The CBE issued updated anti-money laundering rules binding on banks and their foreign branches

Good morning, lovely people. Markets run on confidence, and today’s issue is full of stories about who’s putting money where, and why. From a fintech IPO testing foreign appetite for Egyptian stocks, mining exploration picking up pace, and a first-of-its-kind plan to shield the budget from disaster shocks — here is what’s moving.

From the EGX hall: MNT-Halan’s Egyptian arm formally kicked off its IPO late last week, and 20% is on offer. The local arm was pitched at up to USD 1 bn during roadshows that began in June. What matters now isn’t the first-day retail pop (nobody doubts it), but whether foreign institutions fill their allocation. A strong foreign showing would make the next wave of IPOs — Banque du Caire, Misr Life — a much easier sell.

We’ve got more good news from the Egypt Mining Forum. Naguib Sawiris’ mining firm is bidding for five more Eastern Desert blocks; Ankh Resources has moved into Phase 2 drilling at Wadi Dara; and Xcalibur is waiting on final approvals for its aerial survey that would give Egypt its first comprehensive geological picture in 40 years.

MEANWHILE- The Finance Ministry is studying catastrophe bonds for the first time — a push to shift severe disaster risk onto ins. and capital markets. A 1-in-100-year event would cost up to USD 1.85 bn, but the emergency reserve can run as thin as EGP 18 bn (USD 345 mn) by year-end. The IMF, World Bank, and IFC are all at the table to help design the strategy.

***

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.

***

Delighted to welcome Mirna Arif as a guest speaker at the 2026 EnterpriseAM Egypt Forum.

Mirna Arif is an accomplished business leader with over two decades of cross-sector experience across Europe, the Middle East, and Africa. She currently serves as General Manager for Microsoft’s Middle East and Africa Growth Markets, overseeing operations across Egypt and other emerging markets, with a focus on digital transformation and inclusive economic growth.

In January 2026, Mirna was appointed by H.E. President Abdel Fattah El-Sisi as a Member of the Egyptian Parliament (House of Representatives), a testament to her dedication to public service and her commitment to shaping Egypt’s future through policy, technology, and inclusive development.

She was previously General Manager of Microsoft Egypt, the first woman to hold the role, and has held senior leadership positions at Microsoft Dubai, GE Oil & Gas, and Schlumberger. She was named among Forbes Middle East’s 100 Most Powerful Businesswomen in both 2024 and 2025, and serves on the boards of Banque Misr and the Egyptian National Council for Women.

Registration is now closed. Thank you to everyone who registered. We look forward to welcoming you on Monday, 5 October.

Digital ID meets AML

The CBE’s anti-money laundering unit issued updated customer due diligence guidelines for banks operating in Egypt and their foreign branches, according to a circular (pdf). The updated framework formally incorporates new banking practices that have emerged since the 2020 amendments to the Anti-Money Laundering Act, including electronic know-your-customer (eKYC).

The rules also codify risk-based customer acceptance policies, general account opening rules, and the use of third-party banking agents to conduct customer due diligence. The CBE had already laid the groundwork for this integration when its board approved the eKYC rules in August, letting customers open accounts and access banking products entirely through digital channels.

Thresholds: Banks must execute full due diligence for any occasional transaction exceeding USD 15k (or its foreign currency equivalent), whether processed in a single transfer or across multiple linked payments. Below that threshold, they must at a minimum collect and verify basic identity data from valid official documents. However, cross-border wire transfers require verification regardless of size.

IN CONTEXT- These regulations come after US officials proposed cutting Banque Misr’s UAE branches off from correspondent banking access to US financial institutions in late August. The US Treasury Department’s Financial Crimes Enforcement Network alleged that the branches processed around USD 1.8 bn between January 2024 and June 2026 for 103 companies that may be linked to Iranian shadow-banking networks.

Rescuing the assembly line

A new EGP 1 bn fund that takes equity stakes in distressed factories and restructures them so they can resume operations has launched, according to a statement from the Central Bank. The Distressed Factories Restructuring Fund targets industrial firms with viable operations that have hit financial or operational trouble. CI Capital manages it and the head of the Federation of Egyptian Industries, Mohamed El Sewedy, chairs its investment committee. Five banks back it: the National Bank of Egypt, Banque Misr, the Arab African International Bank, the Agricultural Bank of Egypt, and the Export Development Bank of Egypt.

The mechanics: The fund takes equity and works alongside management rather than lending, Assistant to the Industry Minister Emad Abdel Hamid told us last December. The first phase targets companies with EGP 30-40 mn in debt, focused on engineering and food. CI Capital picks targets using quantitative and qualitative criteria and feasibility studies; net assets get valued twice a year by independent FRA-registered advisers. Factories apply through the Industry Ministry’s Manufacturers Support Platform.

IN CONTEXT- The Cabinet approved the fund’s structure in mid-August as a joint-stock company under the General Authority for Industrial Development, governed by Capital Market Law No. 95 of 1992. The Financial Regulatory Authority (FRA) approved the fund as a closed-ended private-equity vehicle (Fund No. 1033) on Friday, with subscriptions open today.

Cairo, Addis trade PNGs

Egypt and Ethiopia are exchanging persona non grata (PNG) declarations. Cairo declared Ethiopian embassy counselor Egazi Emelo Borougi PNG late last week and gave him 48 hours to leave the country. Addis Ababa had earlier declared a senior Egyptian diplomat PNG on similar terms, without giving a reason.

IN CONTEXT- The declarations came after Ethiopia shut its embassy in Asmara, Eritrea and declared 10 Eritrean diplomats PNG. Eritrea responded by severing diplomatic ties with Ethiopia. Addis Ababa claimed on 28 September that Egypt, Sudan, and Eritrea were backing an opposition alliance led by the Tigray People’s Liberation Front. Hours later, Cairo issued a Foreign Ministry statement saying, without naming Ethiopia, that claims questioning Egypt’s commitment to non-interference were “null and void.” Egypt’s foreign policy is built on “respect for the sovereignty of states and their territorial unity and integrity,” as well as non-interference in the internal affairs of other states, Foreign Ministry spokesman Nader Zaki said.

Data point

USD 31.2 bn — that’s where the banking sector’s net foreign assets (NFAs) stood at the end of August 2026, the highest level since January 2020, according to a Central Bank of Egypt (CBE) statement. Commercial banks held USD 12.4 bn of total NFAs, while the CBE reached USD 18.8 bn during the month.

PSA-

WEATHER- Cairo is enjoying another settled autumn day today, with a high of 30°C, and a low of 20°C — the overnight is a touch cooler than recent days, according to our favorite weather app.

It’s noticeably cooler on the coast in Alexandria too, with a high of 27°C and a low of 20°C.

The big story abroad

The White House has created a task force to assess the risks and prospects of AI technology and recommend what role the ​federal government should ​play in overseeing it. Known as the Super Intelligence Force, the new entity will be led by Director of National Intelligence Jay Clayton, possibly signaling the Trump administration’s intent to heighten AI oversight.

G7 countries agreed to release 100 mn barrels of crude and diesel from their strategic stockpiles in exchange for Washington withdrawing its threat to halt US fuel exports. The agreement follows pressure on US President Donald Trump from farm-state Republicans to ban fuel exports and relieve struggling farmers ahead of next month’s elections. The bloc will release the reserves over a four-month period. The full details of the plan have not been disclosed.

High bond yields? Bessent says relax: Treasury Secretary Scott Bessent stated that the recent rise in US Treasury yields reflects broader global trends and should not be a cause for concern. Bessent argued that the economic fallout from the conflict in Iran is obscuring solid US fundamentals, citing robust consumer spending and median wage increases that are keeping pace with inflation.