Good morning, and a happy Wednesday to you all. The Egyptian private sector is flashing a complex set of signals this morning as the January PMI data reveals a technical slip into contraction territory even as output hits its longest expansion streak since 2020.

Also catching our attention this morning is a draft law that could effectively end real estate’s historic reliance on pre-sales by mandating 30% construction completion before a single unit can be marketed.

Elsewhere, we’re tracking a major strategic pivot at Nissan that could see Egypt become the automaker’s continental hub following its exit from South Africa, AD Ports securing the final funding piece for its Safaga terminal, and much more in today’s issue.

^^ All of that and more in the news well, below.

BUT FIRST- Our friends at Khufu’s topped the 2026 list of 50 Best Restaurants in MENA. Four other local spots made it to the list, including Reif Kushiyaki Cairo — which also secured the Highest Climber Award — Kazoku, Zooba Zamalek, and Sachi Cairo.

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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 while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.
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Watch this space

REAL ESTATE — Private developers will develop 10k units in a state social housing initiative, according to a cabinet statement. The project, which is part of a broader strategy to involve the private sector in sustainable development, will span two phases, with the first phase of land offerings for developers already in place.

The 10k-unit pilot will be done under a cooperation agreement with the World Bank and the Social Housing and Mortgage Finance Fund, providing a key case study to test the private sector’s ability to maintain the state’s strict affordability standards.

The Housing Ministry has identified 381 acres across 11 cities to be offered to developers across two phases. Phase one targets industrial and emerging hubs like Hadayek October, Tenth of Ramadan, and New Sohag, while Phase two expands to New Burg Al Arab and New Assiut.

LOGISTICS — AD Ports Group has locked in the capital to finish itsSafaga multipurposeterminal in Egypt, according to a statement from the ADQ-owned logistics player. The group secured a USD 115 mn project finance facility — backed by a USD 61 mn loan from the International Finance Corporation and USD 54 mn from the National Bank of Kuwait Egypt. The 15-year tenor funding supports the development of the USD 200 mn Noatum Ports-Safaga Terminal — which is set to be the first internationally operated port in Upper Egypt.

Why it matters: The Safaga project aims to move freight from road to sea — potentially cutting emissions by 50k tons of CO2 annually — and reducing logistics distances for Upper Egypt’s mining and agricultural sectors by up to 500 km. For operators, the terminal is a key piece of the Golden Triangle project, designed to increase regional competitiveness by lowering transport costs for firms.

What’s next? The terminal is currently scheduled for completion in 2H 2026. Once operational, it will handle 450k TEUs and 5 mn tons of dry bulk annually, serving as a critical hub in AD Ports’ expanding footprint in Egypt.

SUEZ CANAL — More vessels make their way back to the Red Sea: Maersk and Hapag-Lloyd will reroute the ME11 service through the Suez Canal starting mid-February, allowing for more efficient transit times. The shipping giants are looking to similarly reroute the AE12 and AE15 services to the Red Sea at a later stage.

A geopolitical caveat: The move “will remain dependent on the ongoing stability in the Red Sea area and the absence of any escalation in conflicts in the region.”

ICYMI: Shipping companies have been reluctant to make their return to the Red Sea — most recently CMA CGM rerouted three of its services back through the Cape of Good Hope citing “uncertain international context.” Maersk, however, appears to be more optimistic rerouting its MECL service back through the canal only weeks after its Sebarok ship passed through the Red Sea for the first time in two years in December.

And while we’re eagerly awaiting the day vessels start flowing through the canal like they did a few years ago, some aren’t as excited about the return to normalcy. A handful of shipping giants are expected to turn in weaker earnings this year as the eventual return to Red Sea transit drags freight rates down, Bloomberg reports. The return is expected to worsen already existing overcapacity, especially with new vessel capacity expected to increase 36% in the five years leading up to 2027.

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Happening today

Erdogan is in town: Turkish President Recep Tayyip Erdogan will land in Egypt later today, where he will meet President Abdel Fattah El Sisi to discuss regional developments and chair the Turkish-Egyptian High-Level Strategic Cooperation Council, Ala Masouleety’s Ahmed Moussa said (watch runtime: 4:51). The two heads of state are scheduled to oversee the signing of around 20 agreements and MoUs covering a variety of sectors.

Happening tomorrow

RiseUp Summit kicks off at the Grand Egyptian Museum tomorrow under the theme The Turning Point. The three-day event will bring together up to 20k attendees — including founders, investors, and professionals — from the region and beyond to talk all things startups. You can book your ticket on the event’s official website.

PSA-

WEATHER- It’s a sunny day in Cairo today, with a high of 21°C and a low of 12°C, according to our favorite weather app.

The sun will also be out in Alexandria, with a high of 21°C and a low of 10°C.

The big story abroad

US downs Iranian drone as negotiations continue: The simmering US-Iran situation saw a minor flare up after US forces shot down an Iranian drone approaching an aircraft carrier in the Arabian Sea yesterday. US military officials claim the strike was in self defense, as the drone approached the USS Abraham Lincoln aggressively. Diplomatic talks between Washington and Tehran, however, are still ongoing, US President Donald Trump confirmed.

The skirmish rattled oil markets, sending Brent crude up 1.6% to USD 68 a barrel. With markets anticipating escalations, Brent volatility has reached a peak since the last regional conflict.

MEANWHILE, IN MARKET NEWS- Analytics and software stocks fell sharply after Anthropic debuted AI tools that automate legal and analytical work, dragging down tech-heavy Nasdaq by 1.4% and S&P 500 by 0.8%. Analytics heavyweights Gartner and S&P Global saw 21% and 11% drops, respectively. Investors warned that the selloff could spill over to AI hyperscalers, since software companies are among their largest customers.

PLUS- Walmart made history as the first retailer to cross the USD 1 tn valuation mark yesterday, after rising roughly 26% in the past 12 months.

*** 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 take a look at an in-the-works real estate developers law that eyes a 30% completion rate before developers can market or launch sales.

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