House of Reps extends its closed session on whether to authorize the armed forces to support Saudi Arabia

Good morning, ladies and gents. It’s a big week for the EGX as Banque du Caire opens its IPO books today and MNT-Halan starts trading tomorrow, with a strong foreign demand to BdC along with a solid debut for MNT setting up the rest of the state’s IPO program nicely, starting with Misr Life.

BdC is selling a 30% stake at EGP 4.82-5.30 a share, and Banque Misr can take that to 45% if demand is there, which would raise as much as EGP 36.4 bn (c. USD 680 mn). Institutions have until Friday and retail until 28 October. A strong book would make it easier to sell what’s coming next, starting with Misr Life, which a government official tells us has been pushed to December to make way for BdC. Our top story this morning has the numbers, the valuation, and the bank’s books.

Meanwhile, the House has extended its closed session on authorizing the armed forces to support Saudi Arabia by two more days, with no decision yet, parliamentary sources tell us. MPs first met yesterday, hours after the National Defense Council, chaired by President Abdel Fattah El Sisi, pledged “all necessary and possible forms of support” to the Kingdom, and they resume at 1pm today. More on that in what we’re tracking today.

Over in the economy, the next IMF mission is coming within weeks, and we’re in pretty good shape. Divestments are working in our favor, senior government sources tell us, especially if the BdC float rises. But some gears still need to be greased. A Tax Authority official tells us one measure the IMF wants is still under debate, and might not be resolved by the time the mission lands in Cairo next month. We have the details on what’s working and what’s not below in the news well.

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No vote yet on Saudi Arabia

The House of Representatives has extended its closed session on whether to authorize the armed forces to support Saudi Arabia by two more days. MPs met yesterday without reaching a final decision, and the session resumes at 1pm today and continues tomorrow to hear from the rest of the MPs waiting to make their case, parliamentary sources tell EnterpriseAM. Speaker Counselor Hisham Badawi gave the floor to the heads of the parliamentary blocs before adjourning yesterday’s sitting, Akhbar El Yom reports.

The session came hours after President Abdel Fattah El Sisi chaired a meeting of the National Defense Council. Pointing to the escalating attacks on the Kingdom, the council decided to stand in full solidarity with Saudi Arabia and provide “all necessary and possible forms of support” to defend its security, stability, territorial integrity, and Islam’s holy sites, the presidency said in a statement. It also pledged to step up diplomatic efforts with regional and international partners to bring tensions down across the region and settle its crises peacefully. The House speaker, the prime minister, and the defense, foreign, finance, and interior ministers all attended.

Why a closed session: The House is following the procedure the constitution sets for any decision to send the armed forces on a mission abroad, which requires the president to consult the National Defense Council and secure the backing of two-thirds of MPs. Article 130 of the House’s internal rules says that vote must take place in an urgent closed session called at the president’s request, Akhbar El Yom notes. No decision on deploying troops has been announced, and the council’s statement spoke only of providing “all necessary and possible forms of support” to the Kingdom.

REMEMBER- The president asked the House on Saturday to hold an emergency session to authorize “any measure” to defend the Kingdom if Riyadh asks, stressing that Egypt seeks only to defend and has no intention of attacking (watch, runtime: 32:47). Foreign Minister Badr Abdelatty had already pledged Egypt’s support for Riyadh “without any reservation” last week as the Kingdom faces Houthi missile and drone attacks.

After you

The sale of a 20% stake in Misr Life Ins. is now penciled in for December, after the government nudged it back to make way for Banque du Caire’s (BdC) IPO, a senior government official tells EnterpriseAM. The company’s fair value study is the holdup, but investor appetite has remained steady while it’s being finalized, the official says.

The December date is tentative and depends on coordination between the Investment Ministry, the Sovereign Fund of Egypt (SFE), and the offering’s advisors, the official says. The ministry is putting its earlier target for EGP 12-14 bn in proceeds on hold until the valuation and the price range are set. In the meantime, demand still looks healthy: the latest roadshow in London and Dubai drew strong interest from international institutions and regional banks, and some are already lined up for the private placement, the official tells us, without naming them or saying how much they could put in.

The new date pushes the sale to the very end of our IMF program, which expires on 15 December. The Fund counted on the IPO for its seventh review, which required an agreement locking in the sale, with proceeds expected by end-August, according to its latest staff report (pdf). Investment Minister Mohamed Farid was initially aiming to close the sale between June and July.

REMEMBER- Misr Life is owned by Misr Ins. Holding Company, part of the SFE. The holding company’s shareholders signed off on the sale in June, a month after the fund tapped EFG Hermes as sole global coordinator and bookrunner. Interest was already building in August. The EBRD was negotiating to buy up to 5% before the IPO, and five institutions were vying for a 10% private placement tranche, we reported at the time. The size of the placement and whether to bring in strategic investors were still under discussion, though. Last month, the board approved a 10-for-1 stock split, cutting the nominal value to EGP 1 from EGP 10 and lifting the share count to 5 bn from 500 mn, with issued capital unchanged at EGP 5 bn.

The pipeline behind it is filling up. The government still needs close to USD 1 bn in divestments to hit its USD 1.5 bn target before the IMF program ends in December, with BdC and other state stake sales expected to help. For 2027, officials are putting together a listing calendar that could bring one or two companies to market each month, depending on market conditions and readiness, and preparations are underway for the remaining petroleum-sector offerings, the official says. So far, 24 of the 30 companies slated for temporary listing this year have completed that step.

Alam El Roum gets an investment zone

Qatari Diar’s Alam El Roum now has its own investment zone, giving the USD 29.7 bn North Coast megaproject a package of incentives and a dedicated channel for approvals. The zone was launched yesterday at a ceremony attended by EnterpriseAM. It covers about 4.9k feddans along the Alexandria-Matrouh coastal road and is being developed by the real estate arm of the Qatar Investment Authority.

The designation, approved by the Cabinet last month, puts Alam El Roum on the same footing as Egypt’s other investment zones. That means approvals through the General Authority for Investment and Freezones’ (Gafi) single window, a flat 2% customs duty on imported machinery, and a deduction of up to 50% of investment costs from taxable income for up to seven years. It’s the second Gulf sovereign-backed megaproject to get the designation after Ras El Hekma.

More zones are coming. Qatari Diar is already in talks with Gafi for more investment zones in Egypt beyond Alam El Roum, Gafi head Mohamed Awad told EnterpriseAM on the sidelines of the launch, declining to give details since “legal drafting and contracts take a long time, and the authority leaves it to each company to announce the details of its future projects when it sees fit.” The regime, created under the 2017 Investment Law, lets an investor hand Gafi the job of clearing procedures and permits so they can focus on their core business, Awad said. Alam El Roum is the 21st zone decreed since 2017 — 12 are operating and nine are still under construction, he said.

REMEMBER- Construction is already underway. Qatari Diar launched the EGP 220 bn first phase in August, covering 4 mn sqm with about 1.4 mn sqm of built-up area, four hotels with more than 1k rooms, and a 50-berth marina, with first deliveries due in 2030. The wider project rests on a November 2025 agreement under which Diar pays USD 3.5 bn for the land and contributes USD 26.2 bn in kind, while the New Urban Communities Authority takes a 15% share of revenues once costs are recovered. The land payment has already shown up in the budget, where EGP 166.8 bn in one-off Alam El Roum proceeds lifted last year’s primary surplus.

PSA-

WEATHER- Cairo keeps cooling today, with a high of 27°C, and a low of 18°C — two degrees down on yesterday as the autumn slide continues, according to our favorite weather app. Expect morning fog on the roads and a slight chance of light rain.

It’s holding steady on the coast in Alexandria, with a high of 26°C and a low of 18°C.

The big story abroad

Europe takes to the streets: Protests have erupted across the continent, from Spain, France and Portugal to Italy, Belgium and Albania, fueled by frustration over social and economic problems. School conditions and the cost of living, particularly housing, are among the main drivers of the unrest.

Accenture weighs China sale: Accenture has hired JPMorgan to conduct a strategic review of its China business, which could lead to a sale worth up to USD 1.5 bn. The IT consultancy wants to focus on its fastest-growing operations and show investors it can adapt to AI. Private equity firms and strategic buyers are expected to show interest. Accenture may keep a significant minority stake to facilitate continuity for customers.

Daiichi Life Group launched a bid to acquire the remaining 79.5% of shares in Challenger for roughly AUD 7.9 bn (USD 5.5 bn). Daiichi Life Group, a Japanese ins. firm, is offering to pay AUD 11.80 per share, roughly 20% higher than Friday’s closing price.

*** 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 look into the new “8ones” hotel training schools, run with Italian partners, which aim to bring experienced staff into the country’s growing hospitality sector