Good morning, friends. We lead this morning with a deep dive into venture capital firm A15, which is days away from closing its tenth exit, having already returned a massive 10.2x to its investors.

We also break down the government’s ambitious push to turn the Suez Canal Economic Zone (SCZone) into a grain storage and re-export hub. Structural hurdles like inland freight costs and the highly price-sensitive nature of the grain trade could make the economics tough to justify.

Also in the SCZone, China's Sany Group plans to build Egypt's first wind turbine factory that will feed the booming Gulf of Suez wind corridor. Also on our radar, natural gas is losing its VAT exemption for the first time as the government slaps a new EGP 20 table tax on the fuel to ease the budget burden.

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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.

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Next stop: Baghdad

Talaat Moustafa Group’s (TMG) Iraqi subsidiary secured land and a license for a USD 10 bn megaproject in Baghdad, according to a press release (pdf). Located within Baghdad Financial and Economic City, the 12.8 mn sqm project will house 250k residents across 43k units, launching with a 16-year construction timeline and a 12-year sales window.

The breakdown: The project targets USD 18.8 bn in sales and a 20% gross margin, plus USD 108 mn in annual recurring revenues from its commercial and hospitality assets. The allocation boosts TMG’s total land bank to 128 mn sqm as it taps into Iraq’s untapped real estate market.

Why it matters: The Baghdad megaproject accelerates TMG’s drive to expand beyond Egypt and secure new sources of foreign-currency revenue. The move follows an initial push into Iraq earlier this year alongside other major Egyptian firms like Sawiris-owned Ora Developers and Edita Food Industries. It joins TMG’s USD 10.7 bn BananCity project in Riyadh and USD 4.7 bn of new developments in Oman. Back home, the launch of its EGP 1 tn SouthMed project on the North Coast helped drive the group to a record EGP 391 bn in total sales in 1H 2024.

Tweaking the VAT again

Natural gas is losing its value-added tax (VAT) exemption for the first time, slapping a flat EGP 20 per thousand cubic feet table tax on the fuel to ease the state’s budget burden, according to a newly approved Cabinet draft law (pdf). The amendments also extend a VAT suspension on production machinery and medical equipment to four years to stimulate local manufacturing and keep capital from getting locked up in red tape. The draft law will now move to the House for approval.

Why it matters: The state is broadening its tax net and dismantling long-standing exemptions to hit a record EGP 3.5 tn tax revenue target for FY 2026/2027 and shrink its EGP 2.7 tn financing gap. By steadily phasing out special tax treatments on goods like sugar, tea, professional services — and now gas — the government is aligning with IMF recommendations to unify the standard 14% rate and eliminate market distortions.

A breeze for Alcazar

The European Bank for Reconstruction and Development (EBRD) is considering a USD 200 mn loan package to back UAE-based Alcazar Energy Partners’ 500 MW wind complex in Ras Ghareb, according to two disclosures from the lender (here and here). EBRD could provide up to USD 100 mn each for the two 250 MW onshore wind projects, NIAT and Rasgha. Once operational, the farms will supply the state-owned Egyptian Electricity Transmission Company under a 25-year power purchase agreement.

Why it matters: The EBRD loans could make up a significant chunk of the USD 450 mn debt package Alcazar is raising to finance the overall USD 600 mn development. The Dubai-based firm inked an agreement last November to take over full ownership of the NIAT project from Siemens Gamesa, which will stay on board as a strategic partner to supply the turbines. The complex is expected to break ground in mid-2026, generating enough clean energy to power around 280k households.

IN CONTEXT- Gulf investors are increasingly becoming the primary engine for Egypt’s green energy transition, accounting for more than 60% (USD 20.8 bn) of the foreign direct investment committed to local wind and solar projects since 2015. Alcazar itself is expanding its local footprint: The firm was reportedly close to finalizing a USD 416 mn takeover of the 580 MW Gabal El Zeit wind farm in March, and reached an agreement back in 2024 with the government to build a USD 2.5 bn hybrid renewable energy station in Zafarana.

GAFI washes hands of shareholder dispute

The General Authority of Investment and Freezones’ (GAFI) Grievance Committee wrapped up a dispute that threatened to force a board election at the Egyptian Resorts Company (ERC). Instead of ruling on the merits, the committee said the matter was legally void since the court-blocked 16 May meeting date already passed without the vote taking place, according to a statement (pdf) obtained by EnterpriseAM.

The backstory: A minority shareholder bloc holding a 25% stake had been trying to oust the board to secure a massively marked-down EGP 10 to the USD exchange rate for their Sahl Hasheesh land plots. However, the group lost its leverage after ERC won an unappealable international arbitration award which cancelled the bloc leaders’ 2015 land contracts, forcing them to return the plots for a USD 3.87 mn refund.

Still dead in practice: “Theoretically, the order is still on the books, but practically speaking, the decision no longer exists,” Matouk Bassiouny & Hennawy partner Amr Ehab, who represented ERC in the dispute, tells EnterpriseAM. He previously told us that even if the committee rejects the grievance, the Administrative Court’s interim ruling holds on its own.

What’s next: For the assembly to be reconvened, GAFI would have to issue a new directive. However, the Administrative Court’s ruling, which found the original decision “likely to be annulled,” makes that a much harder lift, Ehab says.

One step closer to stamp taxing EGX transactions

Almost time for stamp tax to replace capital gains tax: The Madbouly government has sent the amended stamp tax draft law — which replaces the capital gains tax with a tiered stamp tax of 0.05% on market makers and blue-chip stocks and 0.1% on all other shares — to the House, according to a document seen by EnterpriseAM. The percentage is split equally between the seller and the buyer. Sources previously told us that we can expect the government to introduce a stamp tax on EGX transactions next month.

The introduction of the tax is expected to boost tax revenues by EGP 845 bn next fiscal year, compared to this year’s target of EGP 722 bn, which went uncollected because the law had not yet been passed.

Want the full story? We dove into the tax last month in our coverage of a wider tax package that also included changes to the VAT. Check it out here.

Time to pay up

State-owned firms could soon face a new levy: The Madbouly government has greenlit a draft law that imposes a 5% levy on the net income of wholly state-owned companies, according to a document seen by EnterpriseAM. The measure aims to diversify state revenue streams amid global economic pressures.

The fine print: Companies in which the state or public bodies hold more than one third of capital will be required to cough up the equivalent of 4% of net income. Some entities will be subject to exemptions, provided the relevant authorities give their thumbs up.

Data point

USD 34.9 bn — that’s how much Egyptians abroad sent home during the first nine months of FY 2025/2026, marking a 32% y-o-y jump from USD 26.4 bn recorded in the same period last year, according to a Central Bank statement (pdf).

The war didn’t hit remittances as some feared. The CBE's data reveals that USD 12.8 bn was channeled into the economy during 3Q (January-March). In March alone, remittances rose to about USD 5.5 bn, up from USD 3.8 bn in February and USD 3.5 bn in January.

PSA

WEATHER- It’s warming up in Cairo today, with a high of 36°C and a low of 24°C, according to our favorite weather app.

It’s also warm in Alexandria, with a high of 31°C and a low of 21°C.

Earning well is not the same as investing well — and for most mid-level executives and entrepreneurs, the gap between the two is wider than they’d like to admit. The financial landscape has shifted. Regional markets are opening up, AI is rewriting how portfolios get managed, and Real Estate Investment Trusts (REITs) are entering the conversation.

And the questions that used to feel straightforward — buy or rent, fund the startup or play it safe, finance the car now or wait it out — are harder to answer than ever.

In Issue 2 of EnterpriseAM Money Matters, we get into the decisions that don’t have easy answers, because at this stage, playing it safe is the riskiest move you can make.

Coming straight to your inbox — Wednesday, June 3.

The big story abroad

Where do the ceasefire negotiations between the US and Iran currently stand? After Tehran said it suspended negotiations with Washington due to Israel’s recent ramp up of its assault on Hezbollah in Lebanon US President Donald Trump claimed that he brokered a truce after talks with Tel Aviv and the Iran-backed group and that US-Iran negotiations are progressing at a “rapid pace.” Lebanon later announced a partial ceasefire, despite reports of ongoing strikes by Hezbollah.

Meanwhile, in the AI world: Anthropic has confidentially submitted paperwork for its IPO which could happen as early as this fall, potentially putting the startup ahead of OpenAI and its listing schedule. The Claude maker did not disclose the number or price of shares to be offered.

Another tech player is looking to raise funds for AI investment: Alphabet will sell USD 80 bn worth of stock to fund investments in computing infrastructure to meet customer demand for AI products. The company intends to source the funds via underwritten offerings, a USD 10 bn investment from Berkshire Hathaway, and selling Class A and Class C shares.

A new strategy for the golden arches? McDonald’s has launched its new growth strategy to attract diners, which will include higher-quality food, restaurant upgrades, consumer-led innovation, and improved customer service. The strategy comes at a time where consumers are demanding more value for their money and competitors upgrade their offerings, CEO Chris Kempczinski said.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We look at how Karm Solar is testing biological barriers like Casuarina trees and quinoa to protect its solar arrays from desert dust storms.