Good afternoon, friends, and happy Sunday. International headlines continue to be dominated by the aftermath of the Alaska Summit, while at home, Egypt’s oil production has fallen to a four-decade low.

THE BIG STORY TODAY-

Oil production in Egypt sees lowest output since the early 1980s, dropping to 513k bbl/d in 2Q 2025, according to calculations of Oil Ministry data by industry publication Middle East Economic Survey (Mees). The decline is cutting into a key source of state revenue and forcing the country to lean more heavily on oil imports to cover domestic consumption. The drop comes alongside a slump in gas output, which fell to a nine-year low of 4.2 bcf/d in 2Q.

Egypt’s refining sector is also struggling. Throughputs averaged 490k bbl/d over the first five months of the year, covering just 56% of the country’s 875k bbl/d crude distillation unit capacity. Refinery output of 493k bbl/d met only 64% of domestic demand, with gasoline and diesel production falling well short of covering consumption.

** We’ll have more on the story in tomorrow’s edition of EnterpriseAM Egypt. Stay tuned.

THE BIG STORY ABROAD-

It’s a calm day on the business front, with international headlines dominated by the latest developments between Russia and Ukraine following the Alaska Summit, and Israel and Palestine.

US President Donald Trump is reportedly set to back an agreement that would see Ukraine concede territory to Russia, in an effort to put an end to the war between both countries. Trump believes a peace agreement could be reached were Ukrainian President Volodymyr Zelenskyy to agree to relinquish the Donbas region, a region rich in mineral resources. In exchange for the region, Putin would halt advances in Southern Ukraine, which is currently occupied by Russian forces.

ICYMI- The Alaska Summit held on Friday ended with no ceasefire agreement reached, despite Trump insisting that the summit would not end without one. On Saturday, Trump took to Truth Social to announce that a peace agreement is now the goal, seeing as ceasefire agreements “oftentimes do not hold up.” (Guardian | NYT | WP | Reuters)

MEANWHILE- Residents of Gaza are set to be forced into the south of the enclave to “ensure their safety,” a spokesperson for the Israeli military said on Saturday. Residents will reportedly receive tents and “other shelter equipment” to facilitate relocation. The news comes following Israel’s announcement to take full military control over Gaza, sparking major diplomatic backlash. Both Palestinians and UN officials have noted that no place — including the south — in Gaza is safe. (Reuters | Guardian)

enterprise

*** 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 Egypt’s sustainable energy consumption initiatives.

☀️ TOMORROW’S WEATHER- Had enough of the intense heat? Well, we have good news — kind of. Temperatures in Cairo are set to peak at 37°C, before cooling down to 23°C. Up north, we’re in for a high of 29°C and a low of 26°C, according to our favorite weather app.

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