide whether to cut interest rates. The committee voted to leave interest rates unchanged in its last meeting, which has only emboldened forecasts that the bank will cut rates at its August meeting — with some expecting a cut of up to 200 bps.WATCH THIS SPACE- #1- Could Egypt ban TikTok? TikTok has three months to align its content moderation policies with Egypt’s social and moral values or else the House will look into banning the app, Ahram Online reports, citing comments from Rep. Ahmed Badawi after a meeting between the app’s Egypt and North Africa CEO, the NTRA, and the House Telecoms Committee. The ultimatum comes amid public calls to ban the platform and a string of arrests targeting local TikTokers over content deemed offensive or misleading. Badawi said introducing stricter regulation — not bans — is the way forward. #2- Egypt, Jordan get a natural gas boost as a new floating regasification plant docks: The Energos Force floating storage and regasification unit (FSRU) has slid into its berth at Jordan’s Aqaba Port and is set to begin feeding into the Arab Gas Pipeline “based on operational needs and grid load,” the Oil Ministry said in a statement yesterday. The FSRU will provide an extra 750 mcf/d of regasification capacity that can be shared between Egypt and Jordan in the event of emergencies.We’ve been expanding natural gas capacity all summer: Egypt has already deployed four FSRUs this season with a combined capacity of 2.7 bcf/d. Our expanded regasification capacity will help accommodate the incoming LNG shipments.IPO WATCH- National Printing’s public offering was 23.6x oversubscribed following the close of the subscription period on Thursday. The company priced its EGX IPO at EGP 21.25 per share, while the fair value was set at EGP 28.27 per share.The company is floating a 10% stake via a secondary two-tranche offering that is expected to raise some EGP 449.9 mn in proceeds, implying a market cap of EGP 4.5 bn at listing. The offering included a 5% private placement tranche fully allocated to anchor investor Omran Mohamed Al Omran of Saudi Arabia, and a 5% public tranche offered to retail and individual investors in the local market.ADVISORS- Our friends at EFG Hermes Investment Banking are the sole global coordinator for the combined offering, while Zulficar and Partners is serving as counsel. 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 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.HAPPENING TODAY- #1- It’s day one of the Egyptians Abroad Conference at the Triumph Hotel in New Cairo. The two-day Foreign Affairs Ministry-organized event will act as a “national platform for direct dialogue and the exchange of ideas and proposals with Egyptians living abroad,” according to a Foreign Ministry statement. #2- Attention aspiring university students, parents, and education professionals, Edugate is kicking off its annual fair at the Royal Maxim Palace Kempinski Hotel in New Cairo. The three-day event will host universities from Egypt and across the world, in addition to scholarship providers, education financing companies, training institutes, and more. HAPPENING TOMORROW- Voters in Egypt will begin heading to the polls tomorrow for the senate elections, following the close yesterday of polling stations for Egyptians living abroad. Results will be announced on 12 August, with successful candidates elected to serve a legislative term from 2025 until 2030.DATA POINTS- #1- Egyptian demand for gold bars and coins dropped 23% y-o-y in 2Q 2025 to hit 5.9 tons, according to data from the World Gold Council. The drop in gold purchases was the result of “profit taking [emerging], particularly in the latter part of the quarter as the gold price failed to breach new record highs,” according to the council. Demand for gold jewelry fell 17% y-o-y to 5.7 tons over the same period.#2- Net FDI inflows from FY 2024-25 are expected to come at USD 10-11 bn once investments for the 12-month period are tallied up, General Authority for Investment and Freezones CEO Hossam Heiba told Al Arabiya. Inflows came in at USD 9 bn during the first half of the fiscal year.The y-o-y comparison is a little skewed however, given the USD 35 bn Ras El Hekma agreement that pushed FDI flows in the fiscal year 2023-2024 to USD 46.6 bn. Looking ahead, the country is targeting USD 42 bn in net FDI during the current fiscal year, with plans to boost that figure to USD 55 bn in FY 2028-2029.THE BIG STORY ABROAD-It’s finally August — aka Tariff Month — and US President Donald Trump has published a list of new tariffs set to be implemented next Friday. Trading partners are sorted into three groups depending on trade surplus, with most of the Gulf falling to the first group hit by the minimum 10%.Among the highest tariffs: Canada will be slapped with a 35% tariff, higher than the earlier announced 25%, as diplomatic friction between the country continues and after it said it would recognize a Palestinian state; Switzerland was slapped with a 39% tariff; and India will be subject to a 25%.The story is everywhere in the foreign press: Bloomberg | Reuters | Financial Times | CNBC | New York Times ALSO- Trump shoots the messenger: Worse-than-expected job growth numbers prompted the president to fire the Bureau of Labor Statistics commissioner Erika McEntarfer, a Biden appointee “faked the Jobs Numbers before the Election to try and boost Kamala’s [Harris’] chances of Victory,“ he claimed.The Fed is also closer to danger: The decision coincided with an opening for Trump to target the Fed by appointing one more governor, after governor Adriana Kugler resigned on Friday. Trump had lashed out at chairman Jerome Powell for not capitulating to interest rate cuts demands, calling him “TOO ANGRY, TOO STUPID, & TOO POLITICAL,” and calling on the Fed’s board to assume control of the independent institution.Markets don’t like the volatility: Dow Jones closed down 1.2% on Friday, while the S&P declined 1.6% and the Nasdaq Composite shed 2.2%.ALSO GETTING ATTENTION- Apple and Amazon published their earnings on Thursday:Apple benefited from a boost in iPhone sales as customers rushed to lock in pre-tariff prices, with overall sales rising 10% y-o-y. CEO Tim Cook said the company will be hit with USD 1.1 bn in costs from the tariffs in 3Q 2025 alone. (Wall Street Journal | Reuters)Amazon shares fell more than 7% after hours on Friday as its cloud computing unit failed to meet earnings expectations, with net income margins contracting, after rivals Microsoft and Alphabet both reported strong performance at their cloud units. (Reuters)

Could the government finally settle its debt to the pharma industry? The Unified Procurement Authority will reschedule debt repayments to pharma factories, distributors, and medical and cosmetics suppliers, government sources told EnterpriseAM. This came following a meeting between pharma players and the Madbouly government centered around the owed debt. Big players will get their money in three years: The authority agreed to settle its dues owed to major pharma players over a three-year period. Ibn Sina Pharma will receive an initial payment of EGP 3 bn (a third of what the government owes to it), while HO Group’s pharma arm Middle East Chemicals will receive EGP 30 bn. Negotiations are still ongoing with distributor PharmaOverseas and Misr Pharma.Sector players are happy with the arrangement and have agreed to continue supplying the authority with the required meds under existing agreements to keep hospitals stocked, the sources said. Government arrears owed to pharma companies exceeded EGP 50 bn by the end of 2024, a source from the Federation of Egyptian Industries’ pharma chamber told us, adding that part of the debt has been settled and companies now await the rest of their dues. The government allocated a total of EGP 10 bn to settle a significant portion of debts owed to pharma companies and medical supplies last November.The domino effect: Pharma players are waiting for their money so they can repay their own debt and make new purchases of raw materials to ramp up production and address supply gaps in the domestic market. The lack of liquidity among sector players has resulted in some shutting down operations and exiting the market or pausing the production of certain products due to their low profit margin, the sources said.Behind the shortage in supply: Companies have been focused on producing the 3k most in-demand drugs for chronic and non-chronic diseases, prompting a shortage in several other products, including imported meds that have no local alternatives.Pharma players are once again asking for the green light to raise prices to increase liquidity in the sector. However, the government doesn’t appear to be on board with that, our sources said.REMEMBER- Some med prices rose by as much as 25% last summer following requests from local pharma producers in response to the EGP float.The government’s mandatory pricing scheme is currently under review in an effort to further enhance pricing flexibility.DIVE DEEPER INTO THE SECTOR- We published an Inside Industry diving into the pharma sector’s performance in 2024 earlier this year — check it out here.

TRADE- The EU has reduced anti-dumping duties on Egyptian steel to 11.7% from 12.8% previously, according to a general disclosure document (pdf) shared by the commission earlier this month. The document specifically names imports from Ezz Steel — Egypt's sole exporter of hot-rolled flat steel to the EU. The EU found that Egyptian steel accounted for 2.2-2.7% of the EU’s open steel market during the investigation period — roughly 741k-906k tons. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)REFRESHER- The European Commission last August initiated an anti-dumping investigation into hot-rolled flat products of iron, non-alloy or other alloy steel imports from Egypt, India, Japan, and Vietnam.ENERGY- Future cooperation with China’s UEG? The Oil Ministry inked an MoU with China’s United Energy Group (UEG) to explore joint investments across oil, gas, renewables, and energy trading in Egypt and overseas, according to an Oil Ministry statement. The meeting between the two sides also saw UEG express interest in expanding its footprint in Egypt. NBFS- PayTabs merchants and consumers can now use Contact Financial’s ContactNow’s BNPL services to finance their purchases, under a new strategic partnership between the two sides, according to a statement (pdf).

The Madbouly government has secured LNG supply through 2026 at a total estimated cost of USD 8 bn after signing agreements with six international energy companies, a government source in the energy sector told EnterpriseAM. The final bill may fluctuate based on domestic production and consumption levels, thanks to a built-in flexibility mechanism negotiated with suppliers. We’ll be investing more in regasification capacity to make it work: The government plans to lease a fifth floating regasification plant to accommodate the remaining 46 incoming LNG shipments. Talks with Qatar are also underway for medium-term LNG supply.REMEMBER- A government source has previously told us that the Oil Ministry will spend USD 2.5 bn on 60 LNG shipments this summer to meet the expected high electricity demand. The impact on global markets: Our continued reliance on imports will “likely [help] absorb some of the additional supply as new projects come online and help support prices,” Bloomberg writes. The market is already experiencing heightened demand, with Europe seeking extra shipments to replace Russian gas. Exports to remain on hold: Egypt is expected to miss its 2027 goal of resuming LNG exports and will remain a net gas importer until at least 2030, our source said, adding that the 2030 timeline lines up with efforts to boost local production and investments in the gas sector. The government is preparing a new bidding round to attract energy investors and is seeking to increase natural gas production by developing several fields to produce some 300 to 350 bn cubic feet of gas, another government source told us. The plan to increase production will reduce the import bill for petroleum products for the current fiscal year by approximately USD 1.5 bn, according to the source.A big plan unfolding: The government wants to see petroleum sector output rise to EGP 1.7 tn this fiscal year, according to documents seen by EnterpriseAM. The plan is to unlock some EGP 208 bn in private investment in the sector during the 2025-2026 fiscal year — 40% of it in natural gas — with a goal of generating USD 5 bn in export revenues by 2030, up from USD 3.3 bn currently. IN OTHER ENERGY NEWS-More details about the plan to bring in Cypriot gas to Egypt for liquefaction and re-export: Plans are underway to fast-track the connection of Cyprus’ offshore Cronos and Aphrodite gas fields to Egypt’s Zohr infrastructure, with a combined 1.3 bcf/d of gas set to be routed through the network by 2028, government sources told Asharq Business.Breaking down the timeline: Eni is expected to complete a 90-km subsea pipeline linking the Cronos field to Port Said by the end of 2027, bringing in around 500 mcf/d, a percentage of which will be used to feed the national grid. Gas from the Aphrodite field will follow with 800 mcf/d coming in a year later. REMEMBER- Egypt and Cyprus inked multiple agreements earlier this year that will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

Good afternoon, friends, and congratulations on making it to the half-way mark of the workweek. It’s another calm day at home, whereas abroad, the hunger crisis in Gaza continues to dominate global headlines. THE BIG STORY TODAY- Egypt has secured LNG shipments through 2026 at a total estimated cost of USD 8 bn, a government source told EnterpriseAM. The final bill may fluctuate based on domestic production and consumption levels, thanks to a built-in flexibility mechanism negotiated with suppliers. Plans for a fifth regasification unit are also underway to accommodate the remaining 46 LNG incoming shipments, we were told.ICYMI- Electricity consumption hit a new peak at 39.4 GW on Sunday, after a few days of extreme heat pushed energy demand to a series of record highs. Rising demand at home and a fall in domestic supply has pushed Egypt to increasingly rely on LNG imports to keep the lights on and prevent a return to the days of planned outages. 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@enterprisemea.com to explore sponsorship opportunitiesTHE BIG STORY ABROAD-Gaza’s hunger crisis reaches catastrophic levels. The UN-backed Integrated Food Security Phase Classification issued a food insecurity and malnutrition alert earlier today, noting that the “worst-case scenario of famine” is playing out in Gaza, and warning that lack of immediate action will lead to widespread hunger-related deaths. While the alert is not an outright formal declaration of famine, it follows an alarmingly increasing rate of malnutrition-caused Palestinian deaths — in the past 24 hours alone, 14 more Palestinians have perished from hunger, according to Gaza’s Health Ministry. For a formal famine declaration to be issued, the IPC requires data that cannot be obtained given the lack of access to the strip. REMEMBER- Over 100 international aid organizations and human rights groups called for restrictions on aid to be lifted last week. On Sunday, Israel announced a ten-hour daily pause on military operations in Gaza until further notice, allowing aid to enter the strip following international pressure. UN members and Palestinians on the ground, however, said that not much has changed.ICYMI- Egyptian President Abdel Fattah El Sisi called on US President Donald Trump in a televised speech yesterday afternoon to urge an end to the war in Gaza, noting that conditions in the strip have become “ tragic and intolerable.” Trump pledged to set up food centers, condemning Israel for limiting aid and commenting that there is “real starvation” in Gaza — opposing Israeli PM Benjamin Netanyahu, who claims otherwise. MEANWHILE- Germany and Spain announced plans to airdrop food and other supplies into the strip. However, both acknowledged that it will not be enough. “We know that this can only be a very small help for the people in Gaza, but at least it is a contribution that we are happy to make,” German Chancellor Friedrich Merz said. (WHO | AP | CNN | BBC) 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- It seems the worst of the heat wave is behind us, with temperatures set to peak at a relatively cooler 37°C in the capital tomorrow, before dropping to 25°C. We’re also expecting cooler temperatures up north, with a high of 29°C and a low of 26°C, according to our favorite weather app.

REAL ESTATE- Paragon, Adeer to develop EGP 70 bn mixed-use development in New Cairo: Local property developer Paragon Developments and Saudi Arabia’s Adeer International — a subsidiary of Sumou Holding — have launched a joint development entity, which will work with Midar to develop a EGP 70 bn mixed-use project in New Cairo’s Mostakbal City, according to a press release (pdf). The 500k sqm development will feature commercial, administrative, and hospitality components, and is being positioned as a smart, sustainable urban hub.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)More on Somou’s first real estate investment fund in Egypt: Sumou Holding is looking to launch a USD 1 bn real estate fund in Egypt by late 2025 or early 2026, Chairman Ayedh Al Qahtani told Al Arabiya adding more color to comments he made to Prime Minister Moustafa Madbouly earlier this week. The company has been in talks with the EGX for nearly two years on regulatory changes that would make it easier for foreign and local developers to establish such funds. Al Qahtani expects Saudi investors to make up 30-40% of the fund’s investor base, with the rest split between Egyptians and other foreign players.INVESTMENT-Swiss, French players eye therapeutic nutrition manufacturing in Egypt: The Health Ministry is in talks with Switzerland-based clinical nutrition firm Medifood and French infant baby formula maker Modilac to locally manufacture clinical nutrition products targeting disease-related malnutrition, according to a statement. The proposed joint venture would establish Egyptian-Swiss-French production lines to serve the local and regional markets with clinical nutrition formulas for patients with conditions including kidney diseases, liver diseases, diabetes, and respiratory illnesses.ENERGY-Kufpec Egypt, Shell sign off on Mina West gas development: Kuwait Foreign Petroleum Exploration Company’s (Kufpec) Egypt arm and Shell have reached a final investment decision to develop the Mina West gas discovery in the North East El Amriya concession in the Mediterranean, Kuwaiti state news agency KUNA reported.BACKGROUND- Shell’s two North East El Amriya concession gas fields — Mina West and Khufu — could add a combined 2 tn cubic feet of gas to the country’s reserves.RENEWABLES-Infinity partners with Crédit Agricole to finance solar home solutions: Our friends at renewables giant Infinity have partnered with Crédit Agricole Egypt to expand access to residential solar energy through a new financing program, according to a joint press release (pdf). Under the agreement, Infinity customers can now access a solar loan offered by Crédit Agricole with preferential interest rates and repayment terms of up to seven years. The loan covers a range of solar products — including home solar systems — and is designed to remove financial barriers for households for more affordable renewable energy transition.NBFS-Nice Deer was given the green light by the Financial Regulatory Authority to become the country’s first NBFI providing factoring services for deferred medical ins. claims, the local insurtech startup said in a statement. The platform seeks to convert delayed ins. receivables into immediate payments for medical service providers, helping address liquidity issues in the healthcare system.

ENERGY- The Madbouly government has fully resumed gas supplies to fertilizer players as of yesterday, a government official told Asharq Business. The move comes shortly after we boosted our regasification capacity with two new floating storage regasification units (FSRUs) beginning operations. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)REMEMBER- Authorities earlier this summer 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.EDUCATION-FAB’s Lime launches in Egypt: First Abu Dhabi Bank (FAB) launched its education-focused fintech Lime in the local market with an initial investment of USD 9.4 mn, the lender announced in a press release (pdf). The FRA-licensed platform offers 6-12-month installment plans for amounts of up to EGP 1 mn, with digital onboarding and approvals provided within minutes. At the moment, Lime is all about the education sector — partnering with nurseries, schools, and universities — but plans to expand into other essential sectors.DIPLOMACY- Military talks with the US: President Abdel Fattah El Sisi yesterday met with US Centcom Chief Michael Kurilla and discussed ways to develop Egyptian-US cooperation across fields — namely military and security, according to an Ittihadiya statement. Talks also touched on Gaza, Syria, Libya, Sudan and the Horn of Africa, as well as concerns over Nile water security.REGULATION-The Financial Regulatory Authority (FRA) has approved five companies’ requests across various fintech and outsourcing-related activities in the NBFS sector, it said in a statement yesterday. The approvals cover license renewals, fintech expansions, and new company formations.Who got the nod? Fintech startup Digified was cleared to expand its scope to include e-contracting for non-banking financial products and digital record-keeping, allowing it to operate across all fintech domains. Insurtech startup Nice Deer, microfinance startup Dayrah, and pharma distribution startup iSupply were granted approval to launch as fintech-enabled startups. Meanwhile, outsourcing services firm VLens had its registration renewed in the FRA’s outsourcing providers registry.TRANSPORT-Cool comfort coming to high-speed rail: Johnson Controls-Hitachi Air Conditioning and Elsewedy Machinery will supply over 3k cooling units for our 660 km high-speed rail project, according to a press release. The consortium secured the heating, ventilation, and air conditioning contract for the project. DEBT-Canal Sugar is looking to secure a USD 150 mn loan from a National Bank of Egypt-led consortium, unnamed sources told Asharq Business. The loan would support plans to triple daily beet production at the company’s Minya facility to 36k tons by 2026. The loan, set to be signed this month, would help fund equipment purchases needed to reach that target.

Good morning, friends, and welcome to a holiday-shortened workweek for our readers in Egypt. It’s a macro-heavy kind of morning thanks to Finance Minister Ahmed Kouchouk’s roadshow to London last week and the good folks at the IMF. In short order, we have for you news that the ministry hopes to unlock USD 2.5 bn after it wraps the next two IMF reviews this fall; that tax reforms could double collection this fiscal year; and the inside track on where we stand in the phase-out of subsidies. We also have word that the Customs Authority is mulling the imposition of a levy on royalties and reviews of both venture capital and M&A activity in Egypt in the first half of the year. ^^ All of this and more below and in this morning’s news well. PSA- #1- Egypt is in for a long weekend: The public and private sectors will be taking Thursday, 24 July as a holiday in observance of the 23 July Revolution.We’re off, too: EnterpriseAM Egypt will be taking a publication break on Thursday, but we’ll be back in your inboxes on Sunday, 27 July. #2- Fly directly from Abu Dhabi to Alamein: Etihad Airways kicked off service to Alamein from Abu Dhabi on Thursday — the new route offers twice-weekly flights on Thursdays and Sundays, Etihad Airways said in a statement. “As leisure travel continues to grow, destinations like Al Alamein offer tremendous appeal for our guests seeking premium summer experiences,” the statement read.WEATHER- It’s another sunny day in Cairo, with a high of 36°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.MORNING MUST-READ-#1- Bragging to your clients about how much time you’re saving with AI may not be good for business. That’s what PwC found: It had to “cut prices for some services as clients raised the fact that the consultancy is using artificial intelligence to complete its work quicker. ‘Clients would hear us talking about using AI and say, ‘We want our fair share of those efficiencies,’ PwC Chief AI Officer Dan Priest” told Bloomberg.Some AI tools are now handling up to 90% of certain processes during an audit, The Finance Story notes. AI is also “showing up in supply chain optimisation and risk analytics … [and] automating GST filings, transfer pricing reviews, and global tax strategies.”The catch: You still have to believe what the AI says. Tech strategy pundit and former VC sage Benedict Evans put it nicely: “I find it puzzling and frustrating that OpenAI and Anthropic keep launching new models where they propose as use cases highly specific information retrieval in professions that require zero defects, when their systems are inherently incapable of doing that. These are use cases where ‘80% correct’ is meaningless — there is only right or not right. There are lots of scenarios where a system that produces a fantastic first draft is useful. But ‘build me a DCF’ where you should presume that there are mistakes everywhere is not useful.”#2- Mansoura University grad Mahmoud Felfel (LinkedIn) has sold his California-headquartered startup PlayAI to Mark Zuckerberg’s Meta. It’s a homecoming of sorts for the former Dubizzle engineer, who co-founded PlayAI in April 2020 but worked for Meta-owned WhatsApp as a software engineer for part of 2021 and 2022. What’s PlayAI? The company bills itself as a “platform for generative speech and voice cloning” and is used by teams at companies including Amazon, Coursera, and Chevron as well as by the US Army, according to its website. The PlayAI team joins Meta this week, according to Bloomberg. There’s no word on how much the acquisition cost Zuckerberg. PlayAI said last November that it had raised USD 21 mn in seed and pre-seed funding from outfits including Kindred Ventures, Y Combinator, and 500Global.WATCH THIS SPACE- #1- HSBC has launched a new bid to figure out who will succeed Sir Mark Tucker as chairman after none of the 100 or so names considered in the first search worked out. “Some of the candidates of interest to the board were unavailable while others had declined when approached,” the Financial Times reports. #2- Russian energy giant Lukoil plans to invest around USD 23 mn in oil exploration in the Eastern Desert, a government official told Asharq Business. Operations are expected to focus in the west Gulf of Suez. The Russian company is set to conduct a seismic survey this month and drill six exploratory wells throughout a three-year research period in the region. #3- More Egyptian projects in Libya? The value of Egyptian projects in Libya is expected to double to USD 10 bn by 2028, an official from the General Libyan Union of Chambers of Commerce told Asharq Business. Libya’s Reconstruction Fund has allocated LYD 69 bn (c. USD 12.7 bn) for companies participating in the rebuilding effort, with Egyptian firms expected to take a significant share, he added.REFRESHER- Egypt is already ramping up its investment presence in Libya, moving forward with plans to set up two industrial zones in Libya worth USD 250 mn, with at least 22 local companies having expressed interest in the projects. Egyptian firms are also forming joint ventures with Libyan counterparts to ease market entry. 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 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- Trump’s lawsuit against the Wall Street Journal is dominating global headlines this morning: US President Donald Trump has filed a USD 10 bn libel lawsuit against the Wall Street Journal, owner Rupert Murdoch, Dow Jones, and News Corp after the newspaper published claims that Trump had contributed a suggestive letter to a scrapbook for Jeffrey Epstein’s 50th birthday, marking his most aggressive legal challenge to media coverage since entering office. Reactions to the WSJ report and lawsuit have been sharply divided — even within Trump’s base. (Reuters | Bloomberg | Financial Times | New York Times | The Guardian)AND- Trump wants higher tariffs on EU goods: Trump is pushing for a 15-20% baseline tariff on EU imports, in an aggressive turn that could derail talks ahead of his self-imposed 1 August deadline, writes the Financial Times, citing sources familiar with the matter. Trump is also unwilling to lower 25% auto tariffs and “would be happy to keep duties on the sector,” according to the sources. The EU, which has already faced steep US duties on steel and aluminum, appears divided on countermeasures.

The second quarter of the year was a mixed bag for MENA markets. Bonds are holding steady on solid returns and sovereign supply, while equities are more uneven — dragged by oil in some markets and lifted by reform and demand in others, according to Mashreq Capital’s latest quarterly outlook (pdf). (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)MENA bonds delivered a solid return in 1H, shrugging off global volatility and regional flare-ups. The Bloomberg MENA USD Aggregate Bond Index climbed 4.4% during the first half of the year on the back of a 2.6% rally in 1Q and a 1.7% gain in 2Q. The index continued to offer a yield of 5.7%, some 60 bps above its five-year average, the report said.Gulf sovereigns and government related entities (GREs) drove most of the returns, with sovereigns contributing 256 bps and GREs contributing 118 bps. Saudi Arabia (+160 bps), the UAE (+122 bps), and Egypt (+36 bps) led the way in the six months ending June, according to the report.Mashreq Capital’s sovereign picks: The UAE and Qatar offer stability through low breakeven oil prices and diversified economies, supporting steady spreads and investor demand, Mashreq Capital said. Saudi remains fundamentally strong, though long-end bonds face pressure from supply, the report said. Oman benefits from fiscal consolidation and policy credibility, with potential for rating upgrades, while Morocco sees tightening spreads from reforms and discipline, and Egypt is supported by GCC aid, IMF backing, and improving external balances.It’s “positive” on Oman, Egypt, Morocco, and Turkey, and “neutral” on Saudi Arabia, UAE, Qatar, Kuwait, and Jordan, as these markets offer stability but may face headwinds. Bahrain stands alone with a “negative” view.The take on corporate fixed income: Mashreq Capital remains overweight on select infrastructure-linked bonds in Saudi Arabia and the UAE, where strong sponsors, predictable cashflows, and sound structures offer compelling yield premiums over sovereign benchmarks, the report said.GCC AT1s and Tier 2s in particular offer attractive carry opportunities, supported by well-capitalized, often state-linked banks, the report said. On the other hand, Mashreq is cautious on Bahrain and Sharjah, where weakening credit fundamentals underscore the need for more attractive entry points, despite the assumption of broader Gulf support.The region’s bond supply is expected to reach USD 125 bn by year end, with around 62% already executed in 1H. Saudi Arabia alone accounted for 46% of issuance so far this year. Meanwhile, Kuwait is prepping a landmark USD 20 bn bond issuance, its largest ever, after passing a long-delayed debt law. The UAE is also expected to be a major contributor to 2H supply, with Sharjah and Ras Al Khaimah already active in 1H and further issuances expected at both the federal and emirate level, the report said.ON THE EQUITIES SIDE-Bullish on Emirati, Qatari equities: Sustained oil price movements remain the dominant driver of fiscal dynamics across the region, with the UAE and Qatar best positioned in a low-price environment due to their diversified economies and low fiscal breakeven levels, while Saudi Arabia, Kuwait, and Oman exhibit higher sensitivity, the report said.Mashreq Capital remains cautious on sectors tied to government spending, maintaining limited exposure where fiscal tightening could pose downside risk. Meanwhile, Dubai real estate remains resilient, with Emaar recording its strongest month in May, and despite slower rent growth, there are no signs of distress.Key market signals ahead: Earnings, projects, and pressure points. The upcoming earnings season will be closely watched, especially in Saudi Arabia, where any further deceleration in earnings growth could weigh on overall market sentiment. Financials are expected to remain solid performers, supported by robust sector data from both Saudi and the UAE, while materials and cyclical names — particularly aluminium producers and copper miners — may deliver upside surprises. A slowdown in regional project awards has also emerged as a concern — if this trend persists, it could drag on earnings growth over the next 12–24 months. On the tourism front, geopolitical tensions pose a lingering risk to arrivals, though recent improvements suggest a more stable outlook. EGX3033,821+1.0% (YTD: +13.7%)USD (CBE)Buy 49.36Sell 49.49USD (CIB)Buy 49.37Sell 49.47Interest rates (CBE)24.00% deposit25.00% lendingTadawul 11,007-0.3% (YTD: -8.6%)ADX10,262+0.2% (YTD: +9.0%)DFM6,094-0.2% (YTD: +18.1%)S&P 5006,2970.0% (YTD: +7.1%)FTSE 1008,992+0.2% (YTD: +10.0%)Euro Stoxx 505,359-0.3% (YTD: +9.5%)Brent crudeUSD 69.28-0.4%Natural gas (Nymex) USD 3.57+0.7%GoldUSD 3,358+0.4%BTCUSD 117,7600.0% (YTD: +25.9%)S&P Egypt Sovereign Bond Index881.36+0.1% (YTD: +13.4%)S&P MENA Bond & Sukuk145.720.0% (YTD: +4.1%)VIX (Volatility Index)16.41-0.7% (YTD: -5.4%)THE CLOSING BELL-The EGX30 rose 1.0% at Thursday’s close on turnover of EGP 4.5 bn (10.2% below the 90-day average). Regional investors were the sole net sellers. The index is up 13.7% YTD.In the green: Edita (+7.8%), GB Corp (+2.8%), and CIB (+2.3%).In the red: Beltone Holding (-2.6%), Alexandria Mineral Oils (-1.3%), and Juhayna (-0.9%).

It’s one of those mixed-news days for folks who like to invest in — or watch — markets, and for a change, the ugly news is on the other side of the Atlantic Ocean. THE GOOD- Retail investors flocked to Bonyan’s EGX offering, with the retail tranche of the IPO 33.7x oversubscribed at close yesterday, mirroring oversubscription by institutions earlier this week, a source close to the transaction tells us. The company offered 20-21.9% of its shares. The real estate investment firm is expected to make its EGX debut next Tuesday, 22 July, the source said.Bonyan priced its IPO at the lower end of its range — EGP 4.96 per share, suggesting plenty of upside for buyers given the independent financial advisor said a fair value looks more like EGP 7.52. ADVISORS- CI Capital and Arqaam Capital are quarterbacking the transaction, while Mubasher is the offering agent. Matouk Bassiouny & Hennawy are serving as counsel, Baker Tilly did duties as independent financial advisor, and PwC is the auditor of record. THE UGLY- Donald Trump rattled markets and sent the greenback down nearly 1% for a time yesterday as he stepped up his campaign against Federal Reserve chair Jay Powell. US media reported that the US president had earlier this week brandished a letter firing Powell and asked the lawmakers he was meeting with whether he should send it. BACKGROUND- Trump has waged a blunt campaign against Powell for months now, pressuring him to cut interest rates and suggesting he’s open to firing Powell if the chairman doesn’t come to heel. Where things stand now: “We’re not planning on doing anything,” Trump said overnight. “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud, and it’s possible there’s fraud.”Wait, fraud? Powell? The guy’s a straight-shooter’s straight-shooter, but that hasn’t stopped Republicans from trying to trump-up (pun intended) charges against him. Trump’s winged monkeys are angling to use an over-budget, USD 2.5 bn project to renovate the Fed’s HQ against Powell. WHY IT MATTERS- The news raised fresh doubts about whether the Fed would, under the next Trump-appointed Fed boss, continue to set monetary policy independent of political interference. It's not a stretch to say the independence of the Fed is one of the cornerstones of the global financial system. An independent Fed can make politically unpopular decisions — to, say, control inflation — without pressure from elected officials seeking short-term gains in popularity. Over the long term, an independent Fed is better able to deliver price stability and drive economic growth — that’s fundamentally what preserves confidence in both US financial markets and the greenback: global investors know that (today, at least) monetary policy is being set for economic reasons, not political ones. Go deeper with the Wall Street Journal here.Can Trump really fire Powell? Maybe. A law on the books since 1913 gives the president the power to fire the Fed chairman, but only for “cause” — and what constitutes “cause” is largely undefined. We’re going to cross the Rubicon one sooner or later: Powell’s term is up in May 2026.Go deeper: The news is all over global front pages this morning, with each of the following outlets running multiple stories and explainers: Associated Press | Reuters | Bloomberg | Financial Times | Wall Street Journal. PSA- The good news / bad news rhythm continues with this morning’s public service announcements: GOOD NEWS- We’re in for a four-day workweek: Prime Minister Moustafa Madbouly announced Thursday, 24 July as a holiday for the public sector in observance of the 23 July Revolution. We’ll be on the lookout for similar statements from the Labor Ministry, EGX, and central bank.WEATHER- As has been the case every day this week, it’s another scorching hot day in Cairo, with a high of 39°C and a low of 28°C, according to our favorite weather app.It’s a little cooler in Alexandria, with a high of 33°C and a low of 23°C. BAD NEWS- That’s a wrap on Lamees El Hadidi’s Kelma Akhira. One of the nation’s most influential talking heads will be departing from ON TV — her five-year run with United Media Services ended after both sides agreed not to renew their contract, the company said in a statement.Where to next? El Hadidi gave no indication of where we can catch her next, but we’ll be paying extra attention to her socials in the weeks to come as we wait for an announcement. Of all the nation’s talking heads, Lamees is the smartest (and most sympathetic to the private sector) on anything involving business and the economy. We’re reaching out to ask her what’s next and we’ll report back and soon as we’ve had a chat.WATCH THIS SPACE-#1- Fourth floating regasification plant incoming: US-based energy infrastructure company New Fortress Energy (NFE) has deployed the Energos Winter floating storage and regasification unit (FSRU) following a five-year charter agreement with the Egyptian Natural Gas Holding Company (EGAS), according to a press release. The FRSU will join NFE’s Energos Eskimo in Damietta in August. The more the merrier: Egypt’s two recently-acquired FSRUs began operations sequentially yesterday after their connection to the national grid was previously delayed.ICYMI- The 450 mcf/d Energos Winter will be stationed at Damietta’s United Gas Derivatives Company berth and will bring Egypt’s total FSRU-based capacity to 2.7 bcf/d.As more FSRUs make their way to Egypt, our reliance on diesel and gasoil has been climbing, with imports rising 65% yo-y to 370k bbl/d in the first half of July, Bloomberg reports citing data from analytics firm Vortexa. The current inflows have surpassed all previous monthly records dating back to 2016, underlining the country’s mounting energy pressures amid declining domestic gas output and limited LNG infrastructure.ICYMI- The spike follows disruptions in regional natural gas supplies, notably the halt of pipeline deliveries from Israel, forcing us to rely more heavily on fuel oil and diesel to meet electricity needs during peak summer demand.The market effect: The demand jump has pulled supplies from the Middle East and Russia toward the Mediterranean, reducing available volumes for Northwest Europe and intensifying the region’s existing diesel shortage, Vortexa senior market analyst Pamela Munger told Bloomberg. #2- Wadico eyes shale production: The New Valley Mineral Resources and Oil Shale Company (Wadico) and global mining firm BCM Group signed an agreement for the country's first oil shale exploration and production project, according to a statement. No financial details or timeline were disclosed. Wadico aims to introduce oil shale as a viable alternative energy source and support its use in power generation and cement production, the statement adds.There is much potential: Geological studies have shown that the Quseir-Safaga region in Egypt’s Eastern Desert hosts the country’s largest oil shale reserve, with an estimated 9 bn tons of material. The deposits could yield some 4.5-5 bn barrels of crude oil.PLUS- Wadico signed an MoU with Qalaa Holding’s mining arm Ascom and its subsidiary ASCOM Carbonate and Chemical Manufacturing (ACCM) to boost the value of Egypt’s sand kaolin resources. Under the MoU, Wadico will provide licensing and concession areas in Ras Ghareb, while Ascom will oversee geological and mining activities, and ACCM will handle the refining of the material at its Minya facilities. #3- Cement prices fall 25%: Cement prices in Egypt have fallen by some 25% over the past month to around EGP 4k per ton, industry players told Asharq Business. The decline follows an agreement between manufacturers and the government to increase output in response to rising local and export demand. Prices could fall more as currently idle production lines are brought back online, head of the Cairo Chamber of Commerce’s building materials division Ahmed El Zeiny told Asharq. Al Ahly Pharos’ Hany Genena told the news outlet that local prices could fall further to EGP 3.3-3.5k a ton.This follows a government push to restart idle plants: In early July, the government gave cement producers a one-month deadline to resume production, with a nationwide inspection campaign to ensure compliance. Industry players have been facing supply cuts instated by the Egyptian Competition Authority since 2021, which were introduced to help them tackle low prices, dampened demand, and supply gut.#4- Preparing industries for CBAM: The industry and planning ministries are working together to prepare the industrial sector for the EU’s incoming Carbon Border Adjustment Mechanism — known by its acronym CBAM. The two sides are looking to launch a new national platform to channel concessional financing and international grants toward decarbonizing the private manufacturing industry, according to a statement. The platform will serve as a tool to coordinate with development partners to fund green industrial transformation projects, improve energy efficiency, and support clean production technologies in line with CBAM requirements.To oversee it all: A joint technical committee will be formed to monitor the implementation of priority projects and ensure integration between government initiatives and international financing platforms.REMEMBER- CBAM, which is set to fully go into effect starting 2026, could have a considerable impact on Egypt’s exports — particularly from the country’s notoriously energy-intensive steel, aluminum, cement, and fertilizer industries. We have a dedicated story on how fertilizer, cement, steel, and aluminum exporters need to prepare for CBAM — check it out here. 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- Israel ramped up its bombing campaign in Syria yesterday, attacking the military headquarters in Damascus and hitting near the presidential palace in a major escalation. The attacks killed at least three people and injured more than 30. The strikes came amid an intensification of violence in the southern city of Sweida in Syria between Druze militants, Bedouin groups, and Syrian security forces who were sent to quell the fighting. The Syrian Interior Ministry announced a ceasefire later in the evening, while US Secretary of State Marc Rubio said in an X post that all parties have agreed on steps that will “bring this troubling and horrifying situation to an end tonight.” Syrian government forces were already moving out of Sweida last night. Several Arab countries later welcomed the news and condemned Israel's attacks on Damascus, including Egypt, the UAE, and Qatar. The story is getting a lot of ink: Reuters | Bloomberg | Financial Times | Guardian | Wall Street Journal

Good afternoon, friends, and welcome to the end of the workweek. It’s a relatively calm day at home, and we’ve got some good news for you. Prime Minister Mostafa Madbouly announced earlier today that Thursday, 24 July, will be a public holiday — so start planning for that long weekend.THE BIG STORY TODAY- Russian Lukoil plans to invest approximately USD 23 mn in oil exploration in the Eastern Desert, a government official told Asharq Business. Operations are expected to focus on the South Wadi El Sahl area, located west of the Gulf of Suez. The Russian company is set to conduct a seismic survey over an area of 200 sq km, in addition to drilling six exploratory wells throughout a three-year research period in the region.THE BIG STORY ABROAD-It’s another day with a mixed bag of headlines in the international press. Among the stories getting top billing:More than 60 people were reported dead after a massive fire broke out in a five-story hypermarket in Iraq. Authorities are still on the lookout for more bodies as 11 people remain missing, while 45 have been rescued. While the cause of the fire remains unknown, the governorate of Al-Kut city — where the hypermarket is located — filed a lawsuit against the building and mall owners. Results of a preliminary investigation will be revealed within 48 hours, Iraqi authorities said. (Reuters | AP | NYT | CNN | BBC) MEANWHILE- US President Donald Trump took to Truth Social on Wednesday to announce a change to Coca-Cola’s recipe. The US president wrote that he had been “speaking to Coca-Cola about using real cane sugar in Coke in the United States," claiming the beverage manufacturer agreed to the change — yet a spokesperson for the company did not confirm the switch, according to CNN. So, what’s the OG US recipe? Coca-Cola sold in the US is sweetened using corn syrup — a shift away from its international counterparts, which utilize cane sugar. US Secretary of Health and Human Services Robert F. Kennedy, Jr had previously advocated against the use of high-fructose corn syrup, with a Maha report published earlier in May noting that corn syrup contributed to child obesity, type 2 diabetes, and other chronic diseases. However, Trump’s backing argument was as simple as “it’s just better.”A bitter aftertaste for the US economy. Replacing high-fructose corn syrup with cane sugar might come at an economic cost. Corn Refiners Association President and CEO John Bode issued a statement claiming that the change would impact US manufacturing jobs, slow down farm income, and “boost imports of foreign sugar, all with no nutritional benefit.” (Reuters | BBC | CNN | AP | FT | Forbes) 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- If you’re not headed up north, we’d suggest staying indoors tomorrow, as temperatures are set to peak at 38°C, before cooling down to 24°C. Up north, we’re expecting a high of 29°C and a low of 25°C, according to our favorite weather app.

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.

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.

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.

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.