El Sisi, Trump meet up on the sidelines of Davos

Gerd took center stage during a meeting between US President Donald Trump and President Abdel Fattah El Sisi on the sidelines of Davos yesterday (watch, runtime: 10:11).

As expected, the meeting touched on Trump’s proposal to mediate the Egypt-Ethiopia dispute over the dam, with Trump saying that it “has become a very dangerous issue … I’ll see if I can get that back on track.”

Trump seems to be backing Egypt: “We’re going to do a joint venture of sorts .. They built a dam where somebody’s not getting the water that they are supposed to get and that they’ve gotten for a mn years … I wouldn’t be happy about it,” he said.

The way forward: “I’m going to try bringing the two of you [El Sisi and Ethiopia’s leader] together, see if we can make a deal,” Trump told El Sisi

“We have peace in the Middle East,” Trump reiterated several times during the meeting. “You might have Hamas where you have a little flame here and there but basically that’ll be taken out … they will be eliminated,” Trump said.

Egypt had earlier accepted an invitation from the US to join the Board of Peace for Gaza to oversee the administration and reconstruction of the enclave, according to a statement from the Foreign Ministry.

El Sisi also delivered a special address to the forum yesterday, calling for all nations to “join forces and strengthen cooperation and joint action” to address both geopolitical and economic challenges (watch, runtime; 33:10). The issue of Palestine featured prominently in the speech, with the head of state calling for the need to “build on the gains of the Sharm El Sheikh Summit, consolidate the ceasefire, and ensure the flow of humanitarian aid to Gaza without restrictions, while accelerating the launch of the early recovery process and reconstruction in various areas of the strip.”

The president also used some of his stage time to describe how “despite the numerous regional and international crises, Egypt was able to continue implementing its ambitious economic reform program.” El Sisi added that these efforts have resulted in a “marked improvement in economic performance indicators, higher growth rates, and increased private investment flows, along with widespread praise from international financial institutions.”

El Sisi name-checked the domestic and international business community multiple times in his remarks, noting that Egypt “continues to create a business climate attractive to the private sector, considering it a fundamental partner,” per a readout from Ittihadiya.

“I urge you to seize these opportunities and take advantage of the advanced infrastructure that Egypt has developed over the past years,” he told the audience. El sisi singled out automotive, pharma, logistics, information technology, and new and renewable energy being particularly attractive to foreign investors.

Is the president planning a business conference? El Sisi made reference in his remarks to a “session dedicated to business in Egypt” that would take place under his patronage later this year. He called this an “important event” but gave no further details.

Also from day three

CIB CEO Hisham Ezz El Arab spoke to CNBC Arabia on the current macroeconomic landscape and where he sees interest rates ending the year.

On our massive debt service bill, he said that it is a revenue problem as much as it is a spending one. The core issue is structural disconnect in public finance — the Finance Ministry controls only 50% of state revenues, with the remainder trapped with government entities. Ezz El Arab also criticized the tax system for failing to tax high-value activities like land trading and real estate speculation.

The interest rate outlook: Ezz El Arab expects the central bank to continue its monetary easing cycle this year, so that the year ends with rates standing at 12-13%, as the CBE continues its efforts to anchor inflation and maintain liquidity. The bank ended 2025 with a 100 bps cut, bringing rates to 20.0% for overnight deposit and 21.0% for overnight lending.

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