Social Impact Capital set to up stake in CIRA Education to 88.7% as MTO comes to a close

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What We're Tracking Today

Housing initiative to offer private sector plots land in exchange for dedicating 30% of the plot to social housing

Good morning, friends, and welcome to the start of a new work week and hopefully the beginning of the end to Israel’s brutal war on Gaza as a ceasefire comes into effect starting in just over a couple of hours.

BUT FIRST- We’re super happy this morning to welcome Sekem as our newest commercial partner here at EnterpriseAM Egypt.

We’ve known Sekem as journalists — and trusted the company’s brands as consumers — for decades now. Sekem was founded in 1977 by the late Dr. Ibrahim Abouleish, who put principles of sustainable development and community engagement at the heart of his business model at a time when most companies had no clue what those words meant. Dr. Ibrahim was a national champion of desert reclamation and sustainable farming in Egypt.

The company is run today by our friend Helmy Abouleish, whose ethics and desire to serve community and nation alike we have long admired. Helmy recently spoke with us for Going Green, our weekly vertical on the green economy.

Sekem’s portfolio of companies, brands, and educational institutions range from the Isis line of organic products to Atos Pharma and Heliopolis University. Its products are sold at more than 90k points of sale nationwide, including supermarkets and pharmacies.

We like Sekem because, like Enterprise, the company has ambition — and because they share our passion for exports. Some 60% of its products are exported, primarily to Austria, the Netherlands, and France. The company is a regional pioneer in biodynamic agriculture and is on a mission to fight climate change and improve food security through their work with tens of thousands of Egyptian farms. It’s a model that Sekem is taking outside the nation’s borders, too.

Please join us in welcoming Sekem to EnterpriseAM. It’s thanks to them and our other partners that your morning read remains available to you without charge every morning.

PSA-

WEATHER- The sun is taking a break in Cairo today, with an overcast day forecast, along with a high of 20°C and a low of 13°C, according to our favorite weather app.

There’s little sun to be had over in Alexandria too, with a high of 19°C and a low of 12°C.

But make sure to take extra care on the roads today and tomorrow, with heavy fog forecast in the early hours throughout most parts of the country, the Egyptian Meteorological Authority warned. Seafarers are also being warned of high winds and waves reaching up to 3.5m expected in the Gulf of Suez, Gulf of Aqaba, and further down throughout the Red Sea.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

WATCH THIS SPACE-

Private sector real estate players may soon be given land in exchange for dedicating 30% of the plot to social housing, under an in the works initiative by the Housing Ministry’s Social Housing Fund, Tarek Shoukry, chairman of the Federation of Egyptian Industries’ (FEI) real estate division, told Al Borsa. Under the arrangement set to be finalized by June, developers will hand over the units to the government and will have free reign in the remaining 70% of the plot, he added.

IN THE SENATE-

Airport privatization is on the agenda at the Senate today, with senators reconvening after a two-week break to discuss plans to involve the private sector in the running, upgrading, and building of the nation’s airports. Civil Aviation Minister Sameh El Hefny will address the room and answer senators’ questions.

Remember: The Madbouly government first revealed plans last November to invite private sector players — including foreign companies — to take over the management of airports in the country in order to improve services and increase revenues collected by the state coffers. Momentum has been gaining around the project in the last couple of months, with the government announcing in October that the first phase of the private sector offering would include Cairo International Airport, Sphinx International Airport, El Alamein International Airport, Sharm El Sheikh International Airport, and Hurghada International Airport.

DATA POINT-

#1- Oil and gas companies have drilled 105 wells over the past six months, which Prime Minister Moustafa Madbouly attributed in his weekly presser to the government’s efforts at clearing arrears owed to international oil players and introducing fresh incentives to energy players. (watch, runtime: 42:58).

The breakdown: These wells — 95 oil and 10 natural gas — have added 63.7k bpd of oil and 271 mn cfd of natural gas to the country’s daily local energy production, which will help the state save some USD 1.5 bn in oil imports.

#2- Agricultural exports were up 15% y-o-y in 2024, increasing by 1.1 mn tons on the year before to come in at 8.6 mn tons, Agriculture Minister Alaa Farouk said in a statement.

THE BIG STORY ABROAD-

It’s a busy day in global news, with an approaching ceasefire in Gaza set to begin in just over a couple of hours, the commentariat in a frenzy ahead of Trump being inaugurated as the 47th president tomorrow, and TikTok’s US operations potentially getting thrown a lifeline by the incoming administration all battling for digital ink.

Our corner of the world is for the first time in a while leading with positive news, with a ceasefire between Hamas and Israel set to begin at 8:30am Cairo time after 15 months of a brutal assault on Gaza that has killed tens of thousands — of which the UN estimates 70% to be women and children. The Egypt, Qatar, and US-brokered agreement from today sets out a six week period that will see an end to the assault, the entry of much needed aid, and the release of 33 Israeli and 2k Palestinian hostages, followed by more released throughout the period, before the more fragile second and third phases seeking to put an end to the war for good begins. (Reuters | New York Times | Wall Street Journal | Bloomberg

But the likes of Netanyahu and other warhawks seem to already be laying the groundwork for a potential return to the war, with the Israeli prime minister saying in a televised statement just hours ahead of the ceasefire that the country’s “campaign is not over” and that he has both Biden and Trump’s backing to restart its assault on Gaza “if the second stage [of the ceasefire] is fruitless. (Guardian)

While over in business news, Trump signaled he may grant TikTok a 90-day extension to avoid a nationwide ban set for today, citing the need for a “political resolution.” The Supreme Court upheld the ban as recently as Friday over national security concerns, giving the ByteDance-owned company the choice of divesting from its parent company or closing down its US operations. (Financial Times | Reuters | Associated Press | Washington Post)

Somabay, the premier Red Sea holiday destination, and its partner ORCA Dive Club will showcase their exceptional diving and watersports experiences at boot Düsseldorf 2025. With vibrant coral reefs, pristine lagoons, and a collaboration with Duotone PRO-Center for kiteboarding and wing foiling, Somabay solidifies its status as a world-class hub for water enthusiasts. Don’t miss the chance to explore the unmatched beauty and offerings of this Red Sea gem.

Social Impact Capital’s acquisition of CIRA Education nears its close with 96.5% of targeted shares responding to offer

Social Impact Capital’s (SIC) takeover of CIRA Education is nearly sealed, with 96.5% of targeted shares — around 218 mn out of 226 mn shares — responding to the offer by Thursday’s deadline, Al Borsa reports. This brings the total value of the acquisition to EGP 3.4 bn.

The numbers:: SIC now owns some 88.7%, 516.8 mn shares, of CIRA — pre-acquisition SIC held a controlling 51.2% stake in the education player.

Remember: The Public Investment Fund-backed vehicle is trying to increase its stake in the EGX-listed educational services provider to 90% by acquiring an additional 38.78% share for EGP 15.5 a share.

What’s next: The MTO is expected to be wrapped up and shares transferred at some point this week, unnamed sources told the outlet.

SIC was originally hoping to acquire up to 100% of the company, but an amendment earlier this month by CIRA Education canceled a clause that stipulates the voluntary delisting of CIRA’s shares within two years of the acquisition’s execution, This meant that the company subsequently lowered its purchase offer to buy up to an additional 38.78% of CIRA’s shares — approximately 226 mn shares by our math — in a move that would bring its holding in the company to up to 90%.

We’ve seen this movie before: PIF has a proven track record of turning national players into regional champions, with the global growth of born-in-Egypt driller Ades Holding being a case in point. Since acquiring Ades and taking it private, PIF has helped Ades land contracts in Saudi Arabia and new markets, refine its strategy, and go public again on KSA’s Tadawul.

Advisors: Rothschild & Co is advising PIF, with Allen & Overy and our friends at Matouk Bassiouny doing legal duties. Our friends at EFG Hermes are advising El Kalla family, while White & Case is legal counsel.

Edita enters the Iraqi market through stake acquisition in Tuama Jebur Abbas

Edita steps into the Iraqi market through acquiring stake in Tuama Jebur Abbas: Edita Food Industries acquired 49% of Baghdad-based snack maker Tuama Jebur Abbas (TJA) through a capital increase in a USD 8 mn transaction, marking the snackmakers first entry into the Iraqi market, Edita said in a press release (pdf).

TJA? Tuama Jebur Abbas is a family-owned snack manufacturer that focuses on high-quality packaged snacks. Its local presence in the Iraqi market and factory make it “well-equipped to support Edita’s expansion in Iraq.”

Transaction details: The acquisition gives Edita access to a three-production line factory — two lines for cake and one for biscuits. The two sides will also implement a “technical know-how and manufacturing assistance agreement, focusing on maximizing production capacity, efficiency, and control.”

Introducing Edita Iraq: The acquisition agreement establishes Edita Iraq, giving Edita management control. “A trademark agreement will secure the rights to launch Edita’s brand portfolio in Iraq, broadening the company’s product range and market presence,” the release reads.

An untapped market: “Iraq’s growing economy and untapped snack food market present a unique opportunity for us to establish a national champion. We’re excited to partner with TJA, whose local expertise will help us bring Edita’s innovation to Iraqi consumers,” Edita Group Chairman and CEO Hani Berzi said.

Big investment plans: “This strategic investment is a significant milestone and will be a key growth driver for Edita. The acquisition of TJA will allow us to quickly enter the Iraqi market, with plans to invest over USD 27 million over the next three years,” Edita Chief Investment Office and Corporate Affairs Menna Shams El Din said. “These investments will expand operations, more than double production capacity, and unlock new opportunities in the packaged snack food market, delivering sustained long-term value for our investors.”

IMF, World Bank cut Egypt's growth forecast

IMF, World Bank slash Egypt’s growth outlook: The International Monetary Fund and the World Bank have slashed our growth forecast for the current fiscal year and the upcoming fiscal year in their respective World Economic Outlook (pdf) and Global Economic Prospects report (pdf).

For the current fiscal year: The IMF now sees the economy growing at a 3.6% clip during the current fiscal year, down 0.5 percentage points from previous forecasts. The World Bank is a tad less optimistic, having slashed this fiscal year’s growth forecast by 0.7 percentage points to 3.5%.

The Madbouly government is more optimistic: The Planning Ministry projects GDP growth of 4.0% for FY 2024-2025, supported by private sector reforms and gradual economic recovery.

As for FY 2025-26: The IMF slashed next fiscal year’s growth forecast by 1.0 percentage point and now expects the economy to grow 4.1% in line with the revised World Bank projection of 4.2%, down 0.4% from last summer’s projections.

The rationale: “In Egypt, growth is projected to strengthen to 3.5% in FY2024-25 and 4.2% in the following fiscal year, supported by private consumption growth amid gradually abating inflation, robust inflows of remittances, and improved sentiment. Investment in Egypt, particularly in infrastructure development, will be shored up by financing from the United Arab Emirates,” the World Bank said in its report.

The regional outlook: The World Bank expects growth in the MENA region to reach 3.4% in 2025 and 4.1% in 2026 up from 1.8% last year — the 2025 forecast is down 0.8 percentage points from previous forecasts, the lender attributed the downward revision to OPEC+ members extending voluntary oil production cuts. Meanwhile, the IMF sees the Middle East and Central Asia growing at a 3.6% clip in 2025 and 3.9% in 2026 — both forecasts were slashed 0.3 percentage points from the forecasts made last October.

Both institutions flagged heightened uncertainty in their regional outlooks due to ongoing conflicts in the Middle East, with the World Bank warning that the conflict “could push up global energy prices and inflation, and dampen activity, especially in regions more dependent on imported energy.”

SEKEM receives UNEP’s 2024 Champions of the Earth award

The UN Environment Programme (UNEP) has recognized SEKEM as one of its 2024 Champions of the Earth in the “Entrepreneurial Vision” category. As the only laureate from Africa and the Middle East to make this year’s list, SEKEM is proud to have earned this prestigious designation for its innovative work in combating land degradation and drought through biodynamic agriculture.

Founded by Dr. Ibrahim Abouleish in 1977, SEKEM turned a barren Egyptian desert into a hub of sustainable development. By integrating biodynamic farming with social and cultural initiatives, SEKEM has grown into a network of companies, NGOs, and educational institutions. The organization also owns and operates a medical center that caters to the local community. In partnership with the Egyptian Biodynamic Association (EBDA), SEKEM is working to support 40,000 farmers during their transition to organic and biodynamic farming practices by the end of 2025, while adopting its ‘ Economy of Love’ (EoL) certification standard, which champions biodiversity, eco-friendly production, and fair livelihoods for farmers.

SEKEM’s pioneering (EoL) model addresses pressing global issues like desertification and climate change by restoring soil health, optimizing water use, and empowering communities. EoL’s holistic approach underscores the role biodynamic agriculture plays in building climate-resilient ecosystems and improving farmers’ livelihoods.

SEKEM joins a prestigious group of laureates, including Brazil’s Sonia Guajajara for her advocacy for Indigenous rights, Romania’s Gabriel Paun for protecting Europe’s last old-growth forests, and China’s Lu Qi for reversing desertification.

With 3.2 bn people at risk from desertification and over 75% of the global population expected to face droughts by 2050, organizations like SEKEM demonstrate how sustainable agriculture can combat these challenges while fostering environmental and social resilience.

Egypt’s current account deficit doubles to USD 5.9 bn in 1Q FY 2024-2025

Egypt’s current account deficit more than doubled in 1Q FY 2024-2025, reaching USD 5.9 bn compared to USD 2.8 bn recorded during the same period last fiscal year thanks to a sharp increase in the trade deficit and a significant decline in Suez Canal revenues, according to central bank figures (pdf).

BoP back in the red: The overall balance of payments recorded a deficit of USD 991.2 mn during the quarter — the balance of payments recorded a surplus of USD 228.8 mn during 1Q FY 23-24.

BEHIND THE RISE-

#1- Suez Canal earnings took a hit: Revenues from the Suez Canal dropped by 61.2% y-o-y to USD 931.2 mn — net tonnage fell 68.4% y-o-y and the number of transiting ships fell 51.0% y-o-y — with ongoing Red Sea tensions prompting many shipping companies to reroute away from the canal.

#2- Oil imports on the rise: Oil imports saw a 85.2% y-o-y rise to record USD 5.4 bn on the back of higher oil and natural gas imports. Exports, meanwhile, fell 25.8% y-o-y to USD 1.2 bn due to lower crude exports. This pushed the oil trade deficit to USD 4.2 bn, up from USD 1.3 bn a year earlier.

#3- Non-oil trade deficit widened: Imports of non-oil goods rose by 32.9% y-o-y to USD 17.7 bn, driven by higher spending on key commodities like wheat, soybeans, and pharma products. This increase was slightly offset by a modest increase in non-oil exports, which were up USD 1.2 bn during the quarter to record USD 7.9 bn thanks to exports of fruits, vegetables, aluminum, and cables.

EASING THE PRESSURE-

#1- FDI inflows on the rise: Foreign direct investment recorded a net inflow of USD 2.7 bn, up from USD 2.3 bn during the same period last fiscal year. Non-oil sectors attracted the bulk of this figure, supported by “selling local entities to non-residents … greenfield investments and capital increases of existing companies … and real estate purchases by non-residents.”

#2- Portfolio outflows slowed: Outflows from portfolio investments shrank to USD 384.7 mn compared to USD 523.4 mn last year.

#3- Tourism continued its recovery: Revenues from the tourism sector rose 8.2% y-o-y to USD 4.8 bn — the number of tourist nights spent in Egypt saw a 8.2% y-o-y increase to 51.6 mn.

#4- Remittances provided relief: Remittances from Egyptians abroad jumped 84.4% y-o-y to USD 8.3 bn as Egyptians abroad have started sending more of their remittances through official channels after the float of the EGP put an end to the parallel market that had pushed remittance flows through unofficial channels.

Remember: Egypt’s current account deficit more than quadrupled to USD 20.8 bn in FY 2023-24, driven by a significant increase in trade deficit and a decline in Suez Canal revenues. The country recorded an overall balance of payments surplus of USD 9.7 bn during the fiscal year, supported by structural reforms introduced during the second half of the year that brought in net inflows of USD 29.9 bn.

Egyptian imports of Israeli gas hit a record 981 mn cfd in 2024

A record year for Egyptian imports of Israeli gas: Egypt imported a record 981 mn cfd of natural gas from Israel last year, up 18.2% y-o-y, according to a report from industry publication Mees. The increase was driven by a growing gas deficit thanks to a dip in local gas production that saw production fall to a seven-year low of 4.5 bn cfd in October.

Egypt’s imports of Israeli gas have been steadily increasing for years now, with Israeli gas imports rising to their current level from just 202 mn cfd in 2020. Israel’s NewMed Energy — which owns 45.3% of the Leviathan gas field — also recently floated the prospect of doubling Egypt-bound shipments to more than 2 bn cfd by 2030. On the other hand, the report says Egypt’s only alternative is LNG imports — whose spot prices currently sit at around USD 14 per mn BTU, significantly costlier than Israel’s USD 6.5 per mn BTU imports.

Capacity constraints to cap Israeli gas shipments in 2025: Israeli gas exports to Egypt may face a cap until late 2025 due to infrastructure limitations, according to the report. Even with Israel on track to boost its exporting capacity with a number of infrastructure and field expansion projects due for completion in the near future, “the volume that Egypt can import from Israel will then be capped at the capacity of the Arish-Port Said pipeline, which currently stands at 1.4 bn cfd.” While there are plans to add a second pipeline running parallel to the Arish-Port said pipeline to double its capacity, it won’t be operational until 2H 2027, the report said.

Cabinet greenlights EGP 30 bn industrial initiative, grants two multi-mn projects golden licenses

EGP 30 bn industrial initiative gets the thumbs up from the cabinet: The Madbouly cabinet approved the EGP 30 bn initiative to support companies in priority industrial sectors during its weekly meeting last week.

What do we know about it? The initiative aims to help private players finance the purchase of new machinery, equipment, and production lines and it targets the pharma, food, engineering, chemicals, ready-made garments, spinning and weaving, mining, and building materials sectors.

This isn’t the first we heard about this: The industry and finance ministries unveiled the first phase of the initiative late last month. The initiative provides beneficiaries with a subsidized interest rate of 15% for five years from the start date of the initiative, with a maximum financing limit of EGP 75 mn per client or a total of EGP 100 mn for related entities as well as additional incentives.

The eligibility criteria: To take part in the initiative, private players need to have completed construction, secured the necessary building permit, and have a tax invoice for the machinery, equipment, or production line purchased locally.

What’s next? The finance and industry ministries, alongside the central bank and other relevant parties, will work together to develop the initiative’s implementation mechanisms.

AND- French yeast producer Lesaffre Egypt will receive the golden license for its EUR 120 mn yeast production and packaging facility to be set up in Beheria. The project will have an annual production capacity of 22.6k tons of instant and active dry yeast — the first phase will come online in August 2026 and the second phase will follow in August 2028. Over 90% of the project’s output will be earmarked for exports and the local component ratio will exceed 50%.

PLUS- Finnish food packaging manufacturer Huhtamaki also secured the golden license for its EGP 1.5 bn factory — EUR 24 mn of which will come in the form of FDI, representing over 80% of the price tag — for the production and distribution of food packaging in Sadat City. The project will rely heavily on local materials, with its local component ratio expected to reach 70%, and export 70% of its production.

Jordanian e-reading platform Abjjad names Egyptian Sally Elakkad as new CEO

Amman-born Arabic e-reading platform Abjjad has tapped Egyptian author Sally Elakkad (LinkedIn) as CEO, succeeding the company’s founder Eman Hylooz (LinkedIn), who has been promoted to executive chairwoman, according to a statement (pdf). This marks the company’s first leadership changes since its foundation in 2012.

Elakkad moved up from her former position as president, holding 20 years of expertise in marketing and e-commerce. Together, the new leadership aims to strengthen Abjjad’s “ambitious growth and expansion strategy.”

Gaza, Syria, Ethiopia, and subsidies in focus as Badr Abdelatty and Sherif Farouk sat down with the nation’s hosts

Foreign Minister Badr Abdelatty and Supply Minister Sherif Farouk took to the airwaves yesterday, with the two ministers appearing on Ahmed Moussa’s Ala Masouleety and Lamees El Hadidi’s Kelma Akhira to talk Gaza, Syria, Ethiopia, subsidies and everything in between.

“Egypt is open to international or foreign forces in Gaza, provided there’s a political roadmap with a clear timeline leading to a Palestinian state, Abdelatty’s told Moussa in their conversation that spanned the Ethiopian Renaissance Dam, Gaza, Syria, and more (watch, runtime: 52:23). The foreign minister added that “deployment must occur simultaneously in the West Bank and Gaza.” He added that Egypt is working to host an international conference in Cairo to spearhead Gaza’s reconstruction efforts, “removing rubble and enabling the Palestinian Authority to resume management of the Strip.”

“Egypt maintains strategic partnerships with major global players without aligning against any side,” Abdelatty said. While allied with different nations, the country follows a “balanced foreign policy grounded in strategic equilibrium and guided solely by national interest,” Abdelatty added.

“Egypt has clean hands and no hidden agenda; it works solely for the common Arab interest and the interests of African peoples, aiming for security and development,” Abdelatty said. On the Renaissance Dam, Abdelatty described water as “the most existential issue for Egypt and Sudan,” calling for a binding legal agreement on its operation. “More than 13 years have been wasted without results due to a lack of political will on the other side,” he noted.

When asked about the possibility of Syria’s division, Abdelatty was resolute, telling Moussa “Egypt will not allow this catastrophic scenario to unfold,” warning that such a precedent could pave the way for the division of other Arab nations.

Over on Lamees El Hadidi’s Kelma Akhira, subsidies topped the agenda with Supply Minister Sherif Farouk sitting down for an interview (watch runtime: 1:04:47). “The shift to cash subsidies isn’t being pushed by any international body — it’s under serious review by the ministry, with input from all sides,” the minister told El Hadidi.

“A 2025 rollout for cash-based subsidies isn’t set in stone. If experts and societal dialogue conclude against it, it won’t happen,” Farouk said. “The goal isn’t budget savings but fixing flaws in the current system, despite challenges like high inflation,” Farouk explained, adding that the first phase could include 32–35 essential goods.

“The current budget allocates EGP 135 bn for commodity subsidies — 22% of total subsidy spending. That figure could rise by EGP 100 bn next year. We’re overhauling the system to include the deserving and exclude the ineligible, with flexible, evolving criteria,” he said.

Other key highlights from the supply minister’s remarks:

No plans to raise subsidized bread prices this year, despite rising costs to EGP 1.5 per loaf.
Sugar prices on ration cards will remain unchanged in 2025.
No shortages expected for sugar or other goods.
Strategic reserves cover approximately 6 months for wheat, 13+ months for sugar, and 6 months for oil.

Financing negotiations back on for Feerum’s long-awaited silo factory. PLUS: Kima + Al Sharq, General Motors, Chevron,

MANUFACTURING-

Financing talks underway for Feerum’s long-awaited silo factory: The Egyptian arm of Polish grain silo company Feerum is in talks with Banque Misr and Banque du Caire to help finance its planned silo factory in East Port Said, unnamed sources told Shorouk News. The project — which now carries a revised price tag of EGP 2.5 bn, up from a cost of EGP 1.6 bn — has a production target of 1.4 mn tons of storage capacity over three years after production starts in 2026.

What’s next: A meeting between the Finance Minister and the company is penciled in for 26 January to finalize the needed financial guarantees.

Remember: For years, the state has been working to boost its wheat storage capacity, building more silos and taking out loans to invest in silo development, all with the aim of ensuring none of our local harvest goes to waste due to lack of sufficient silo capacity and increasing wheat reserves. The Supply Ministry has a plan to increase the country’s silo capacity to 5.3 mn tons from its current 2.1 mn tons and cut down on the percentage of wheat that is wasted in the harvest and storage process.

MANUFACTURING-

Kima and Al Sharq to partner up on alloy production: State-owned Egyptian Chemical Industries (Kima) inked a seven-year agreement with Saudi capital-backed Al Sharq Real Investment, under which the latter will operate and maintain an electric arc furnace for silico-manganese alloys production, according to a statement. Al Sharq will have the rights to sell the alloys produced — in exchange it will pay Kima USD 75 per ton produced and 30% of the revenue from by-products generated during production. The partnership is expected to generate Kima some USD 1.8 bn annually.

AUTOMOTIVE-

GM launches locally assembled Chevrolet Optra 2025: General Motors Egypt has launched the production of Chevrolet Optra 2025 model at its factory in Sixth of October City, the company said in a statement. The company has invested over USD 20 mn in local production capabilities with the addition of new equipment and error-proofing technology “to cater to the new passenger car program to ensure further safety and quality,” the statement read.

ENERGY-

Chevron to drill second well in Nargis field: US energy giant Chevron plans to invest USD 150 mn to drill a second exploratory well in the Mediterranean’s Nargis gas field next month, an unnamed government official told Asharq Business. The company will get started on drilling the second well after completing and sealing the first well, pending the finalization of the development plan, the construction of the floating production platform, and pipeline infrastructure to transport the extracted gas to the onshore processing facility. Gas production is expected by late 2026.

TRADE-

The Investment Ministry is working to establish a logistics centre in Nigeria, in addition to other centres across the continent, Investment Minister Hassan El Khatib said yesterday at the Egypt-Nigeria Joint Business Forum. Also in the works is support for export assurance programs and the better facilitation of banking operations to help support trade between Egypt and other African nations, he added.

US core inflation undershoots forecasts, raises early rate cut speculations

US core CPI rises less than forecasts predicted: The US’ annual core consumer price index (CPI) — which excludes the food and energy baskets — rose by 0.2%, the slowest pace in six months, according to the US Bureau of Labor Statistics report (pdf). Forecasts had predicted a fifth consecutive 0.3% rise.

The Fed needs more proof to speed up cuts: This development will not merit a rate cut in the next Federal Reserve meeting later this month, but if next month turns up with another “soft CPI print” and a "weakening in payrolls” then a March rate cut is plausible, chief global strategist at Principal Asset Management Seema Shah tells Bloomberg.

Still, all options are on the table: The current pricing patterns and future predictions indicate a 50-50 chance of two rate cuts throughout 2025 by 25 bps, with markets expecting the next cut to take place in May or June, CNBC reports.

Growth levels of jobs and wages support a longer hold on cuts, as the US economy added 256k jobs in December, according to data from the Bureau of Labor Statistics. The unemployment rate declined to 4.1%, one-tenth of a point below expectations, CNBC reports.

Trump’s policies might pressure inflation: Some economists predict that Donald Trump’s tariffs will put extra pressure on inflation after his inauguration next week. Trump vowed to impose a 60% tariff on Chinese goods, followed by an additional 10%, as well as a 10% tariff on imports from other countries, denying any intentions to water down the rates.

EGX30	29,605	+0.7% (YTD: -0.5%)
USD (CBE)	Buy 50.31	Sell 50.44
USD (CIB)	Buy 50.35	Sell 50.45
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,256	+0.4% (YTD: +1.8%)
ADX	9499	-0.1% (YTD: +0.9%)
DFM	5212	-0.5% (YTD: +1.0%)
S&P 500	5997	+1.0% (YTD: +2.0%)
FTSE 100	8505	+1.4% (YTD: +4.1%)
Euro Stoxx 50	5148	+0.8% (YTD: +5.2%)
Brent crude	USD 80.79	-0.6%
Natural gas (Nymex)	USD 3.95	-7.3%
Gold	USD 2748.70	-0.2%
BTC	USD 103,889.80	-0.7% (YTD: +11.0%)

THE CLOSING BELL-

The EGX30 rose 0.7% at Thursday’s close on turnover of EGP 3.7 bn (2% below the 90-day average). International investors were the sole net buyers. The index is down 0.5% YTD.

In the green: Abou Kir Fertilizers (+3.8%), Beltone Holding (+3.4%), and Sidpec (+2.5%).

In the red: Eastern Company (-1.7%), Cleopatra Hospitals (-1.2%), and Faisal Islamic Bank -USD (-0.9%).

CALENDAR

JANUARY

20-24 January (Monday-Friday): World Economic Forum Annual Meeting

23 January- 5 February (Thursday-Wednesday): Cairo International Book Fair, Egypt International Exhibitions Center, Cairo

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Health Ministry finalizes partnership with Gustave Roussy to operate Dar El Salam Hospital.

Building permit applications in Egypt's new cities will go online

Accor Group to open Sofitel Cairo Downtown Nile, the world’s largest Sofitel.

Egyptian National Railways to launch tender for Tanta-Mansoura-Damietta railway line upgrades

Food products will require food safety and validity certificates from the National Food Safety Authority (NFSA)

Bavarian Delegation visit to Egypt

FEBRUARY

BP to bring the second well of its Raven natural gas project online, with additional production capacity expected.

Orascom Pyramids Entertainment to bring total investments in the Pyramids Plateau to EGP 1.5 bn.

Subscription period for Your Home in Egypt initiative opens.

2 February: Energy Day Conference, Cairo, Egypt.

17-19 February (Monday-Wednesday): EGYPES Technical Conference, Egypt International Exhibition Center, Cairo, Egypt.

18-19 February (Saturday-Sunday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

20 February (Thursday): Monetary Policy Committee's first meeting.

MARCH

Arla Foods’ deadline for Domty acquisition offer

Operation of phase one of the Amotope wind farm

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

7-9 April (Monday-Wednesday): Narrative PR Summit launches 9th edition, Red Sea

7-10 April (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

17 April (Thursday): Monetary Policy Committee’s second meeting.

28-30 April (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

MAY

22 May (Thursday): Monetary Policy Committee’s third meeting.

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

JUNE

June 2025: MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting.

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

DECEMBER

25 December 2025 (Thursday): Monetary Policy Committee’s eighth meeting.

December 2025: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

1H 2025: EGX launches a sharia-compliant sustainability index.

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

Mid-2025: The Administrative Capital for Urban Developments to roll out the second phase of offering industrial plots to investors

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

May 2026: End of extension for developers on 15% interest rates for land installment payments

2027

20 January-7 February: Egypt to host the African Games

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place

September 2028: First unit of the Dabaa nuclear power plant begins operations

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