Egypt’s economy grew, and urban inflation slowed down

☀️ Good morning, friends, and happy weekend. We’ve got a packed issue this morning, so let’s dive right in. If you have business guests or partners visiting from abroad this season, today’s guide covers where to actually take them after hours — the kind of places that do the relationship-building work a conference room can’t.

Elsewhere in today’s issue: We also have a novel by Youssef Rakha that’s worth clearing a weekend afternoon for, Practical Magic revisited ahead of its sequel, and a closer look at a recent episode of The Diary of a CEO — which needs no introduction but got one anyway.

But first, your weekly recap…

🗞️ LAST WEEK IN 3 MINS-

ECONOMY-

The country’s economy grew 5.1% in FY 2025/26, accelerating from 4.4% a year earlier. Growth came in at 4.7% in 4Q, easing from the 5.0% we saw in 3Q, but the full-year outturn still comfortably beat the IMF’s latest 4.6% forecast, though marginally below EBRD’s updated 5.3% projection in its June 2026 Regional Economic Prospects report.

ALSO- Urban inflation slowed to 14.5% in August, defying forecasts of a pickup — and undershooting the central bank’s near-term call. Annual urban inflation eased from 14.9% in July, according to Capmas data (pdf), even as a Reuters poll of 17 analysts had pointed to an acceleration to 15.5% — with the softest forecast in the range at 14.6%, still above the actual results. Prices rose just 0.1% m-o-m, according to the data.

AND- Fitch Ratings expects current account deficit to shrink to 2.7% of GDP in FY 2026/27, down from c. 3.4% in FY 2025/26. Fitch points to a diversified external financing base as evidence that the country’s USD needs are more manageable than the headline deficit number alone suggests.

DEBT-

Nawy’s mortgage arm Nawy Now has picked up another EGP 633 mn from institutional investors after Synergy Capital’s asset-management firm, Misr for Financial Investments, closed the second issuance of its shariah-compliant, Ijarah-based fixed-income fund. The book came in 43% above the first issuance and takes the program to some EGP 1.08 bn against a five-year, EGP 5 bn target — a little over a fifth of the ceiling.

DEVELOPMENT-

The World Bank has flagged “high” fiduciary risk on its USD 440 mn loan to modernize railway safety along the Alexandria-Cairo-Nag Hammadi corridor — and more than five years in, the project’s lead safety metric hasn’t moved. The loan is run by Egyptian National Railways under the Transport Ministry. Fiduciary is the only risk category the Bank has escalated since approval: everything else, from macroeconomic to technical to stakeholder risk, sits where it did in March 2021.

INDUSTRY-

China’s Linglong Group signed an MoU with the Industry Ministry for a USD 2 bn integrated tire complex in Borg El Arab. The complex will produce tires for passenger cars, buses, and heavy equipment, plus conveyor belts. It will also fold in upstream feeder industries — carbon black and steel cord — to build a complete local value chain. Exports will target Europe and the US alongside the domestic market.

AND- The Suez Canal Economic Zone added nine new industrial projects in Sokhna — the second nine-plant opening package this year. The zone is deepening its manufacturing base across medical equipment, building materials, textiles, chemicals, mining, engineering, artificial turf, and LED lighting.

PHARMA-

The government is preparing to launch a new drug pricing system in the coming days that keeps mandatory pricing but makes it more responsive to exchange-rate and cost swings — while handing locally manufactured products a structural price advantage over imports. The framework will be finalized after meetings with local and foreign manufacturers.

INVESTMENT-

The local arm of fintech unicorn MNT-Halan has taken its first step toward a listing on the EGX. MNT Tech Holding for Financial Investments has filed to list its shares on the exchange’s main market. The application covers issued capital of EGP 160 mn, divided into 1.6 bn shares at a nominal value of EGP 0.10 each.

AND- The Sovereign Fund of Egypt (SFE) has set up a dedicated sub-fund for industrial investment with EGP 10 bn in authorized capital and EGP 1 bn in issued capital — of which EGP 500 mn is paid in now, with the rest due within five years. The fund will target export-oriented manufacturers to bring in more FX, deepen local content, and localize technology. Its term runs for 99 years.

ENERGY-

The Mediterranean-focused oil producer Energean is nearing an agreement to merge three concessions that could pave the way for it to double production in the country. The firm has agreed to principal terms with the Egyptian General Petroleum Corporation (EGPC) to combine Abu Qir, North El Amriya, and North Idku into a single concession with improved fiscal terms and higher gas pricing.

AUTOMOTIVE-

Egypt’s auto market grew 15.6% y-o-y in July to 18k units (+3.3% m-o-m), with buses and trucks once again outpacing passenger cars. Passenger cars — still the largest slice at 71% of volume — rose 4.1% m-o-m to 12.9k units, while buses jumped 62% to 1.8k units and trucks climbed 37.3% to 3.3k units.

TECHNOLOGY-

Vodafone Egypt’s business arm is teaming up with Elsewedy Electric and Cassava Technologies to build what they say will be our largest data center. The project will target 20 MW of capacity within its first three years before scaling up to 192 MW. The joint venture expects to draw some USD 200 mn for the facility’s first phase.

FINANCE-

Misr for Central Clearing, Depository, and Registry (MCDR) has entered final testing for its centralized securities lending and borrowing (SLB) system, with a limited pilot launch scheduled for November alongside the EGX, the FRA, and select brokerages.

The mechanics of retail with Baraka’s Ahmed Ragab: After almost 50 years of competition, why would two companies choose to merge? Is it as simple as the big entity buying the smaller one, or is there more to the story?

On this episode of Making It, Ahmed Ragab, CEO and Partner at Baraka Retail Group, joins Patrick to share how things actually played out for him.

Listen to the episode on: Apple Podcasts | Spotify | Anghami | YouTube

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🌍 AROUND THE WORLD IN SEVEN DAYS-

This week’s headlines were dominated by the sharpest naval exchange in the US-Iran war in weeks — US forces permanently disabled two Iranian crude tankers — before Iran abruptly signaled that a Hormuz shipping agreement could be finalized within days. Here’s the rundown.

US Central Command struck three Iranian crude oil tankers — permanently disabling two — after Iran targeted two US Navy warships in the Strait of Hormuz. The IRGC said it had struck vessels taking “unauthorized routes” through the waterway; no US personnel were harmed. The exchange marked a significant re-escalation after a month of relative quiet in the six-month conflict. By Tuesday, Iran’s foreign ministry signaled that a shipping agreement with Oman is days away — involving a temporary safe route for energy supplies through the waterway. On Wednesday, Iran retaliated by launching ballistic missiles at a US military base in Jordan and claimed attacks on 10 vessels near the Strait of Hormuz.

MEANWHILE- The escalating war drove oil prices back to over USD 100 per barrel, hitting their highest levels since July as fears rose over prolonged disruptions to regional supply.

Trump said on Wednesday that he expects the war with Iran to end after November’s midterm elections, which are nearly two months away, and says oil prices are likely to tumble downward only after the elections.

IN EUROPE- Germany’s far-right Alternative für Deutschland secured 44% of the vote in Saxony-Anhalt’s regional elections — vaulting it into first place and marking a historic result for the party, though it fell short of the absolute majority needed to govern a German state outright for the first time since the 1930s.

IN THE BUSINESS PRESS- The AI investment boom is hitting consumer electronics: memory chip costs have risen fivefold in 2026, driving up prices on phones, laptops, and gaming consoles by as much as 20% and reversing decades of cheaper, more powerful devices. Nigeria’s Dangote Petroleum Refinery aims to list on the Lagos exchange in what would be Africa’s largest-ever IPO — raising at least USD 1.6 bn from retail investors across the continent at USD 0.4 per share. Beijing injected USD 54 bn into state banks and insurers to shore up solvency ratios squeezed by persistently low interest rates.

IN TECH NEWS- In its launch event on Thursday, Apple announced the iPhone Duo — its first foldable smartphone — alongside a spate of new products, including the iPhone 18 Pro, AirPods 5, and Apple Watch Series 12. Check out our full breakdown here.

The EnterpriseAM Egypt Forum is back — and we’re devoting the full day to the singular set of questions on everyone’s mind: What does AI actually mean for your company, your people, your economy, your own job — and your kids’ future?

Every session on stage answers one question: “So, what do I actually do about it?”

Join us on 5 October in Cairo. Seats are limited, and attendance is by invitation only.

Request your invitation here.

☀️ THE WEATHER THIS WEEKEND-

Cairo continues its hot streak this weekend, bringing sunny highs of 34°C and clear, cool lows of 23°C both today and tomorrow, according to our favorite weather app.

🎤 HAPPENING THIS WEEKEND-

Movie lovers, it’s your lucky day. Touring international film festival MedFest Egypt is returning to AUC Tahrir Square for a five-day run until Monday, 14 September. This year’s program, themed “Beyond the Scene,” packs in film screenings, conversations, and workshops. You can choose between the Full Pass, which includes workshop registration, or the Festival Supporter Platinum or Gold Badge, all available through TicketsMarché. Workshop spots are limited, so hurry and secure your spot.

The Goats are back with a special Beyond the Scene show at this year’s MedFest Egypt at AUC Tahrir Square tonight. Your favorite comedians — Mohamed Moula, Marwan El Moslemany, Marwan Fares, and Mohamed Halim — will take the stage with their signature standup comedy, kicking off at 9pm. Tickets are available through TicketsMarché — just note that this is a separate event, and MedFest full-pass tickets do not grant entry.

How about an orchestra by the coast? Iconic composer Hisham Kharma is heading to Alexandria to perform live at Bibliotheca Alexandrina tonight. Led by maestro Nayer Nagui and accompanied by the BA orchestra, Kharma will bring his signature orchestral sound to the iconic venue. The concert starts at 8pm — you can get tickets through Bibliotheca’s website.

Calling all career starters: iCareer is helping fresh graduates and students take their first steps into the job market at Next Summit, happening tomorrow from 9am to 9pm at The Greek Campus in Downtown Cairo.

“Not just another career fair,” the event promises a real hiring and career-readiness experience, bringing together 50+ employers, mentors, industry experts, and young professionals. The day offers a packed program of masterclasses, workshops, coaching circles, networking activities, open roles, and more. You can get tickets through the event’s website.