Good morning friends. It’s the end of a short — but eventful — workweek, and we’ve got a packed issue to send you off into the weekend.

Leading the issue today is our exclusive that the Finance Ministry is mulling whether to list its 20% stake in AlexBank on the EGX this year in the most recent sign that the government is looking to get serious about privatization in 2026.

Also in today’s issue is a USD 10 bn specialized steel complex from China’s Xinfeng Steel, which has caught our attention not just because of the price tag, but its potential impact on our ambitions to boost manufacturing here. We’ve also got news of SMEs default grace period cuts, the non-oil trade deficit shrinks 9% in 2025, and more.

We also have a deep dive into how 2026 is shaping up for the domestic real estate market as insiders debate how to capture surging foreign appetite at the same time as the domestic middle class is being priced out.

*** A QUICK PROGRAMMING NOTE- We’re taking a break tomorrow in observance of the anniversary of the 25 January Revolution / Police Day. We’ll be back in your inboxes on Sunday morning at the usual time. Our UAE and Saudi editions as well as EnterpriseAM Logistics will all publish tomorrow.

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WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or to catch up this long weekend on any issues you missed this week.
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AND- Tap or clickhere to take our annual EnterpriseAM Executive Sentiment Survey and let us know what you think about:

  • Whether business conditions will improve in 2026;
  • The biggest issue your business faces today;
  • What you think AI will mean for your company;
  • Where you see the EGP vs the USD this year;
  • And more…

^^ We’ll have the results in an upcoming issue.

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PHARMA — The pharma industry is renewing its push for a 10% price hike on 1k products, Egyptian Chambers of Commerce’ pharma division head Ali Ouf tells EnterpriseAM. Despite the EGP recently gaining ground against the greenback, manufacturers argue that rising input costs — specifically energy, labor, and utilities — continue to eat away at their margins under the country’s mandatory pricing regime.

Why it matters: The state views pharma as a cornerstone of its localization strategy, evidenced by the Suez Canal Economic Zone (SCZone) recently allocating 4 mn sqm to attract strategic pharma investment. However, Ouf argues that without a flexible pricing mechanism that accounts for inflation in non-FX costs, the sector will struggle to attract the liquidity needed to secure raw materials and boost exports.

But price hike or no, the state is working on clearing its arrears to the sector. Out of a total EGP 43 bn in historical debt, the state has disbursed EGP 20 bn as part of an ongoing restructuring plan, Ouf tells us. On a monthly basis, the sector is now seeing regular inflows, including EGP 2.5 bn from the Finance Ministry, EGP 2 bn from the Universal Health Ins. system, and EGP 1.8 bn from the Egyptian Drug Authority.

ENERGY — The state agreed to increase the price it pays for domestically produced gas from five foreign partners by 30-50%, with deepwater fields set for the highest increases, two government sources tell EnterpriseAM. The agreements with the Egyptian Natural Gas Holding Company (Egas) will now be sent to the House for the official sign-off.

Gas prices from Eni’s expansion projects will now reach USD 8 per mn British thermal units (MMBtu), up from USD 4 MMBtu, the sources added, denying reports of disputes between Eni and Egas over pricing.

Why it matters: Exploration and production have been seeing a slowdown after years of underinvestment led to a decline in gas production, which averaged some 4.2 bcf/d in 2025, the lowest since 2016. The state has been trying to stimulate activity in the sector, including by paying arrears and offering more incentives.

The reassessment of gas pricing is encouraging some oil majors including Eni and Shell to move forward with planned investments in expansion and new exploration, the sources added. Eni will move ahead with a USD 100 mn injection and Zohr field expansion as part of a USD 360 mn expansion phase, despite the new pricing terms still awaiting a final nod from the House, the sources added.

CONSTRUCTION — France’s Technip to set up a JV with state-owned players? French construction firm Technip is in talks with state-owned Enppi and Petrojet to establish a JV by the end of June. The JV will focus on front-end engineering and design as well as engineering, procurement, and construction services, mainly for energy projects here and abroad.

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PSA-

WEATHER- The brisk weather continues in Cairo today, with a high of 20°C and a low of 11°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 19°C and a low of 10°C.

The big story abroad

Global trade is dominating headlines for the second morning running after the EU and India signed a trade agreement, paring down reciprocal tariffs on most goods. The move can be understood as a strategic buffer against volatile trade announcements by Washington. Markets will be watching closely Trump’s reaction to the news.

The EU is slashing or eliminating tariffs on 96.6% of goods bound for India, with its eyes doubling exports to India by 2032. Brussels will stagger these cuts over seven years, reaching zero tariffs on key commodities, like base metals, marine products, and textiles. In return, New Delhi is gradually cutting tariffs on EU-sourced cars, lowering them to 10% from as high as 110%, and fully axing duties on car parts in five to ten years. Other tariffs on machinery, pharma products, and chemicals are also getting mostly canceled.

Trump unfazed by USD slide: The greenback continued its slide on Tuesday, spurred on by comments made by US President Donald Trump, indicating a lack of concern about the currency’s decline —- “the USD is doing great,” he said in response to a question about the currency’s fall. The USD hit its lowest level in four years after a 1.3% dip yesterday, extending its 2026 losses to 2.6%.

AND IN MARKET NEWS- The S&P 500 closed at a fresh high yesterday, with investor optimism about the wave of upcoming Big Tech earnings fueling the rally. Meta, Microsoft, and Tesla will be out with their earnings today and Apple will follow suit tomorrow.

ALSO IT’S FED DAY- The US Federal Reserve will conclude its first policy meeting of 2026 today and markets are expecting a hold. Markets are also closely watching for Trump’s pick for Fed Chair Jay Powell’s replacement, with his nomination expected sometime this week.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at why East Port Said Port faces a new challenge with Europe’s carbon rules for shipping.

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