Good morning, friends. Enjoy your final sips of morning coffee and breakfast bagels for some time as it’s the last workday before we welcome Ramadan.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 20°C and a low of 11°C, according to our favorite weather app.

It’s as cold in Alexandria, with a high of 20°C and a low of 10°C.

** 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.

WATCH THIS SPACE-

#1- IFC, Madbouly government to agree on airport privatization plans by mid-March: The International Finance Corporation (IFC) is expected to reach an agreement with the Egyptian government on its privatization plan for the management of 11 airports by mid-March, Asharq Business reports, citing Civil Aviation Minister Sameh Elhefny comments during a press conference. The first phase will see the IFC offer the Hurghada Airport, followed by Sphinx Airport.

Int’l companies are eyeing our airports: Major global companies have expressed interest in managing Egyptian airports, according to Elhefny, including the three largest operators in Europe, he said. While Elhefny didn’t name which companies were interested, Hassan Allam Holding and France’s Groupe Aéroports de Paris (ADP France) submitted a joint proposal in December to manage and operate Egyptian airports.

Refresher: Reports revealed earlier this month that the IFC’s full airport privatization plan should be out within the next six months. The plan will include the technical, financial, and legal specification to speed up the airport privatization process. This comes amid the government’s plans to invite private sector players, including foreign companies, to take over the management of all of Egypt’s airports.

#2- Investment Minister Hassan El Khatib is expected to finalize a trade agreement with Morocco today to resolve an export standoff that has left 150 Egyptian containers — loaded with ceramics, food products, and insulation materials — stranded at Moroccan ports for two weeks, a government source told Al Borsa. The agreement will reportedly be inked today during El Khatib’s visit to Morocco. One proposed solution is for Egypt to increase imports of Moroccan goods to address a trade imbalance.

#3- State-owned fertilizer producer Delta Fertilizers will no longer be sold toa strategicinvestor, despite interest from five local and Gulf firms, unnamed sources told Al Borsa. Its parent company Chemical Industries Holding had initially planned to use the sale proceeds to finance a long-overdue restructuring, but will now fund the upgrade through a mix of internal resources and bank loans.

What’s the plan now? Chemical Industries Holding plans to move forward with a phased rehabilitation of Delta Fertilizers, with the first phase expected to be completed this year at an initial cost of EUR 60 mn. The upgrade aims to boost production capacity to 1.2k tons of ammonia and 1.6k tons of urea. The full rehabilitation could cost between USD 350-450 mn, with advisory firm Baker Tilly conducting a detailed investment cost assessment.

DATA POINT-

Egypt’s government debt declined to 77.4% of GDP by the end of 2024, down from 78.2% in September, marking its lowest level since March 2020, according to data from the Institute of International Finance seen by Al Arabiya.

The gov’t is set to have a busy year in the debt market: The Finance Ministry is planning to increase its local debt issuances for the fourth quarter of the current fiscal year to approximately EGP 1.8 tn, up from EGP 1.6 tn, as the government looks to meet obligations for one-year debt maturities that were issued since last March, a government official told EnterpriseAM.

Meanwhile, more debt issuances are incoming: The Finance Ministry is gearing up to complete its first sovereign sukuk issuance of the year within the next month, with the issuance set to be around EGP 2-3 bn, a government official told EnterpriseAM earlier this week. The ministry is also looking to tap international debt markets with a USD 1.5 bn sukuk issuance during the final quarter of the current fiscal year, along with plans to issue between USD 1-1.5 bn worth of green bonds or eurobonds and its first social bonds in 4Q 2025.

Moving forward: Extending debt maturities represents a key tool for the government to ease the annual debt burden and reduce debt service payments, our source said. This entails gradually replacing short-term debt with longer-term, coupled with the reintroduction of zero-coupon bonds, whose returns are paid at maturity.

CIRCLE YOUR CALENDAR-

Kuwaiti Prime Minister Sheikh Ahmed Al Sabah will visit soon to announce new joint investment projects, Prime Minister Moustafa Madbouly said during his weekly presser yesterday. The visit would follow Madbouly’s recent visit to Kuwait where he touted potential investments.

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

THE BIG STORY ABROAD-

Nvidia posts strong gains: The US chipmaking giant’s earnings report saw revenues rise 79% y-o-y to USD 38.3 bn in 4Q 2024, leading full-year earnings to more than double to reach USD 130.5 bn, exceeding analyst expectations. CEO Jensen Huang dismissed concerns of Chinese AI startup DeepSeek’s claims affecting the company’s performance, touting “amazing” demand for high-end chips.

CLOSER TO HOME- Hamas and Israel exchanged four dead Israelis for 642 Palestinian captives early this morning, days before the first phase of the fragile Gaza ceasefire is set to end. Meanwhile, US Special Envoy to the Middle East Steve Witkoff said a “summit” of regional real estate developers and planners will be held soon to discuss Trump’s forcible displacement plan.

“I think when people see some of the ideas that come from this, they’re going to be amazed,” Witkoff said, without providing further details.

ALSO- We might start looking elsewhere for Trump coverage: The White House denied reporters from Reuters, Associated Press and other news outlets from covering the US President’s first cabinet meeting held yesterday. The new policy, announced Tuesday, will see the Trump administration pick and choose who is allowed to cover events in “smaller spaces,” including the Oval Office.

Tags: