Smart & Value is the first NBFI company to land on the FRA’s list of violators

Good morning, everyone. We have three stories today that are each, in their own way, about what Egypt’s assets are actually worth.

The most strategically interesting piece is the logistics play. Egypt is building a footprint in the Red Sea and East African port network — the corridor linking Asian manufacturing to African and European markets. We ask industry sources whether this adds up to a coherent strategy or a series of opportunistic moves.

On the state ownership front, the government is waiting on EgyptAlum. Officials want to triple or quadruple its valuation before committing to either a stake sale or a transfer to the Sovereign Fund — and they say serious acquisition interest is already on the table, including from Gulf and European buyers.

And in M&A: A consortium of NCC and Escom is moving to lift its Spinalex stake to just under the mandatory offer threshold. For investors, the company comes cheap — due to weak earnings — and offers attractive assets.

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First company on the list

The Financial Regulatory Authority (FRA) has put NBFI company Smart & Value on its list of violators, according to a decision by the regulator seen by EnterpriseAM. The FRA alleges that Smart & Value did not follow the proper procedures for governing companies authorized to collect funds for investment.

Why it matters: Smart & Value seems to be the first to end up on the list since the FRA

set up a registry for individuals and companies that violate non-banking financial regulations earlier this year. The registry includes separate lists for unlicensed operators, entities with final convictions, and formerly licensed market participants who have been hit with administrative measures. The aim is to give clients a clearer way to check who they are dealing with before money changes hands.

The bigger picture: The move comes as the FRA cracks down on unlicensed investment and financing activity. The authority has warned that inviting the public to invest funds without approval or a licensed structure exposes operators and retail investors to regulatory risk.

Banque Misr in Saudi

Banque Misr has launched full banking operations in Saudi Arabia, inaugurating a branch in Riyadh after securing final approval from the kingdom’s Central Bank, according to a statement from the lender.

A corporate-first strategy: The Riyadh branch will focus initially on corporate and institutional banking — supporting Egyptian companies operating in Saudi Arabia and offering financing to Saudi corporations and investors with existing or prospective investments in Egypt.

Part of a broader regional push: Banque Misr’s move comes as state-owned banks accelerate their regional ambitions. The National Bank of Egypt (NBE) opened its first Saudi branch in Riyadh last October, targeting corporate banking and trade finance, and is eyeing an outpost in Iraq. It is also building a tech-forward investment banking hub in Dubai, tapping former Onebank chief Sherif Elbehery to lead its UAE operations and upgrade its DIFC licence to a full Category 1 authorization.

The pattern: Egyptian lenders are increasingly following their corporate clients beyond domestic borders. As Gulf capital flows into Egypt continue to grow and Egyptian businesses expand across the region, lenders are positioning themselves closer to cross-border transactions, trade finance, and corporate banking prospects.

PSA-

WEATHER- Today is another day of the heatwave we are facing in Cairo, with a high of 36°C and a low of 25°C, according to our favorite weather app. Starting tomorrow, temperatures are expected to gradually ease to 34-35°C.

It’s nicer in Alexandria, with a high of 31°C and a low of 23°C.

The big story abroad

Nato’s two-day summit kicks off tomorrow in Ankara and discussions are expected torevolve around the ongoing Russia-Ukraine conflict, the US-Iran war, and US President Donald Trump’s comments on Greenland. Trump demanded “loyalty” from the coalition ahead of the summit, where he is scheduled to meet with the heads of state of Turkey, Syria, and Ukraine.

The spread of AI use in financial services has triggered an “arms race” for regulators, according to Sheldon Mills, executive director of the UK’s Financial Conduct Authority. Mills argues that regulators need greater powers to monitor the rapid growth of AI, namely large language models, and underlined concerns over the softwares’ bias, opaque pricing, and personalized manipulation.

Meanwhile, in aviation: British low-cost airline EasyJet has agreed in principle to the fifth takeover bid proposed by global alternative investment firm Castlelake LP, valuing the company at USD 6.9 bn. The budget carrier has been struggling with rising jet fuel prices and muted demand since the regional war broke out.

Trump finagles Balogun favor from FIFA? FIFA will allow the US top goal scorer Folarin Balogun to play in the upcoming showdown with Belgium — despite the footballer earning a red card in his last match — after Trump urged FIFA President Gianni Infantino to review the suspension. This move marks the first reversal of its kind since 1962 and has drawn criticism from many, including the Belgian federation.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We audit Egypt’s new national universities nine months after their first graduating class to determine if surging enrollment is translating into labor market traction.