Valu could hit the EGX as soon as June

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What We're Tracking Today

Madinet Masr is working towards expanding into the GCC

Good morning, all. We wrap up this unexpectedly eventful Ramadan workweek with another busy issue packed full of exciting news — our friends at EFG Holding unveiled their plan for taking Valu public (in a unique transaction structure that foregoes the formal initial public offering) and Madbouly gave us a rare update on the Banque du Caire privatization plan. Both announcements have given us plenty to look forward to in the months to come.

So, when do we eat? Maghrib prayers are at 6:06pm in the capital, and you’ll have until 4:31am tomorrow to hydrate and caffeinate ahead of fajr.

PSA-

The deadline for submitting tax returns has been extended, with individuals now having until the first working day after the Eid Al Fitr holiday to submit their filings for 2024, Egyptian Tax Authority head Rasha Abdel Aal said in a statement. The deadline was initially set for 31 March. Companies will have until 30 April. Filings must be submitted electronically through authority platforms.

The exact date of the Eid Al Fitr holiday is yet to be confirmed, but it is expected to start between 30-31 March.

SPEAKING OF EID AL FITR- The National Railways Authority is adding extra train trips for key routes from 25 March to 11 April to accommodate increased travel during the Eid holiday, according to a statement.

A FRIENDLY REMINDER- Today is your last chance to pick up a gift — Mother’s Day is tomorrow.

WEATHER- It’s a windy day in Cairo, with a high of 21°C and a low of 13°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 18°C and a low of 14°C.

And over the weekend, expect to see a high of 20°C and a low of 11°C in the capital.

** 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-

Madinet Masr is in talks with potential partners in the UAE and Saudi Arabia for its planned GCC expansion, the local real estate developer’s CEO Abdallah Sallam told Zawya. Sallam didn’t name the companies involved in the talks or share a concrete timeframe for the developer’s first foray outside Egypt.

First stop is likely Riyadh, Sallam said, adding that “we are talking with three to four companies in Saudi Arabia…some of them have their own lands.” The company is also in talks with a local and a foreign firm in The UAE.

CIRCLE YOUR CALENDAR-

This year’s Africa Business Summit will run between 30-31 May at the London Business School under the theme Designing Africa-Centric Growth Models for 2050. The Africa Business Club-organized summit will bring together industry leaders to discuss business models for the continent’s future, with panels covering energy and infrastructure, private equity and venture capital, and even sports.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

Israel launched a limited ground operation in Gaza on Wednesday, with troops reoccupying areas outside population centers, the Israeli army said in a post on X. Troops have expanded their control over parts of the Netzarim Corridor, which runs east to west across the strip “in order to expand the security zone and to create a partial buffer between northern and southern Gaza.” Israeli Defense Minister Israel Katz issued a “final warning” just before the operation began, saying residents in battle zones would soon be evacuated again unless Hamas freed the remaining hostages and was removed from power.

The operation comes after Israel resumed strikes on Gaza earlier this week, killing hundreds of Palestinians and marking the deadliest day in the strip in over two months and the collapse of January’s ceasefire agreement. Hamas condemned the new ground operation as a “dangerous violation” of the ceasefire agreement. (Bloomberg | Reuters | BBC | New York Times)

AND- Fed keeps rates unchanged: The US Federal Reserve left interest rates unchanged on Wednesday, as policymakers grapple with heightened economic uncertainty amid the Trump administration’s tariff-heavy trade policies. We have the details in this morning’s Planet Finance. (Reuters | CNBC | Bloomberg | AP | BBC | CNN)

Egyptian fintech player Valu could hit the EGX as soon as this June

Valu is on the runway to make its EGX debut this summer… Regional financial services giant EFG Holding has gotten preliminary approval from the Financial Regulatory Authority to restructure its ownership of consumer finance platform Valu ahead of the fintech player’s hotly anticipated EGX debut, according to a statement (pdf) from EFG Holding and another (pdf) from the FRA. The fintech player could see its shares trading on the EGX as early as this June.

…and every shareholder of EFG Holding will get a piece of the action: Each EFG Holding shareholder as of a to-be-set date will receive shares of U Consumer Finance, which owns and operates the Valu brand, before the company makes its trading debut. U Consumer Finance will list on the EGX without a formal initial public offering of shares. It’s a unique transaction structure — one that finance nerds like us will be geeking out over for months to come.

EFG Holding shareholders are in line for a windfall worth north of USD 63 mn. U is valued at EGP 15.6 bn (c. USD 310 mn at today’s rate of exchange), according to a report by independent financial advisor BDO Keys Financial Consulting. EFG Holding is distributing U shares representing about 20.5% of the company, valuing the transaction at roughly EGP 3.2 bn (c. USD 63.2 mn).

How’s all this going to work? The transaction mechanics are pretty elegant:

U is held by EFG Finance, a unit of EFG Holding;
The firm will transfer a 20.5% stake in U directly to EFG Holding;
EFG Holding will then distribute the stake to its shareholders as a dividend in lieu of conventional cash-payout for 2024. Shareholders will get U shares on a pro-rata basis — in proportion to their current ownership of EFG Holding. The move is pending the green light from EFG’s general assembly.
U will make its EGX debut at the same time as the shares are granted to EFG Holding shareholders.

The dividend is almost as good as cash — and a lot more exciting. While EFG Holding shareholders will receive their dividends in the form of U shares, the shares will be immediately admitted to trading on the EGX. That will mean shareholders have the same-day option of selling their shares (we expect both domestic and foreign institutional interest to be significant) for cash with no lock-up period — or sticking with the Valu story for the long term as the company looks to grow at home and abroad.

Could this be Amazon’s cue to buy in? Amazon acquired USD 10 mn worth of EFG Holding’s London-listed global depositary receipts (GDRs) in 2022, with the option to convert them into a 4.255% stake in Valu’s parent company at its USD 235 mn valuation at the time. That suggests U’s valuation has risen north of 30% since the transaction date based on the fair value calculated by BDO Keys. The conversion was said to be contingent on a third-party investment in Valu through a sale, IPO, or other liquidity event, which Valu CEO Walid Hassouna confirmed yesterday in an interview with Al Arabiya (watch: runtime: 7:46).

EFG Holding will remain the controlling shareholder of U Consumer Finance, keeping an effective 67% stake.

Taking Valu public this way allows EFG Holding to create significant future upside for its shareholders — and to do so without a messy argument over valuation at a time when new paper on the EGX has been scarce.

REMEMBER- Valu holds a good chunk of the market: Founded in 2017, the consumer finance company holds a 24% market share in Egypt, having financed some 7.8 mn transactions since its inception.

ADVISORS- EFG Hermes is quarterbacking the transaction as the sole financial advisor and manager and while our friends at Zulficar & Partners are legal counsel.

Market reax: EFG Holding's EGX shares closed down a hair over 1% yesterday. That mirrors the market: The benchmark EGX 30 closed down nearly 1% for the day.

KARIM AWAD GAVE US THE INSIDE STORY

We spoke yesterday morning with EFG Holding Group CEO Karim Awad about the transaction. Excerpts from our conversation:

EnterpriseAM: What was behind your decision to move forward with the transaction?

Karim Awad: We continue to feel that the market is not assigning a proper valuation to our share price, particularly for some of the businesses we’ve built over the past decade. The primary example of this is Valu. Valu has evolved from a startup into a household name. It is growing at significant year-on-year rates, yet the market still does not seem to fully understand that. We explored different options to redress this issue and concluded that the best course of action is to distribute Valu shares to our shareholders rather than selling to third parties.

The company is now at a stage where it still has strong growth potential but is already profitable, has a solid management team in place, and is effectively ready to enter the market.

E: What does the transaction look like beyond the distribution of the dividend to shareholders? Are you considering bringing in institutional investors?

KA: Once Valu shares start trading, all EFG shareholders will automatically be shareholders in Valu’s parent company. As trading begins, shares will change hands on the market. Until then, we will take two key steps to build momentum:

We’ll conduct a domestic roadshow in the coming days to introduce the market to Valu, its growth trajectory, and its fundamentals;
In April, during our One-on-One Conference in Dubai, we’ll engage with international investors. We believe Valu will appeal to global investors, and we’ll use this opportunity to generate interest.

At this stage, we aim to create strong appetite for U Consumer Finance shares — not just from retail investors but also from institutional investors globally.

E: Can you walk us through the timeline for the transaction?

KA: We will call for a general meeting, likely in May, as this is a standard dividend distribution — except that it involves shares rather than cash. During the meeting, we will determine key dates, including the record and ex-dividend dates. If everything proceeds smoothly, we expect Valu to begin trading sometime in June.

E: How should EFG Holding investors view this transaction in the context of your non-banking financial institutions businesses? What does it mean to your commitment to the NBFI segment?

KA: Our NBFI businesses — including Valu, EFG Corp-Solutions (leasing and factoring), Tanmeyah (microfinance), and Bedaya (mortgage finance) — are core to our strategy. While we are distributing part of Valu, this move unlocks value for EFG Holding shareholders by crystallizing the true market worth of a key asset. The market was not fully valuing Valu within EFG Holding’s stock price, and this helps correct that imbalance. That said, our strategy remains unchanged — we continue to see NBFI as one of our three core pillars of growth. We have full confidence in the management team, which has very ambitious growth plans.

E: How did the regulator react when you first brought up the transaction?

KA: The FRA has been incredibly supportive. From the moment we introduced this concept — back in December or January — they were enthusiastic about the idea. The FRA saw this as a new and innovative way to bring companies to market. Given the current global market conditions, this approach offers a viable alternative to an IPO, one that we believe will attract investors and act as a catalyst for the broader Egyptian stock exchange.

BACKGROUND- We first got word of Valu’s plan to list on the EGX in March of last year, when Hassouna announced that the company would offer up to 25% of its shares on the EGX within a year.

Egypt’s PM confirms gov't looking for a new valuation for Banque du Caire in preparation for stake sale

The state has appointed an advisor to value Banque du Caire, Prime Minister Moustafa Madbouly said during his weekly presser yesterday (wa tch,runtime: 20:46). “The last valuation has become outdated,” Madbouly said, adding that work on the process has begun.

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

The state is yet to decide on the stake to be sold: “Based on [the new valuation], the state will decide on the size of the stake to offer, either to a strategic investor, or through a stake sale on the EGX,” he said.

REMEMBER- A banking source told EnterpriseAM earlier this year that BdC owner Banque Misr had appointed an advisor to determine the structure of the sale, including allocations for public and private placements. They had mentioned that the sale is expected to occur in 1H 2025. Another source had told us earlier this month that Banque Misr is seeking USD 1-1.2 bn from the direct sale of a 45% stake in BdC, and is looking to list another chunk of the lender on the EGX in a separate offering, only to retain a non-controlling stake.

An Emirati investor is interested: Emirates NBD is reportedly conducting its own due diligence of the state-owned lender as the Dubai-listed lender looks to acquire an undisclosed stake in the state-owned bank.

ALSO FROM THE PRESSER-

#1- Making it easier for tourism players to operate: Madbouly has directed the Tourism Minister to look into simplifying the licensing and fees for new tourism projects, and draw out a detailed outline of the necessary measures the government needs to take for the end.

#2- Gov’t to pay more for local wheat: The Madbouly government will pay farmers EGP 2.2k per ardeb of wheat during the upcoming harvest season. The move follows a similar one last year, when the government increased its payment for local wheat to EGP 2k per ardeb from EGP 1.5k previously.

BEFORE THE PRESSER THERE WAS THE CABINET MEETING-

Before Madbouly went live, the cabinet held its weekly meeting. Among the most notable decisions:

Approving a draft decision to set up a committee to develop a proposal for an early warning system to prevent SMEs from facing financial distress. The system will help detect financial and administrative risks that could lead to business failure and will intervene to provide support before issues escalate.
Giving the go-ahead to re-tender two iron and steel production licenses for seamless steel pipes. The licenses will be auctioned through a limited tender for specialized local companies.
Approving a draft law amending some provisions of the Sports Law. The law regulates sports affairs and bodies and sets the rules for resolving sports disputes.

Egypt’s steel industry is starting to feel the pinch of US, EU steel tariffs

2025 is quickly becoming the year of protectionism and trade wars — and Egypt’s steel industry is far from immune. Egyptian steel exports are facing increasing barriers due to protective tariffs, which are set to drastically limit access to key international markets. Ongoing EU concerns over steel dumping in the bloc coupled with the Trump administration’s apparent willingness to pick any trade war fight it can paint a concerning picture for Egypt’s steel industry in the years ahead.

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

The US imposed a 25% tariff on all steel imports earlier this month, while the European Commission announced a 15.6% temporary tariff on hot rolled coil imports from Egypt starting 7 April, pending a final decision in October. Also in the EU’s sights are Japan and Vietnam, stemming from an August 2024 anti-dumping investigation.

Industry insiders are forecasting a likely decline in the revenues of local producers, including Federation of Egyptian Industries’ Metallurgical Industries Chamber head Mohamed Hanafi, who told us that these tariffs will negatively impact Egypt’s steel exports. Although Egypt is keeping itself out of ongoing global trade wars, it will still feel the fallout.

Steel exports are already on the down, falling 4% y-o-y in 2024 to USD 2.3 bn, according to official data from the Export Council for Building Materials seen by EnterpriseAM. ElMarakby Steel Chairman Hassan Elmarakby told EnterpriseAM that US tariffs under Donald Trump’s first term have already weakened exports, expecting further challenges if similar tariffs are reinstated or if European tariffs persist.

The US dropped from fourth to sixth place among Egypt’s steel export markets last year, with purchases falling to USD 126.6 mn from USD 230 mn in 2022. Italian and Spanish imports also declined significantly, falling 43% y-o-y to USD 185 mn and 42% y-o-y to USD 225 mn, respectively.

More export barriers could also be coming our way, with Turkey and the UK considering import quotas for Egyptian steel. Turkey, which was Egypt’s top steel importer last year, imported USD 256 mn worth of steel, while the UK imported USD 39 mn.

What about alternative markets? While steelmakers have long sought to diversify exports, South American and African economies cannot absorb Egypt’s large output, Hanafi told EnterpriseAM. Kenya was the top African importer last year, purchasing a comparatively small USD 27.5 mn worth of steel, while South Africa’s imports dropped from USD 162 mn a decade ago to just USD 26k last year.

Thankfully, Arab markets and Brazil offer some hope, with exports to Saudi Arabia growing 150% y-o-y to USD 108 mn in 2024, while Libyan imports rose 151% y-o-y to USD 48 mn, and Lebanese imports increased 2% y-o-y to USD 62 mn. Brazil saw the highest value growth last year, with its steel imports jumping 283% y-o-y to USD 149 mn, making it Egypt’s fifth-largest steel buyer.

The local steel industry is running well below capacity, with the country’s annual production rarely exceeding 10 mn tons, despite annual capacity standing at 16 bn tons, an industry insider told EnterpriseAM. The high capacity sector — thanks to roughly EGP 250 bn in investments — is constrained by weak domestic demand due to 2021 government restrictions on construction, which have only just been overturned, and export constraints.

Beltone, Thndr, Telda can now carry out the full suite of securities brokerage activities online

Beltone Securities Brokerage, Thndr Securities Brokerage, and fintech outfit Telda received the thumbs up from the Financial Regulatory Authority (FRA) to conduct numerous securities brokerage activities online, the FRA said. While some of the firms have been conducting securities brokerage activities online, this recent approval allows them to carry out the full suite of activities online, like e-KYC (electronic Know Your Customer), verification, and contract execution, and record keeping through partnerships with Vlens and Valify Solutions. This aims to simplify stock market access and open up stock trading to a wider client base.

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

Since when does Telda offer brokerage services? The fintech player is set to add brokerage services to its offerings of prepaid card issuance, payment services, and money transfers following its acquisition of City Capital Securities, it said in a statement (pdf). Clients will soon be able to trade equities through the Telda app — trail operations kick off next month and the official launch of services is slated for May, CEO of NBFS at Telda Hisham Ibrahim told EnterpriseAM.

“This step aligns with Telda's strategy to become the comprehensive destination for providing all non-banking financial services through financial technology,” Ibrahim said in the statement.

Telda has big plans: Telda is gearing up to roll out its first equity investment fund in 2Q 2025, as part of its expansion into asset management, Ibrahim told us. The company is currently in talks with multiple investment managers to set up the fund. The fund will be the first of many Telda plans to launch, he said.

MEANWHILE- A pulse check on Beltone’s plans to launch a handful of new funds: Beltone Holding plans to launch five new funds this year, including an equity fund, with an initial target size of EGP 10 mn, as well as another USD-denominated fund, both of which will be launched this month, Khalil El Bawab, Beltone Holding’s CEO for local and regional markets, told EnterpriseAM yesterday. The firm is currently mulling the launch of two equity investment funds in the UAE and Saudi Arabia, he added.

REMEMBER- El Bawab first let us in on Beltone’s plans to introduce new funds in June, when he told us that the firm has “already applied for four new low-, medium-, and high-risk funds, ranging from fixed-income to equity funds.”

AUTO INS. GOES DIGITAL-

You will be able to insure your new car online: Misr Ins. and Sarwa Ins. got the green light from the authority to start issuing comprehensive auto ins. policies for new vehicles digitally, according to a statement from the FRA. The move will allow the insurers to issue policies through their mobile apps and without vehicle inspections, a senior ins. broker told EnterpriseAM, adding that we can expect other insurers to follow in Misr Ins. and Sarwa Ins.’s footsteps of going digital.

Ezz Elarab expands its premium automotive portfolio with the introduction of three new exclusive brands

Ezz Elarab Group launched smart in Egypt as the latest addition to its growing portfolio in January 2025. Marking its African debut, smart introduced its all-electric #1 and #3 models in a spectacular showcase against the backdrop of the Pyramids, reinforcing the brand’s global expansion across 31 markets. The launch event, complete with an aerial display, signaled a new era of sustainable mobility in Egypt.

At the heart of smart’s philosophy is “open your mind”, a seamless blend of modern luxury and intelligent technology. Designed by Mercedes-Benz, the brand’s minimalist yet high-tech aesthetic embodies “Love, Pure, Unexpected”, setting a new benchmark for premium electric vehicles. With Egypt's Vision 2030 prioritizing sustainability, smart’s entry is a timely push toward widespread EV adoption.

But smart isn’t the only high-performance newcomer under Ezz Elarab’s umbrella. In November 2023, the group secured the exclusive representation of Lotus, the legendary British supercar brand. Known for its lightweight engineering and adrenaline-fueled performance, Lotus adds a thrilling new dimension to Egypt’s automotive scene, catering to purists who crave precision and speed.

Looking ahead, Ezz Elarab is gearing up for the highly anticipated arrival of Lynk & Co, the tech-driven sister brand of Volvo, set to launch in 2025. Lynk & Co’s innovative approach to connectivity and mobility aligns with a new generation of car buyers seeking cutting-edge design and seamless digital integration.

To house its expanding collection of premium brands, Ezz Elarab has unveiled state-of-the-art showrooms at Royal Park, Sixth October, where smart, Lotus, and Lynk & Co now sit side by side. More than just a display of world-class vehicles, these showrooms offer a fully integrated sales and after-sales experience, ensuring that customers receive the highest level of service throughout their ownership journey.

Azimut partners with MNT-Halan to launch a EGP 250 mn real estate investment fund

Azimut, MNT-Halan are setting up a real estate investment fund: Asset manager Azimut and fintech player MNT-Halan are awaiting the green light from the Financial Regulatory Authority to launch their real estate investment fund, with an initial capital of EGP 250 mn, Azimut Managing Director Ahmed Abou El Saad told EnterpriseAM. Abou El Saad expects the fund to go live in 2Q 2025. The two players have plans to boost the fund’s capital to EGP 2 bn within two years, he told us.

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

More in the pipeline for Azimut: The asset manager is looking to launch two other investment funds this year, the managing director said.

What’s new about this fund? The fund will be open to both retail and institutional investors while offering greater flexibility for unit holders in terms of liquidation and transferability — without being listed on the EGX, Abou El Saad explained to us. This structure is designed to make the fund accessible to a wider range of investors.

Azimut’s fixed income fund Maashy AZ will increase its capital to EGP 300 mn to take advantage of recent regulatory changes allowing private pension funds to invest more in equities, Abou El Saad told us. The fund’s founding entities include the Suez Canal Authority employees fund, the Judicial Authorities employees’ fund, and the Ezz Dekheila employees’ fund.

The capital hike comes in response to new FRA regulations introduced in January, which increased the maximum allocation for private pension funds in open-ended investment funds and publicly traded stocks.

EFG Holding sees revenues rise 66% to a record EGP 24.4 bn in 2024

Our friends at EFG Holding closed out 2024 with record revenues of EGP 24.4 bn, up 66% from 2023, on the back of solid growth across its three verticals — investment bank EFG Hermes, commercial bank Bank NXT, and NBFI EFG Finance — the company said in its latest earnings release (pdf) and accompanying statement (pdf). The company saw its net income rise 71% y-o-y to EGP 4.3 bn during the same period. On a quarterly basis, revenues were up 39% y-o-y to EGP 5.8 bn in 4Q 2024, while net income rose 17% y-o-y to EGP 945 mn.

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

Its investment bank EFG Hermes saw its revenue climb 81% y-o-y in 2024 to EGP 14.7 bn, driven by “unrealized gains on investments/seed capital, foreign exchange gains, and outstanding sell-side performance.” During the year the division’s net income increased 63% y-o-y to EGP 2.5 bn. While on a quarterly basis, revenues were up 47% y-o-y to EGP 3.1 bn and net income rose 15% to EGP 515 mn.

The group’s NBFI arm EFG Finance reported EGP 4.8 bn in revenue for 2024, up 60% y-o-y, with Valu and Tanmeyah leading the growth, driven by higher net interest income and loan book expansion. The unit’s net income more than doubled during the year, increasing 134% y-o-y to EGP 815 mn. During the last quarter of the year, revenues saw a 51% y-o-y rise to EGP 1.5 bn, while net income was up 13% y-o-y to record EGP 203 mn.

EFG’s commercial banking arm Bank NXT delivered a strong performance, with revenues rising 37% y-o-y during 2024 to EGP 5.0 bn, driven by a 54% increase in net interest income to EGP 3.9 bn. The lender’s net income rose 54% y-o-y to EGP 1.8 bn, with EGP 909 mn belonging to EFG Holding. Zooming in, revenues were up 11% y-o-y to EGP 1.2 bn during 4Q 2024 and net income increased 26% y-o-y to EGP 227 mn during the quarter.

What they said: “Leveraging our strong balance sheet and expanding regional presence, we remain committed to seizing new opportunities and driving sustainable growth. The continued expansion of our investment bank in the GCC, alongside the positive momentum of Valu, Bank NXT, and Tanmeyah, reflects the strength of our strategy and adaptability,” said Group CEO Karim Awad.

Egyptian fintechs and asset managers make it onto Forbes Middle East’s rankings

Twelve Egyptian fintech players made it onto Forbes Middle East’s Fintech 50 list for the year, making Egypt the second most represented country in the lineup. Leading the region — and nudging Egypt out of top spot by just one — was the UAE with 13 fintechs on the list. This year welcomed Sahl, Khazna, and Klivvr as newcomers to the list. Featured on the list this year:

Fawry at #2;
MNT-Halan at #7;
Thndr at #8;
Valu at #10;
Aman Holding at #15;
MDP at #19;
Paysky at #27;
Paymob at #30;
Sahl at #38;
Contact Financial Holding at #43;
Khazna at #45;
Klivrr at #46.

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

PLUS- Three Egyptian asset managers also landed on Forbes Middle East’s Top 40AssetManagers list, which features key players shaping the region’s investment landscape. Leaders on the list, who oversee substantial portfolios across equities, debt funds, discretionary investments, and private equity, collectively managed over USD 439 bn in assets in 2024. Featured on the list this year:

Karim Awad, group CEO of EFG Holding, at #10;
Amr Abol Enein, CEO and managing director of CI Capital Asset Management, at #37;
Adel Kamel El Waly, managing director and CIO at Al Ahly Financial Investments Management, at #39.

It’s not just Egypt taking note of Investment Minister Hassan El Khatib’s trade mission to India

The world’s largest-selling English-language daily newspaper sat down with Investment Minister Hassan El Khatib to find out why he thinks Indian companies should think about setting up shop in Egypt. El Khatib told the Times of India’s economic pages that Egypt’s recent infrastructure and logistics investment push along with cheap labor costs, attractive investment law, and connections to Europe make it a destination that Indian companies should put on their investment radar.

“I'm keen to explore [together] more into sectors like automotive. Your track record there is fascinating for automotive companies, sectors, because you've done it from scratch,” he told the paper. The minister also name checked the Indian pharma industry and green hydrogen as potential areas of fruitful cooperation.

DATA POINT- Indian companies have invested some USD 3.8 bn in Egypt, spread between 55 companies operating in the country across numerous sectors, according to an Investment Ministry statement.

Fawry got an Islamic financing license from the FRA

CAPITAL MARKETS-

Fawry secures Islamic financing license: The Financial Regulatory Authority granted Fawry MSME Finance an Islamic financing license, according to a statement (pdf). The new license opens the door for Fawry to offer sharia-compliant financial solutions, “tailored to the growing demand for Islamic finance in Egypt.”

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

ENERGY-

Oil Minister Karim Badawi discussed the terms of leasing the Energos Power floating regasification unit with German officials during his visit to Berlin yesterday, according to a statement. The discussions followed initial negotiations in Cairo in late February. The vessel is currently docked in Germany’s Mukran Port.

Remember: The Oil Ministry earlier this month announced that it is exploring the possibility of leasing a German LNG regasification vessel, and said a delegation would iron out the final terms of the agreement by the end of March. The vessel is one of a handful of regasification units the government had been in talks to lease in preparation for high energy demand in the summer months.

RENEWABLES-

The Gulf of Suez will soon be home to yet another wind farm: Siemens Gamesa inked an agreement with the Egyptian Electricity Transmission Company to set up a 500 MW wind farm in the Gulf of Suez, according to a statement. Under the agreement, Siemens will build, finance, and operate the project. No timeline or financial ticket was disclosed for the project.

This isn’t the first time we’ve heard about the project: Egypt’s cabinet greenlit the project in April under a build-own-operate agreement.

EXPANSION-

Investment bank Zilla Capital is looking into launching specialized funds in Saudi Arabia, including a pre-IPO fund, with USD 300 mn target capital over five years to invest in two to three companies annually, Managing Partner Marwan Younes told Zawya. Zilla has had its sight set on the Kingdom for some time now, with its chairman unveiling plans to launch its first project in KSA — an asset management company — back in September.

PHARMA-

Vitabotic’s local partner Aptecure announced EGP 600 mn expansion: Local private-sector pharma company Aptecure is on board with the government’s pharma localization plan and has an EGP 600 pharma production line expansion in the works to prove it, company officials told the Egyptian Drug Authority, according to a statement. The exclusive partner of British vitamin and food supplement company Vitabiotics also signaled its intention to increase cooperation with the authority.

HEALTHCARE-

State allocates EGP 3 bn to end hospital waiting lists: The government has set aside EGP 3 bn to provide treatment to 60k Egyptians without health ins., according to a joint statement from the health and finance ministries.

Fed holds rates steady, warns of rising inflation and slower economic growth

The US Federal Reserve held interest rates steady for the second time at the 4.25%-4.50% range, in line with expectations, it said in a statement following its meeting yesterday. This marks its first interest rate meeting since US President Donald Trump’s tariff-focused economic agenda took hold. The Fed previously opted to keep interest steady in January, hitting pause on a cutting spree which saw interest rates drop 50 bps in September, and 25 bps in November and December.

The rationale: While economic activity was expanding gradually and unemployment rate lows had steadied, “inflation remains somewhat elevated” and "uncertainty around the economic outlook has increased,” the Fed’s statement said. The Fed lowered its GDP growth forecast for the US to 1.7%, down from 2.1%. “Inflation has started to move up now, we think, partly in response to tariffs, and there may be a delay in further progress in the course of this year,” Fed Chair Jerome Powell said at a presser.

Going forward: The Fed will continue to assess data and the balance of risks, it said, with most policymakers still expecting two rate cuts this year.

Market reax: US stocks rose on the news, with the Nasdaq up 1.4% and the S&P gaining 1.1%, ending a streak of losses from earlier this week on the back of a sell-off in tech stocks. At the same time, investors ramped up bond purchases, reflecting concerns around economic growth.

ALSO- China’s central bank also kept key interest rates unchanged, as the country looks towards stabilizing its currency and shoring up growth.

The Bank of England (BoE) is also expected to hold interest rates at 4.5% on Thursday, as inflationary pressures persist and economic growth slows, CNBC reports. Governor Andrew Bailey warned earlier this month that Trump’s trade tariffs pose a risk to the UK economy, while the BoE projects inflation will temporarily rise to 3.7% — well above its 2% target — driven by higher energy prices.

MARKETS THIS MORNING-

Asian markets are mixed following the interest rate moves yesterday, with China’s CSI 300 dipping 0.2%, and Hong Kong’s Hang Seng index falling 1.4%. South Korea’s Kospi was up 0.3%, while Japan’s stock markets were closed for a holiday. Over on Wall Street, futures are pointing to a strong open after yesterday’s rally.

EGX30	31,348	-0.8% (YTD: +5.4%)
USD (CBE)	Buy 50.57	Sell 50.71
USD (CIB)	Buy 50.60	Sell 50.70
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,709	-0.7% (YTD: -2.7%)
ADX	9,438	-0.3% (YTD: +0.2%)
DFM	5,117	-0.6% (YTD: -0.8%)
S&P 500	5,675	+1.1% (YTD: -3.5%)
FTSE 100	8,707	0.0% (YTD: +6.5%)
Euro Stoxx 50	5,507	+0.4% (YTD: +12.5%)
Brent crude	USD 70.78	+0.3%
Natural gas (Nymex)	USD 4.20	-1.0%
Gold	USD 3,058	+0.6%
BTC	USD 85,822	+4.2% (YTD: -8.3%)

THE CLOSING BELL-

The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 4.9 bn (38.7% above the 90-day average). International investors were the sole net sellers. The index is up 5.4% YTD.

In the green: Ibnsina Pharma (+3.4%), Palm Hills Developments (+2.1%), and Rameda (+1.6%).

In the red: Orascom Development (-3.4%), Oriental Weavers (-3.0%), and Qalaa Holdings (-2.7%).

My Ramadan Routine: Ahmed Abou El Saad, CEO of Azimut Egypt

Ahmed Abou El Saad, CEO of Azimut Egypt: For our special Ramadan edition of the weekly My Morning Routine column, we spoke to Ahmed Abou El Saad (LinkedIn), Azimut CEO and Azimut Group’s Head of Regional Asset Management in MENA and Turkey. We asked Abou El Saad the usual questions to find out how a successful community member starts their day and threw in a few more to learn how he adjusts to Ramadan and what he looks forward to during the holy month. Edited excerpts from our conversation:

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

My name is Ahmed Abou El Saad and I have been the CEO of Azimut Egypt for 16 years. I also serve as Head of Asset Management for Azimut Group in the Middle East, North Africa, and Turkey and a board member of the Egyptian Exchange, where I represent securities firms. Additionally, I’m President of CFA Society Egypt and Vice Chairman of the Egyptian Investment Management Association. My work across the two associations focuses on advancing and diversifying Egypt’s capital markets, ensuring they align with global best practices. Investment and capital markets have been my foremost passion for over 25 years — the time I spent working in this industry.

Introducing new investment products to the market has been the linchpin of Azimut’s strategy. Azimut was the first non-bank financial institution to get licensed to launch investment funds, which were previously limited to banks and their clients. We were the first in the local market to launch a gold investment fund, a fund investing in private ins. funds, and a charitable investment fund — namely the Ataa Fund, which supports people with disabilities. We now manage a total of 15 investment funds. We also worked with the Financial Regulatory Authority to help set the regulatory framework that would allow brokerage firms to market investment funds and leverage tech-based platforms that make financial products more accessible.

Technology underpins our goal of reaching a broader audience. We recently secured the FRA’s approval to launch digital investment funds, which positions us to reach a wider client base. As part of this vision, we're already providing investment tools to many leading fintech firms and digital platforms — such as Valu, MNT-Halan, Thndr, Menthum, Fawry, and Belbaqy, among others.

Blockchain is the next frontier for investment management, both globally and locally. After years of setting up a fintech ecosystem in the local market, Azimut is gearing up to move all its investment activities to blockchain-based infrastructure.

As CEO of Azimut Egypt, I set the company’s strategic direction, drive innovation, and introduce best practices to the local market. I start my day by catching up on financial markets, both globally and locally. I then check in on all the new investment products and asset management tools we’re currently developing. We have a massive pipeline of ideas that we’re working on — we essentially need to clone ourselves to execute them all.

I don’t follow a strict morning routine. I usually wake up around 8am and read EnterpriseAM on my way to the office. I arrive by 9am and spend the first 30 minutes reviewing emails and catching up on financial news before I hop into a meeting with my team for another 30 minutes. The rest of my day is made up of follow-ups, client meetings, and internal meetings about new and upcoming products — sometimes until 6-8pm.

Exercise and prayer are my daily constants. Working out helps me release stress and negative energy. So I spend about an hour each day between 6-7pm at the gym after work. In Ramadan, I shift workouts to pre-Iftar — I play sports with my kids or watch my son’s football matches at the Ramadan tournament.

My Ramadan schedule is more structured, with shorter work hours and more time for reflection. The slower pace also helps me focus better and gives me time to think of new investment products.

Supporting people with disabilities is a personal priority. My only sister, who is five years older, has special needs, and I consider her my true inheritance in life, especially after our father passed away. I visit her every weekend in Alexandria. She inspired me to launch the first school for people with disabilities in Egypt and help establish Ataa Fund.

Technology serves as my personal assistant. I rely on to-do lists and my phone calendar to organize everything from business meetings to family commitments, including my son’s football matches.

My work and personal life greatly overlap. My clients and colleagues are the friends I spend most of my time with outside of work hours. I’m also fortunate to have a wife who works in the same field. It helps her understand my commitments and the nature of my work. We have two sons — Adham, a 16-year-old football player, and Salim, who is nine — and they are my closest friends.

Similarly, my personal and professional goals are intertwined. I want to leave a lasting mark on Egypt’s investment landscape and make investing as common as food, healthcare, or education. The macroeconomic developments we’ve seen over the past years — inflation, high interest rates, and a declining EGP — present the perfect chance to expand investment culture to all segments of society.

The best advice I’ve ever received was to stay flexible and never make decisions without thorough research. Also, “The biggest risk is not taking any risks,” a quote from Facebook founder Mark Zuckerberg, has profoundly impacted me. When you avoid taking action for fear of failure, you harm your chances of success.

CALENDAR

MARCH

Arla Foods’ deadline for Domty acquisition offer.

Egypt-Sierra Leone Business Forum.

Egypt to launch its Integrated National Strategy for Sustainability and Development Financing.

APRIL

7-9 April (Monday-Wednesday): Narrative PR Summit’s 9th edition, Somabay

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

10 April (Thursday): Capmas expected to release inflation data for March.

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

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

30 April (Wednesday): Deadline for Australia Awards Scholarships applications.

Business-to-business forum of Egyptian and Moroccan companies to promote bilateral trade, Cairo, Egypt.

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.

MAY

10 May (Saturday): Capmas expected to publish inflation data for April.

1 May-10 July (Thursday-Tuesday): 500 Global's Scale Up Program, Cairo

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development.

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

Egyptian Exporters Association (Expolink) exhibition, Italy

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo.

JUNE

10 June (Tuesday): Capmas expected to publish inflation data for May.

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

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.

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

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

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

SEPTEMBER

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

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

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Centre.

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

EVENTS WITH NO SET DATE

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

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

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.

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

1 January: European Union’s Carbon Border Adjustment Mechanism (CBAM) to fully come into effect

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

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings for 2027.

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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