House approves FY 2026/27 budget + decades-old food subsidy system to be replaced

☀️ Good morning, friends, and happy weekend. We’re leaning all the way into summer today — Cairo’s best new cool treats to get you through the heat, a sushi truck doing grab-and-go onigiri and matcha, and a new Egyptian film worth catching in the cinema.

We also have a novel that’s been dividing readers since it landed two months ago: a satirical thriller about the tradwife subculture that’s already on the NYT bestseller list and heading for a film adaptation starring Anne Hathaway. And for the history lovers, a Fall of Civilizations episode on the Pharaohs. Something for everyone.

But first, your weekly recap…

🗞️ LAST WEEK IN 3 MINS-

ECONOMY-

The House of Representatives gave its final nod to the FY 2026/27 budget and development plan, sending recommendations to the government for implementation after two weeks of plenary debate. MPs are requesting more realistic assumptions based on actual execution rates, alongside strict adherence to constitutional spending minimums.

REMEMBER- The draft budget was referred to the House in April, with the government targeting EGP 4 tn in revenues, EGP 5.1 tn in spending, EGP 3.5 tn in tax receipts, a 5% primary surplus, and a 4.9% overall deficit.

AND- The gov’t is preparing to replace Egypt’s decades-old in-kind food subsidy system with cash support beginning next fiscal year. The shift would end access to subsidized sugar and cooking oil, instead giving households funds to purchase these goods at market price.

DEBT WATCH-

The gov’t will receive EUR 1.5 bn from the European Union this month to support its economic reform agenda. The disbursement brings the total disbursed macro-financial assistance to EUR 3.5 bn out of the EUR 5 bn pledged. The partnership also includes EUR 1.8 bn in investment agreements and EUR 600 mn in grants.

IPO WATCH-

MNT-Halan is weighing an IPO of its Egyptian business on the EGX as early as this year. The fintech unicorn has tapped Citigroup and EFG Hermes to manage the potential transaction, pitching investors an estimated valuation of up to USD 1 bn for its domestic operations.

ENERGY-

Chinese renewables equipment manufacturer Sany Group signed an MoU to build Egypt’s first wind turbine factory and a wind farm in the Gulf of Suez. The plant will have an annual production capacity of 2 GW — set to be built within two years of the final agreement — while the wind farm is expected to be connected to the national grid within 23 months.

LOGISTICS-

Egyptian National Railways signed four contracts worth EUR 690 mn (c. EGP 39.5 bn) with an Alstom-led consortium to modernize two of our most critical freight and logistics rail corridors. The consortium will tackle the 6th of October-Alexandria corridor and the Belbes-10th of Ramadan line.

BANKING-

Egyptian banks adopted the ISO 20022 international standard for SWIFT financial messaging in interbank transfers. The move follows upgrades to Egypt’s Real-Time Gross Settlement (RTGS) system to bring it into compliance with the international standard. This allows richer, more structured data to travel with each payment.

REGULATION WATCH-

Newly-proposed amendments to the Companies Law could give EGX-listed companies new flexibility over their own shares. Boards would lose a favorite tool for stonewalling shareholders, and in-kind asset valuations would move out of the Gafi’s hands to licensed appraisers registered with the FRA if the amendments are passed.

TAX-

The government is moving to narrow the scope of its planned 14% VAT on leased administrative space, potentially keeping factories and buildings that provide direct services to citizens outside the tax net. The change could be written into the executive regulations to apply only to non-operational or non-service administrative premises.

AUTOMOTIVE-

Rolls-Royce entered the Egyptian market with a temporary showroom and service facility in New Cairo, ahead of a permanent showroom and design atelier due later this year. Beyond just a sales point, the company is positioning Cairo as a base to serve underdeveloped luxury markets across North Africa.

🌍 AROUND THE WORLD IN SEVEN DAYS-

This week’s headlines were once again dominated by developments in the US-Iran talks, alongside fresh SpaceX updates, a global tech sell-off, and the UK’s prime minister stepping down. Here’s the rundown.

Washington and Tehran met in Switzerland on Sunday for high-level talks, leaving with what mediators called “encouraging progress” and a 60-day roadmap for a final agreement. The parties agreed to establish a communication line for safe shipping through the Strait of Hormuz — helping traffic through the waterway slowly resume — and a “de-confliction cell” with Lebanon to maintain the halt in military operations. US Preisdent Donald Trump complicated matters by threatening to restart strikes and warning that Israeli action against Hezbollah risks undermining the broader peace process.

Following the talks, US Vice President JD Vance said Iran agreed to invite International Atomic Energy Agency (IAEA) inspectors back to their country. Washington also temporarily authorized Tehran to sell oil in USD for two months — a move Vance noted coincides with Iran’s agreement to grant inspectors access to its nuclear sites. The Iranian Foreign Ministry denied the claim, however. On Wednesday, the US Senate backed legislation to end the conflict, signalling growing Republican reluctance to fund the war just as the Trump administration prepares to ask Congress for tens of bns of USD to do exactly that. The two sides remain at odds over financial incentives for Iran, Hormuz navigation management, and Israel’s war on Lebanon. With supply disruption fears easing, oil prices retreated to pre-war levels.

MEANWHILE- SpaceX was reported to have been awarded the lowest possible environmental, social, and governance (ESG) rating — a triple-C — by MSCI just one day before the company’s record USD 75 bn IPO earlier this month. SpaceX stock fell nearly 5% in premarket trading following the news. A global tech sell-off triggered by Fed rate-hike expectations saw the company lose USD 400 bn in market value. SpaceX locked in a USD 6.3 bn computing power agreement alongside Rocketmaker with open-source AI startup Reflection, which will pay Elon Musk’s company a monthly USD 150 mn to access its Colossus 2 data center.

IN OTHER NEWS- UK Prime Minister Keir Starmer announced his resignation amid a collapse in popular support and mounting pressure from his own party, setting the stage for Labour frontrunner Andy Burnham — already confirmed as a candidate — to become the country’s seventh leader in ten years.

ALSO- Two earthquakes in Venezuela — the country’s most powerful in more than a century — have killed at least 164 people. Back-to-back 7.2 and 7.5 magnitude earthquakes struck roughly 100 miles west of Caracas. At least 700 people were injured, while dozens of buildings collapsed in La Guaira state. The USGS warns the death toll could exceed 10k as rescuers continue search efforts.

☀️ THE WEATHER THIS WEEKEND-

Grab your water bottle and seek AC, it’s going to be a warm weekend. Temperatures in Cairo are set to peak at a high of 35°C today, with a low of 24°C. Spending the weekend up north? Expect a high of 31°C and a low of 22°C. Tomorrow offers more of the same on the weather front both in Cairo and up north, according to our favorite app.

🎤 HAPPENING THIS WEEKEND-

Get ready for a night of big laughs as Omar El Gamal takes over The Theater at Mövenpick Hotel in 6th of October City tonight for Ain Gamal Vol. 63, his biggest show yet. Expect sharp observations, painfully relatable moments, and plenty of crowd favorites, alongside fresh material that promises to keep the laughs coming. The show starts at 9pm. Tickets are available through TicketsMarche.

Hamaki is kicking off El Arena’s summer concert season, taking the stage tonight. Expect a high-energy night of the pop singer’s fan-favorite hits and first-ever live performances from his new album. The show starts at 5pm — grab your tickets on Tazkarti before they sell out.

Still feel like a kid at heart? New Cairo’s City Gate is embracing your inner child with The Play Festival, called Egypt’s “first play festival for kids above 21.” Taking place today at 5pm, the event transforms the venue into a playground centering music, movement, arts, games, and challenges. Curious? You can grab your early-bird tickets now through TicketsMarche.

Pop icon Tamer Ashour is set to take the stage at The Mall ofMansoura for the mall’s grand opening tomorrow. Expect a high-energy show packed with his biggest hits. The concert kicks off at 8pm — tickets are available on TicketsMarche.

🎤 HAPPENING NEXT WEEK-

Up for a classy summer evening? Omar Khairat returns to the Cairo Opera House in Zamalek for a two-night run this Sunday, 28 June, and Monday, 29 June. The acclaimed composer will take over the opera’s main hall for a magical evening featuring his beloved compositions and symphonies. The concerts kick off at 7:30pm — you can get your tickets via Tazkarti.