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Wednesday, 5 Feb 2025

What We're Tracking Today
Economy
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Egypt’s non-oil private sector kicks off 2025 on a positive note

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Today at a glance

1

Economy

Egypt’s non-oil private sector kicks off 2025 on a positive note.
2

M&A WATCH

EBRD exits Ibnsina Pharma.
3

What We're Tracking Today

Trump wants the US to “own” Gaza.
4

Energy

Yet another floating storage regasification unit coming our way?
5

Manufacturing

El Wazir talks expansion with Turkish investors.
6

Diplomacy

FM Abdelatty meets with Erdogan during Turkey trip.
7

PLANET FINANCE

Uncertainty of Trump presidency pushes US Fed to rule out pre-emptive rate actions.
8

HARDHAT

The National Artificial Intelligence Strategy 2.0 is here.

Wednesday, 5 Feb 2025

What We're Tracking Today
Economy
M&a Watch
Energy
Manufacturing
Diplomacy
Startup Watch
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Hardhat
Calendar
1

What We're Tracking Today

IFC to complete its airport privatization plan within months

Good morning, ladies and gentlemen. We have another busy issue for you this morning led by a January’s PMI, which showed the country’s non-oil private sector activity expanding after months in contraction. We also have news that our friends at EBRD completing their exit of Ibnsina Pharma — offloading their remaining 8.8% stake in the pharma distributor — and word the Mabdouly government is leasing yet another regasification unit.

AND- Donald Trump wants the United States to take possession of Gaza and wants to see everyone living there relocated. Trump said the US would turn Gaza into the “Riviera of the Middle East” and claimed “countries of interest with humanitarian heart” would open their doors for 2 mn Gazans.

We have the rundown on all of this and more, below.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 19°C and a low of 12°C, according to our favorite weather app. The Egyptian Meteorological Authority is warning of heavy rains in coastal areas throughout the day and a light chance of moderate rainfall in Cairo.

It’s just as cold in Alexandria, with a high of 19°C and a low of 12°C.

** 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-

#1- The House will “within days” introduce a draft law scrapping the capital gains tax on EGX transactions and reinstating a stamp tax, as part of measures aimed at boosting investment, deputy chairman of the Budget Committee Yasser Omar said.

You heard it here first: Yesterday, a government source told EnterpriseAM that the long-awaited capital gains tax on EGX transactions may never come, with the government holding intensive discussions to resolve the issue — and even look for alternatives. In its place, officials are now considering reinstating a 0.15% stamp tax on all EGX transactions as a simpler alternative to the capital gains tax, which has been repeatedly delayed.

A return to a stamp tax has been in the cards for a while now, with a senior government source telling EnterpriseAM last September that officials were studying alternatives to taxing EGX capital gains, including imposing a stamp tax.

We have a timeline: Our source had told us that the government plans to finalize the collection mechanism and submit draft legislation to the House soon to avoid disrupting the upcoming corporate tax filing season, which ends on 30 April.

#2- The International Finance Corporation’s full airport privatization plan should be out in the next six months, Al Mal reports, citing an unnamed official from the Civil Aviation Ministry. The plan will include the technical, financial, and legal nitty gritty to get the airport privatization push off the ground.

Remember: The Madbouly government revealed plans in November to invite private sector players — including foreign companies — to take over the management of airports in the country. The list of airports earmarked for the private management plan initially started with only five, but now includes all of Egypt’s airports, after the government agreed with the IFC to spearhead the airports’ privatization plan.

#3- The government’s latest push to convert cars and buses to run on natural gas and electricity will be announced “soon,” Finance Minister Ahmed Kouchouk said yesterday in a statement. Kouchouk first teased the new initiative in a sit-down interview with Lamees El Hadidi last month, telling the host that his ministry would cover 70% of the roughly EGP 17-17.5k conversion cost under the soon-to-be-revealed plan.

#4- An Edventures’ company to list on Tadawul? Nahdet Misr’s edtech-focused VC Edventures is planning to have one of its companies go public on Tadawul next year, CEO of Nahdet Misr and founder of Edventures Dalia Ibrahim told Asharq Business.

#5- A unified financing initiative for startups? The Madbouly government is looking to introduce the unified financing initiative for startups, coordinating efforts between public and private entities to support over 5k startups, according to a cabinet statement.

HAPPENING TODAY-

#1- Investors and VCs are gathering for the second and last day of the Egypt VC Summit, which is taking place at the Sofitel Cairo Downtown Nile Hotel, according to a statement (pdf) from the organizers. Hosted by the Egyptian Private Equity and Venture Capital Association and German development agency GIZ, the event brings together global and regional investors to attend talks, network, and partake in roundtable discussions. You can check out the agenda on the event’s website.

#2- Today is the last chance for bookworms to explore the shelves of the Cairo International Book Fair before it closes its doors after a two-week run at the Egypt International Exhibition and Convention Center in New Cairo. This year’s fair is hosting 1.2k publishers showcasing their latest publications and thousands of exhibitors for the event, with mns expected in attendance. Last year’s visitor count reached near the 5 mn mark.

CORRECTION- In Monday’s issue of EnterpriseAM Egypt, we incorrectly reported Ibnsina Pharma’s market share — the local pharma giant holds a 30.8% share of the country’s pharma market. The story has since been amended on our website.

THE BIG STORY ABROAD-

It’s another morning with the foreign pages fixated on the latest from Trump: US President Donald Trump is making headlines once again for pushing for “cleaning out” Gaza.

A US takeover of Gaza? During a joint presser with Israeli Prime Minister Benjamin Netanyahu, Trump proposed that the US take over, develop and own the Gaza Strip to turn it into “the Riviera of the Middle East.” He once again called for the forced displacement of all 2.2 mn Palestinians who call Gaza home. “Countries of interest with humanitarian hearts” could fund permanent resettlement of Gazans in Egypt, Jordan, and possibly other locations.

Trump thinks he can persuade us to take in the Gazans. “They say they’re not going to accept,” he said of us, Jordan, and other Arab countries, standing next to Netanyahu. “I say they will.”

Hamas was quick to reject the proposals, saying that “our people in Gaza will not allow for these plans to come to pass.” Egypt and Jordan had already rejected Trump’s earlier suggestion they take in Gazans, with Jordan’s King Abdullah heading to Washington next week to meet with Trump. Saudi Arabia also reiterated its public stance linking normalization with Israel to the establishment of a Palestinian state, and rejecting settlement, annexation or displacement of Palestinians as “non-negotiable” with new or old US administrations. (Reuters | Bloomberg | CNN | FT | New York Times)

** We have more on Trump’s comments in the news well, below.

ALSO- Trump signed a presidential memorandum ahead of the conference reinstating a “maximum pressure” campaign on Iran to curb its nuclear ambitions. The memo also includes a campaign aimed at “driving Iran’s oil exports to zero”, threatening USD 53 bn of Iranian oil exports, per 2023 estimates. As usual, Trump signalled he was open to negotiating an agreement with Iran that saves everyone the trouble. (Reuters | New York Times | CNBC)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We dissect the second edition of the National Artificial Intelligence Strategy.

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Somabay Welcomes World Aquatics Open Water World Cup for the Third Year

Somabay proudly hosts the World Aquatics Open Water World Cup for the third consecutive year, reinforcing its status as a top watersports destination. The training camp will run from 18-22 February at Somabay’s state-of-the-art OneFlow Aquatics Centre, preparing athletes from 21 countries for the competition. From 21-22 February, they will compete in three races, further cementing Somabay’s appeal for international swimming events.

2

Economy

Egypt’s non-oil private sector kicks off 2025 on a positive note

Egypt’s non-oil private activity expanded at its highest rate in over four years in January, buoyed by a solid increase in output and sales volumes, according to S&P Global’s latest Purchasing Managers’ Index report (pdf). The headline reading rose to 50.7 from 48.1 in December , marking the second time the country's non-oil activity has hit the expansion territory since November 2020.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

An uptick in new orders and output levels drove the overall improvement, with the output sub-index rising to 51.1 from 47.1 in December, and the new orders sub-index rising to 51.3 from 46.4, according to Reuters. The rise was driven by “an improvement in economic conditions and falling inflationary pressures,” which gave participants in the survey more confidence to place new orders, particularly in the manufacturing, construction, and wholesale and retail sectors. Many firms also reported having to expand their output during the month to meet increased customer demand.

"Growth at the start of 2025 was welcome news for Egypt's non-oil private sector, which has struggled in recent times amid rampant inflation and the wider effects of regional instability,” S&P Global senior Economist David Owen said. “The ceasefire [agreement] between Israel and Hamas likely added confidence to markets in January,” he added.

Input prices rose at their softest pace since May, which “helped to soften cost pressures and fuel a pick-up in sales for only the second time in over three years,” Owen said. While some respondents cited increased cost pressures driven by a stronger USD, other non-oil firms — particularly in the construction sector — saw reduced material prices during the month. This also helped drive the purchase of inputs, which contributed to a slight increase in firms’ input inventories.

THE MACRO PICTURE-

The reading came in line with expectations for the macro economy in 2025, Economist Mona Bedeir told EnterpriseAM, noting that inflation, GDP growth, and real sector performance were projected to see a gradual recovery this year. Bedier cited stabilizing inflation rates, the benefits of a stable FX market, and improved local supply chains in the wake of an easing of regional and global tensions. Overall growth rates are also set to benefit from an uptick in momentum in the manufacturing and construction sectors.

We might not be out of the woods yet, think some analysts, including HC Securities’ Heba Mounir, who told EnterpriseAM that “While the first PMI reading for 2025 showed a strong bounce back, compared to December’s performance and the past two years except August, a one-off expansion should not be seen as a trend until it holds on for the coming months and prove that the non-oil business activity has fully recovered after two tough years.” Bedier explained that “we should wait and see if the non-oil private sector manages to stabilize in the growth territory over the next few months to make sure that the PMI readings are consistent with the macro outlook for 2025.”

Cautious optimism is required, because while the Gaza ceasefire and easing inflation readings supported January's PMI figures, lingering uncertainty over regional tension and the anticipated subsidy cuts could pose potential risks to the economy going forward, Mounir and Bedeir told us.

EGP stability appears set to brighten the outlook, with Mounir ruling out a sharp devaluation in the local currency similar to what we saw over the past two years. “That said, a 5% fluctuation in the exchange rate as the prime minister hinted last year, will have a limited impact on private firms and consumers, which in turn would help the non-oil economy sustain its rebound.”

Remember: The EGP crossed the 50 mark against the greenback in December and slipped even further in the first weeks of the year, but the local currency has since been on the mend having strengthened by 1.2% against the USD in January. “The issue is more about a strengthening USD than it is a weakening EGP,” Al Ahly Pharos Senior Economist Esraa Ahmed told EnterpriseAM last week in reference to a runaway greenback following the election of Donald Trump in November.

The survey suggests that inflation will likely continue its downward path in the coming months. Output prices at non-oil firms inched up last month at the softest pace in four and a half years, indicating that “firms are facing a lack of pressure to increase their fees in the current business environment,” Owen noted. Cooling input and output price inflation supports Capital Economics’ view that “inflation will slow sharply at the start of this year and back to within the Central Bank of Egypt’s inflation range target, paving the way for the monetary loosening cycle to begin in the coming months,” MENA economist James Swanston wrote in a note.

Remember: Egypt’s annual headline urban inflation dropped to 24.1% in December, down from 25.5% in November, marking the nation’s lowest inflation reading since December 2022. On a monthly basis, headline inflation also calmed, falling 0.3 percentage points to 0.2%. Some analysts argue that the worst effects of subsidy cuts and price hikes that included cigarettes and other items may have passed. A favorable base effect is also expected to come into play in reducing inflation figures.

Total employment in Egypt stabilized during the month, following two months of job cuts across the non-oil sector. However, overall hiring remained subdued, as increased hiring across some businesses was offset by reductions in others.

Despite the recovery signs, overall business sentiment in Egypt is still uneasy. Business expectations in Egypt slipped to a historically low level in January, “showing that firms are still uncertain about economic stability over the longer term,” Owen said.

The international press also took note of the report: Reuters | Bloomberg

ELSEWHERE IN THE REGION-

  • Saudi Arabia’s PMI rose to 60.5 in January marking the Kingdom’s best performance since September 2014.
  • Kuwait’s PMI dipped to 53.4 in January, down from 54.1 in December, but reading well above the 50.0 mark that marks growth.
  • Qatar’s PMI dropped to 50.2 in January (pdf), from 52.9 in December, marking the first drop in four months.
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3

M&A WATCH

EBRD exits Ibnsina Pharma

EBRD has fully exited its investment in Ibnsina Pharma: The European Bank for Reconstruction and Development (EBRD) has sold the last 8.8% it held of EGX-listed pharma distributor Ibnsina Pharma, the lender said yesterday.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The price tag: EBRD didn’t disclose the value of the sale, but EGX yesterday said an EGP 555.5 mn transaction was executed on Ibnsina Pharma’s shares. Some 88.9 mn shares were sold.

A successful investment: Since the EBRD invested in the company, it has “grown strongly, becoming the top pharma distributor in the Egyptian market and successfully expanding into a number of non-pharma operations.”

By the numbers: Ibnsina Pharma currently holds a 30.8% share of the national pharma distribution market. It also led Egypt’s pharma and hospitals sector last year and ranked first in public and private hospitals, the company said in a release (pdf) earlier this week.

What they said: “Ibnsina Pharma has been an incredibly successful investment for the Bank, despite the very challenging Egyptian macro environment,” said our friend Hassan Massoud, the bank’s associate director for private equity in the Southern Mediterranean. “The scale and timing of this transaction is testament to the depth of the EGX as a credible exit venue for successful private equity investments,” he continued.

Remember: The EBRD acquired a 20% stake in the pharma player back in 2015 to help the company fund the development of warehouses, distribution centres and overall supply chain.

EBRD is still long Egypt: The bank’s other investments here include a who’s-who of corporate Egypt, including Infinity, Hassan Allam Renewable Energy, GlobalCorp, and Tamweely. It has previously been an investor in a leading national hospitals group and has invested some EUR 13.8 bn here since 2012.

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The luxury Autograph Collection Hotel will take over Mogamma: Cairo House Egypt inked an agreement with Tourism Investment and Marriott International to turn the Mogamma building into an Autograph Collection Hotel, according to a statement (pdf).

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The details: The 500-key hotel will house guestrooms and services apartments and offer a variety of dining and entertainment options, a rooftop swimming pool, an events space, a ballroom, and a spa.

Backing the project: The development will be led by an international consortium including Global Ventures Group, US-based real estate investment, development and management firm Oxford Capital Group, Emirati investment firm Al Otaiba Investments, and Zoser Capital Partners.

A long time coming: Global Ventures, Oxford Capital, and Al Otaiba Investment secured theEGP 3.5 bn contract to redevelop Tahrir Square’s Mogamma back in December 2021. Under the contract, the consortium will manage the development of the complex and operate it once complete.

When can we expect the hotel to open its doors? The hotel is expected to be completed by December 2025, former Chair of The Sovereign Fund of Egypt — the entity in charge of the plan to revamp downtown Cairo — Hala El Said said last June.

A vote of confidence in Egypt: “The investment into the Mogamma Al Tahrir complex signifies a catalyst to future investment into downtown Cairo and showcases Egypt’s strong initiative to boost their tourism sector,” the release said.

Part of a much bigger plan: The government has been working on several landmark projects in central Cairo to develop old buildings and revamp the cultural landscape in different areas. We recently did a deep dive into the government’s plans for Downtown Cairo post-revamp — check it out here.

What they said: “Autograph Collection features curated properties that celebrate individuality and we look forward to working with the consortium and the Sovereign Fund of Egypt to bring the brand’s distinct perspective on design and hospitality to the city,” Marriott VP of Development in North Africa Shady Hassan said.

Unfamiliar with Autograph Collection? The up-scale luxury hotel chain has over 300 hotels across the world — including in South Africa, Kenya, the UAE, Qatar, and a long list of European nations. The brand is part of the Marriott portfolio.

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4

Energy

Yet another floating storage regasification unit coming our way?

A Turkish floating storage regasification unit will dock in Egypt next summer: The Madbouly government will lease a Turkish floating storage regasification unit starting June and for the duration of the summer, Asharq Business reports, citing an unnamed government official.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

How much will it cost? The Madbouly government will cough up some USD 45 mn to lease the unit from June and until November.

The details: The unit will liquify some 500 mn cubic feet of gas a day for electricity generation in efforts to meet heightened domestic demand during the summer months.

Preparing for the worst case scenario: A second regasification unit will dock in Egypt starting 2H 2025 under an agreement to lease a unit between US-based New Fortress Energy and Egyptian Natural Gas Holding Company that was inked late last year. Unconfirmed reports identify the vessel as the Energos Eskimo, which is currently docked in Aqaba Port and shared between Egypt and Jordan under a prior agreement.

And another one: Egypt reportedly chartered a third floating storage regasification unit to process LNG imports to dock at Ain Sokhna by June 2025.

We have a lot of LNG shipments coming our way: Egypt has reportedly signed agreements to purchase a total of 60 LNG shipments in 2025 for around USD 3 bn. The agreement entails supplying around five shipments per month, each carrying between 160-165k cubic meters of LNG — equivalent to approximately 500 mn cubic feet of gas per day for local consumption over a one-week period.

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5

Manufacturing

El Wazir talks expansion with Turkish investors

A busy day for manufacturing news: The last 24 hours saw an influx of announcements and reports in the manufacturing sphere, between high-level meetings, fresh projects, and expansions to already-existing projects.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

#1- Hearing out Turkish players: Industry Minister Kamel El Wazir met with representatives from nine Turkish companies operating in the local market in the textile, ready-made garments, packaging, and home appliances sectors to discuss their potential expansion plans and challenges, according to a statement from the Industry Ministry.

To sweeten the pot: Companies looking to set up their own solar plants to power their factories can do so without the need for any approvals from the government, El Wazir said.

#2- Turkey’s Kipas Textiles was said by the domestic press to be planning an EGP 1 bn investment to set up its second fabric factory here, expected to go live before the end of the year. A company spokeswoman later told EnterpriseAM that "that there is no new investment set to be launched by the end of the year."

#3- A local-foreign consortium mulls establishing EGP 200 mn leather industrial complex: A consortium of Egyptian, Turkish, and Chinese investors led by homegrown leather manufacturer Fabrica is looking into setting up a EGP 200 mn industrial complex for leather products, Fabrica Chairman Mohamed Mahran told Al Borsa. The three partners will hold equal stakes of 33.3% each in the complex, which will focus on export. Construction, facilities preparation, and production lines installation are scheduled to begin next year.

Where things stand: The consortium is currently in talks with the government to secure a land plot in one of the country’s economic zones as it looks to capitalize on tax and customs incentives.

#4- Cairo Foods’ Sadat City factory to undergo USD 5 mn expansion: Snackmaker Cairo Foods for Food Industries plans to invest USD 5 mn adding four production lines to its Sadat City factory, VP Ahmed Rabie told Al Mal. The expansion will allow the company to increase its production capacity of chips to 1.5k tons from 550 tons at the moment.

Also in the pipeline: The company, which exports 80% of its output, is looking to step into new markets over the coming period — including Morocco, Tunisia, Italy, Canada, and Switzerland.

Editor's note: This story was edited on 12 February 2025 to reflect comment from a Kipas Textiles spokesperson.

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6

Diplomacy

FM Abdelatty talks investment with Erdogan during Turkey trip

Abdelatty’s packed day in Ankara: Foreign Minister Badr Abdelatty was in Turkey yesterday in a trip that saw him meet up with Turkish President Recep Tayyip Erdogan, his Turkish counterpart, and the head of the Turkish Union of Chambers and Commodity Exchanges (TOBB).

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

#1- A meeting with Erdogan: Abdelatty’s conversation with the Turkish president touched on the untapped investment potential in both Egypt and Turkey, the need to hold a joint business forum, and boost Turkish investments in Egypt. The two sides also discussed regional issues — namely Gaza and Syria.

And a message from El Sisi: Abdelatty delivered a letter from President Abdel Fattah El Sisi to Erdogan, which highlighted the mutual commitment to strengthening cooperation and advancing political, economic, and investment ties.

DATA POINT- Trade between the two countries sat at USD 8.8 bn last year, putting them well on track for their goal of boosting trade to USD 15 bn within years.

#2- Efforts to drum up more Turkish investments: Abdelatty’s meeting with the head of TOBB saw him highlight potential investments in Egypt, particularly in the tourism sector.

#3- All things regional: Abdelatty and his Turkish counterpart Hakan Fidan released a 12-pointjoint statement following their meeting detailing their conversation — welcoming the ceasefire agreement in Gaza and firmly opposing the displacement of Palestinians, reiterating the importance of respecting Syria’s sovereignty, supporting the Somali government in its efforts to ensure the country’s stability. They also touched on the situations in Sudan and Libya.

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7

Startup watch

Egyptian fintech player Khazna raises USD 16 mn in latest round

Fintech startup Khazna closed a USD 16 mn in a pre-Series B round, it announced in a press release yesterday. The round saw participation from SANAD Fund for MSME, Seed Fund, Aljazira Capital, Khwarizmi Ventures, Nclude, ICU Ventures, Quona Capital, Speedinvest, and DisrupTech Ventures.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Where’s the money going? The company will use the fresh funds to continue its growth journey — it will apply for a digital banking license and further its footprint in the Saudi market. The startup expanded into Saudi Arabia last year in partnership with Khwarizmi Ventures.

More expansion ahead? “Khazna’s entry into Saudi Arabia marks the beginning of a new chapter, and we are committed to delivering an unparalleled digital user experience across the region,” CEO Omar Saleh said.

What they said: “Closing this funding round is a pivotal achievement for Khazna’s team. This not only propels our core business but also empowers us to accelerate our mission of advancing financial inclusion across the MENA region,” Saleh said.

Want more? We spoke to CTO and co-founder Ahmed Wagueeh back in 2022 for our Founder of the Week column. Check out the interview here.

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8

LAST NIGHT’S TALK SHOWS

Trump wants the US to “own” Gaza

Trump and Netanyahu’s meeting dominated the talk shows last night: The nation’s talking heads had a lot to say about US President Donald Trump's meeting with Israeli Prime Minister Benjamin Netanyahu in Washington last night. The two leaders discussed the future of Gaza and the exchange of hostages. Following their meeting, the two held a joint presser (watch, runtime: 40:31) which saw Trump once again call for Egypt and Jordan to take in displaced Palestinians currently residing in Gaza.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Trump’s plan for Gaza: Trump voiced his new plans for Gaza — he intends for the US to take over Gaza and “own it.” His plans entail displacing Palestinians “to other countries of interest with humanitarian hearts, and there are many of them, that want to do this,” he said, singling out Egypt and Jordan.

El Hadidi questioned Trump's shift in tone: “Trump preempted negotiations for the second phase of the ceasefire agreement, stating that he was unsure of its viability,” Kelma Akhira’s Lamees El Hadidi said (watch, runtime: 4:44). She also noted Trump's shift in rhetoric, which went from discussing the displacement of Palestinians to Egypt and Jordan to expanding Israel's territory. “This is the time for a unified Arab stance,” she said, warning that Trump would try to divide Arab countries using incentives and pressure.

Could we see El Sisi in the White House soon? “There are unconfirmed reports that President Abdel Fattah El Sisi will visit the US capital soon,” El Hadidi said (watch, runtime: 6:02).

The new also drew attention from Yahduth Fi Masr’s Sherif Amer (watch, runtime: 4:19) and Al Hayah Al Youm’s Mohamed Sherdy (watch, runtime: 11:17).

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9

Also on our Radar

Logic Holding snaps majority stake in Nexel

M&A-

Logic Holding nabs majority stake in Dubai’s Nexel: Homegrown management consulting group Logic Holding acquired a majority stake in Dubai-headquartered consulting firm Nexel Partners for an undisclosed sum, according to statement (pdf). While the exact size of Logic’s ownership in Nexel was not disclosed, the acquisition plays right into the company’s growth plans across key markets in the region. Nexel also has offices in Cairo and Riyadh.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Eyeing Saudi + GCC growth: “Logic will prioritize expanding its Saudi Arabian footprint, capitalizing on the Kingdom’s rapid digitalization, before scaling across the Gulf. This targeted approach ensures the firm meets escalating demand while delivering integrated, future-ready solutions,” the release read.

BANKING-

Changes to the CBE’s mortgage finance initiative: The Central Bank of Egypt has adjusted its mortgage finance initiative for low and middle income groups, its changing income brackets, interest rates, and minimum downpayments, according to a circular from the CBE sent to commercial banks seen by EnterpriseAM.

The details: The low income category, with a monthly net income not exceeding EGP 10-12k for individuals and EGP 13-15k for households, will be able to get their hands on subsidized mortgage financing at a declining 7.5-8% interest rate. The middle income category, with a monthly income not exceeding EGP 20k for individuals and EGP 25k for households, can secure financing at a declining 12% interest rate. The minimum down payment for accessing the financing has been set at 20% for both groups.

LOGISTICS-

When can we expect the Dekheila dry bulk terminal to go online? The local consortium setting up the 300k square meter dry bulk terminal in Dekheila Port is expected to deliver it in 4Q 2025, Al Mal reports citing comments from the director of consortium member Latt Trading Abdelrahman Laheta.

As things stand: The consortium is currently setting up the terminal's EGP 3 bn superstructure.

Remember: A consortium of four local private and state-owned firms — Mediterraneo Egypt, Latt Trading and Shipping, an Elsewedy company, and the Transport Ministry’s Holding Company for Maritime and Land Transport — last September inked an agreement to invest USD 450 mn to build, manage, and operate the terminal.

REAL ESTATE-

M squared launches EGP 6.5 bn project in West Cairo: Intro Holding's real estate arm M squared launched a EGP 6.5 bn residential project in West Cairo — dubbed 31West, according to a press release (pdf). The developer plans to start delivering units in the 31-feddan project in 6th of October within three years. The real estate developer plans to launch two new residential projects this year — it owns plots in New Cairo and the North Coast, company representatives told EnterpriseAM.

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10

PLANET FINANCE

Uncertainty of Trump presidency pushes US Fed to rule out pre-emptive rate actions

To cut, or not to cut is becoming an increasingly difficult question to answer in Trump’s America. Although Trump has only been in the Oval Office for a meager 16 days, his plethora of executive orders, pledges of incoming tariffs, and threats to close economic allies have disrupted the forecasts of economists and policymakers alike. The US Federal Reserve is no different, with San Francisco Fed Head Mary Daly telling the New York Times that any pre-emptive interest rate moves are off the table until the “scope, magnitude and timing” of the new presidency’s actions and their effect on the economy are clearer.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The Fed is focused on seeing the wood from the trees, trying to gauge the combined effect of the new administration’s policies, instead of reacting to each and every move — or a late-night tweet — from the presidency. “If a policy change is going to spur growth, which ultimately pushes down inflation, at the same time that there’s something that picks it up a little bit, then you don’t know what the net effect is going to be until you have more details about the policy,” she explained.

“The easiest way for a policy mistake is to speculate,” she told the American paper of record. The paper only had to look back as far as the last couple of days to justify the Fed’s new approach, with a tariff showdown with Canada and Mexico, along with a looming tariff war with China, and even the EU presenting an impossible-to-predict few months ahead for the country.

For now, the Fed is sticking to its outlook from December, which projected interest rate cuts of half a percentage point in 2025, bringing the target range to 3.75-4%. But Daly emphasized that this could change, depending on how the US economy evolves. “I think we have to have a very open mind about whether fewer or more will be needed,” she said, indicating how inflation and policy shifts could complicate the central bank’s plans and projections.

The Fed has a different approach to Trump this time round, after being quick off the block to preemptively lower rates in three consecutive meetings in 2019 during Trump’s first foray into trade wars. However, the US is in a different place right now, with inflation above the Fed’s 2% target, making businesses and consumers more sensitive to price pressures.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, the Hang Seng is in the red, down 1.6%, and so is the Shanghai, down 0.6%, while the Kospi is up 1.0% and the Nikkei is relatively unchanged.

EGX30

29,668

-0.3% (YTD: -0.2%)

USD (CBE)

Buy 50.24

Sell 50.37

USD (CIB)

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Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,434

+0.5% (YTD: +3.3%)

ADX

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FTSE 100

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Euro Stoxx 50

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USD 2,874

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USD 96,280

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THE CLOSING BELL-

The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 3.2 bn (16.5% under the 90-day average). Local investors were the sole net buyers. The index is down 0.2% YTD.

In the green: Orascom Developments (+1.9%), Oriental Weavers (+1.6%), and Alexandria Containers and Goods (+1.5%).

In the red: Egypt Aluminum (-2.5%), Eastern Company (-1.8%), and GB Corp (-1.6%).

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Our weekly deep-dive into infrastructure in Egypt.

Published every Wednesday in EnterpriseAM.

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11

HARDHAT

The second edition of the National Artificial Intelligence Strategy lands in Egypt

What does the road ahead for Egypt’s AI sector look like? The National Council for Artificial Intelligence (NCAI) released the second edition of the National Artificial Intelligence Strategy (pdf) last month, delineating how it aims to develop the AI sector between 2025 and 2030. The roadmap aims to leverage AI to drive economic growth and social development in a bid to position the country as a leading AI hub in the Middle East and Africa.

Remember: President Abdel Fattah El Sisi launched the first edition of the strategy in 2021, following the 2019 formation of the cabinet’s NCAI, which is tasked with overseeing the strategy’s implementation. The earlier blueprint rested on four pillars — AI for government (AI4G), AI for development and prosperity (AI4D), AI for humans (AI4H), and AI for international relations (AI4X).

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

A bird’s eye view: The strategy is guided by the overarching vision of building a “Digital Egypt” — which is also the running theme of a collection of initiatives run by the Communications and Information Technology Ministry. The strategy seeks to create an inclusive AI ecosystem for all Egyptians.

The revamped strategy is centered on six pillars — governance, technology, data, infrastructure, ecosystem, and talent. Here’s the rundown:

#1- The governance pillar prioritizes ethical and responsible AI use. It comprises two key initiatives. The first is setting up a comprehensive regulatory structure, including an ethical framework and a regulatory body. The second is participating in global and regional AI governance discussions, with Egypt aiming to play a prominent role in shaping the sector’s global governance.

#2- The cornerstone of the tech pillar aims to develop a national Arabic language AI model. This model aims to support language translation, sentiment analysis, and content generation. It also seeks to fuel the operations of several well-established sectors — including manufacturing, agriculture, and logistics — as well as nascent AI industries like autonomous vehicles, robotics, and smart technologies. The second tenet of the technology pillar involves expanding AI-focused R&D activities through funding, grants, and campaigns, while the third aims to introduce AI patent granting — a system that the government is currently working on.

#3- Enhancing data accessibility, quality, and security to support AI development. The third pillar involves setting up clear guidelines for data protection, privacy, and consent. It also entails creating high-quality Arabic datasets to improve AI and machine learning (ML) applications. There's also a push for an open data and data exchange platform to encourage data sharing and innovation. To keep things safe, a personal data protection authority is being set up, along with stricter security measures like encryption and better access controls.

#4- Building scalable AI infrastructure: Key initiatives of the infrastructure pillar include establishing advanced data centers to enhance data security and processing power, expanding cloud computing resources and supercomputers, and rolling out nationwide 5G and fiber-optic networks for high-speed connectivity. Sustainability is also a priority, with a focus on green computing, energy-efficient data centers, and solar-powered infrastructure to reduce environmental impact.

#5- Cultivating a vibrant AI ecosystem: The fifth pillar aims in part to create a dynamic investment environment by offering incentives to attract venture capital, supporting AI startups, and encouraging the growth of AI unicorns. A major focus is on industry-academia partnerships, ensuring researchers, businesses, and policymakers collaborate on cutting-edge AI projects. Egypt also aims to become a global AI hub, hosting major conferences and funding AI research. Additionally, public awareness initiatives will promote AI literacy.

#6- Developing local AI talent: The sixth strategy includes nurturing and attracting senior AI experts through competitive incentives, as well as forming international academic alliances, including exchange programs and joint research. The government will also push for cross-disciplinary AI courses, rolling out joint major programs that integrate AI with fields like business, healthcare, and agriculture. Additionally, a certification system will be set up to ensure AI professionals meet global standards.

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CALENDAR

FEBRUARY

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

29 January - 8 February (Wednesday-Saturday): Business Ya Shabab exhibition, Cairo Stadium

6 February (Thursday): Trade mission to Tanzania, organized by Chemicals & Fertilizers Export Council and the Export Council Building Materials, with 23 Egyptian companies participating.

6-9 February (Thursday-Sunday): Egypt International Boat Show, Nasr City, Ard El Maared.

8 February (Saturday): TechShift Summit 2025, The Greek Campus Downtown, Cairo

10 February (Monday): The Economic Forum for Industry and Investment.

13-17 February (Thursday-Monday): The 10th Annual Conference of the Businesswomen of Egypt 21 Association, the Arab League HQ, Cairo.

17 February: (Monday): Cypriot President Nikos Christodoulides will visit Egypt to sign agreements to transport Cypriot gas to Egypt to be liquefied and exported.

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.

21-23 February ( Friday-Sunday): The First Arab Fraud Combating Summit.

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.

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

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

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: 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: 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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