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Wednesday, 23 Jul 2025

What We're Tracking Today
Ipo
Egp Watch
Capital Markets
Economy
A Message From Visa
Investment Watch
Startup Watch
Also On Our Radar
Planet Finance
Hardhat
Calendar

Bonyan closes flat on debut

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Today at a glance

1

IPO

Bonyan’s share price closed flat on debut yesterday.
2

EGP Watch

EGP strengthens against the USD following significant inflows.
3

Capital markets

Real estate + banking equities and incoming IPOs behind EGX30’s record high.
4

Economy

Current account deficit narrows to USD 13.2 bn in 9M FY 2024-2025.
5

Investment Watch

Qantara West to host three new Chinese factories worth USD 52.6 mn.
6

Startup watch

Local fintech Flend raises USD 3 mn seed round to fund national expansion.
7

Also on our Radar

A new Egyptian-Saudi EGP 70 bn real estate project.
8

PLANET FINANCE

Trump’s tariff blitz could choke China’s alternative exporting routes.
9

HARDHAT

Local companies are playing an important role in Africa’s infrastructure push.

Wednesday, 23 Jul 2025

What We're Tracking Today
Ipo
Egp Watch
Capital Markets
Economy
A Message From Visa
Investment Watch
Startup Watch
Also On Our Radar
Planet Finance
Hardhat
Calendar
1

What We're Tracking Today

El Khatib is in Japan to drum up investments

Good morning, all. We end this shorter-than-usual work week with another packed issue, led primarily by capital markets news, including Bonyan’s muted market debut and a breakdown of the driving forces behind the EGX30’s rally earlier this week. Momentum in the benchmark index’s rally momentum fizzled out before Bonyan could capture it in the company’s first day of trading, despite analysts suggesting that real estate players were a driving force behind the EGX30 hitting record highs on Sunday and Monday.

PLUS- We have a secondary macroeconomics theme going for us this morning, as the EGP strengthened against the greenback to its highest level in around eight months, while central bank figures indicate our current account deficit narrowed in 9M 2024-25.

** A QUICK PROGRAMMING NOTE- EnterpriseAM Egypt will be joining the rest of you in taking tomorrow off in observance of the 23 July Revolution. We’ll be back in your inboxes bright and early on Sunday with everything you may have missed from over the long weekend.

Something to look forward to in the weeks to come: The committee organizing the Grand Egyptian Museum’s (GEM) opening ceremony met yesterday to set a new date for the long-awaited event, Prime Minister Moustafa Madbouly said. The museum was initially scheduled to officially open its doors on 3 July, but the long-anticipated event was delayed to the last quarter of the year following Israel striking Iran mid-June. Coordination is now underway between the relevant authorities to decide on a new date and announce it.

ICYMI- We spoke to Aly Khattab, founder of Egyptian specialty coffee brand ReQaf, for our weekly Founder of the Week column yesterday. Check out the interview here.

Mark your calendar for the 2025 EnterpriseAM Egypt Forum, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterpriseadvisory.com to explore sponsorship opportunities.

WATCH THIS SPACE-

#1- The EGX is in advanced talks with six to seven temporarily listed companies to kick-start their public offering and begin actual trading on the market, AlArabiya reports, citing EGX Chairman Ahmed El Sheikh. No further information was disclosed.

#2- Al Mashat, AFC, Infinity Power talk green funding: Planning Minister Rania Al Mashat met yesterday with representatives from the African Finance Corporation's (AFC) asset management arm and our friends at Infinity Power to explore avenues to mobilize concessional finance for climate-resilient infrastructure, according to a statement. The discussions focused on AFC's Infrastructure Climate Resilient Fund for Africa which is backed by the Green Climate Fund and supports green energy and sustainable transport projects.

The end goal: The government is prioritizing partnerships with international institutions to unlock more green financing and expand private sector involvement in development, Al Mashar said. She directed technical teams to coordinate with AFC and Infinity Power to explore how local companies can take advantage of the new fund and assess next steps for implementation.

HAPPENING TODAY-

#1- We’re keeping our fingers crossed for Egyptian finance legend Mohamed El Erian to be elected the next chancellor of Cambridge University, with results expected to be published online later today. El Erian is pitching himself as a “guardian of tradition and a catalyst for innovation” in the race against the nine other competing candidates.

#2- Investment Minister Hassan El Khatib is currently in Japan to discuss ways to boost trade and joint investments, according to a ministry statement. During his visits to Tokyo and Osaka, El Khatib is scheduled to meet with senior government officials and representatives from four leading Japanese investment firms.

Keep your eyes peeled for Egypt-bound Japanese investments: El Khatib will meet with representatives from six investment and financial institutions and funds and take part in a seminar, which will bring together around 200 representatives from Japanese companies and institutions. He will also hold one-on-one meetings with four Japanese investment giants.

We’re going to be on the lookout for talks about an upcoming Samurai bond issuance, which a senior government source has recently told us about. Egypt is currently awaiting approval from the African Development Bank for a USD 400 mn guarantee for a new tranche of JPY-denominated bonds, the source noted.

PSA-

Thanaweya Amma results are out: Education Minister Mohamed Abdellatif yesterday announced the results of the Thanaweya Amma exams, according to a ministry statement. Over 73% of students who took the exams passed.

WEATHER- It’s another hot day in Cairo, with a high of 39°C and a low of 27°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 34°C and a low of 25°C.

ENERGY WATCH-

Egypt is importing some 1.1 bcf/d of natural gas from Israel, Oil Minister Karim Badawi told Asharq Business. The imports are up from around 650-750 mcf/d we were importing at the end of last month, when Israel ramped up its gas exports to Egypt from its Leviathan field after a brief halt as Israel exchanged airstrikes with Iran.

Egypt’s current domestic gas output — excluding production from Zohr — stands at 3.2 bcf/d, according to Badawi. Zohr alone is producing some 1.4 bcf/d.

2026 target in sight: The government aims to increase total production to 4.4 bcf/d by the end of 2026 as part of efforts to boost energy security.

IN CONTEXT- The country is facing a gas shortfall of about 2.5 bcf/d as local production and pipeline imports from Israel fall short of the 6.5 bcf/d needed to meet peak demand.

DATA POINT-

Our gold and precious metals exports jumped 194% y-o-y in 1H 2025, rising to USD 3.9 bn, the Federation of Egyptian Industries’ gold division said in a statement to the press seen by EnterpriseAM. The lion’s share of exports went to the UAE, which accounted for USD 3.2 bn of total exports, followed by Switzerland with USD 705 mn, and Canada with USD 6.3 mn.

** DID YOU KNOW that we 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.

THE BIG STORY ABROAD-

The US announced several trade agreements with Asian countries as we inch closer to the 1 August implementation date for reciprocal tariffs.

#1- The US and Japan reached a trade agreement setting reciprocal tariffs for Japan at 15%, in exchange for some USD 550 bn in Japanese investments in the US, US President Donald Trump said in a social media post (with no confirmation yet from the Japanese government). (Reuters | Wall Street Journal | Financial Times | Bloomberg | CNBC)

#2- Trump also agreed to a 19% tariff with the Philippines and Indonesia, with zero tariffs on US goods exported to both countries. (Reuters | Axios | CBS)

Meanwhile, China could be in for a deadline extension as officials are set to meet for talks in Stockholm next week, US Treasury Secretary Scott Bessent said. The discussions will also set out to “rebalance” the US-China relationship, Reuters reports.

Speaking of the US and China, Microsoft said Chinese hacking groups were involved in a major hack of its SharePoint software, which has affected hundreds — if not thousands — of firms and organizations hosting the software on-premise. (CNBC | Washington Post)

ALSO GETTING PLENTY OF INK- Black Sabbath frontman and heavy metal legend Ozzy Osbourne has died aged 76, just weeks after his retirement concert. The Internet is flooded with obituaries for the singer. (Guardian | Time | New York Times | BBC)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’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 look at local companies’ role in Africa’s USD 170 bn a year infrastructure push.

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2

IPO

Bonyan’s share price closed flat on debut yesterday

Bonyan made its long-awaited debut on the EGX yesterday under the ticker BONY.CA, opening at EGP 4.96 and trading within a tight range despite broader price movement bands. Shares hit an intraday high of EGP 5.15 before closing the session largely flat at EGP 4.97 a pop. Total trading volume came in at 67.9 mn shares (that’s 18% of the 363 mn shares debuted) executed across 10.3k trades.

Bonyan’s uneventful debut came despite the stock being granted a wider trading band, permitted to rise or fall by up to 40% — double the usual market limit — on its first day with no circuit breakers in place to curb volatility. Starting today, Bonyan shares will be subject to the same trading rules as the rest of the market.

Cheap, but no spark: Despite a favorable valuation, Bonyan’s debut was dragged down by a lack of catalysts, a muted real estate outlook, and investor preference for short-term visibility, Hany Genena, head of research at Al Ahly Pharos, told EnterpriseAM. Whether it gains traction may depend less on fundamentals and more on when and how it can prove its liquidity-generating capabilities, Genena explained. “From a valuation standpoint, the stock is cheap,” Genena said. Based on Bonyan’s share price, the average valuation per sqm in its portfolio stands around EGP 94-95k. “When you compare this to real estate prices in West or East Cairo — where the market speaks of EGP 200k per sqm and above — the offering came at nearly half the market rate,” Genena explained.

Not attractive to yield-seeking investors, until there’s visibility on liquidity: “All real estate companies, and even others outside the sector, tend to face skepticism around cashflow visibility,” he explained, citing a broader liquidity crunch. Bonyan, which announced it will not distribute dividends for at least two to three years due to ongoing expansion plans and outstanding liabilities, may have inadvertently alienated yield-seeking investors, Genena added. “This is why you see the markdown. Investors don't expect short-term payouts, and without clear catalysts, they’re hesitant,” he noted.

Broad-based market decline dragged Bonyan with it? The EGX30 slipped 0.96% yesterday, pulling back after hitting consecutive all-time highs at Sunday and Monday’s close. Weighing further on the real estate sector was a surprise decision by the New Urban Communities Authority (NUCA) to impose fees of up to EGP 1k per sqm on new hospitality developments in the North Coast. Although Bonyan is not directly exposed — with its portfolio centered on income-generating administrative and logistics assets — the announcement dampened sentiment across the broader real estate space.

“The market tends to paint the sector with a broad brush,” Genena explained. “Even if a company isn’t directly affected, sentiment matters — and [yesterday], sentiment was poor.” Genena emphasized that this wasn’t a case of bad timing or a poor summer window for IPOs. “It’s not about summer or winter, Ramadan or Christmas — if the asset is good, it will trade well regardless of the season. Timing is not the issue. The market just isn’t convinced there's a near-term upside.”

Who bought in? Its recent private placement attracted strong demand from major institutional investors, including Dar Al Handasah (which acquired 13% of the offering), Saudi Arabia’s Olayan Group, CI Capital, Arqaam Capital, Azimut, Al Ahly Pharos, Mubasher, and funds affiliated with Arqaam Financial, Al Borsa reports citing Chairman Shamel Aboul Fadl as saying. Financial institutions took 60% of the placement, with the remaining 40% allocated to high-net-worth individuals.

ICYMI- Bonyan priced its IPO at the lower end of its range (EGP 4.96) suggesting plenty of upside for buyers given the independent financial advisor said a fair value looks more like EGP 7.52. The EGP 1.8 bn IPO had generated strong demand from both institutional and retail investors. The listing was accompanied by a solid 1Q earnings release, with rental and service charge revenues up 51% y-o-y to EGP 158.9 mn and gross asset value rising to EGP 16.6 bn, up from EGP 15.96 bn at the end of 2024.

MEANWHILE- Bonyan is raising EGP 250 mn through a capital increase fully subscribed by its main shareholder, Sky Realty Holding, in a bid to support the firm’s expansion plans, Aboul Fadl added. Bonyan is entering the local logistics sector with the planned acquisition of an existing warehouse, part of a broader strategy to diversify income and boost recurring revenues, according to Aboul Fadl. The company is also nearing a transaction to acquire an administrative building in East Cairo worth up to EGP 1 bn, expected to close within two months.

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3

EGP Watch

EGP strengthens against the USD following significant inflows

EGP rises to eight-month high against USD: The EGP rose against the greenback yesterday to its highest level since November 2024 yesterday — the USD was changing hands at EGP 49.02-49.12 at the end of yesterday’s trading.

This rebound came on the back of substantial USD-denominated inflow, two sources in the banking sector told EnterpriseAM yesterday. Easing geopolitical tension and attractive interest rates spurred unprecedented foreign inflows into short and medium-term debt instruments, the sources noted.

These “extraordinary inflows” coincided with the beginning of the new fiscal year, a decline in debt obligations, and rising tax revenues, our sources said. These factors created a window for the Finance Ministry and the Central Bank of Egypt to manage yield rates, thereby making both the primary and secondary markets more attractive to investors, the sources added.

Meanwhile, interbank USD transactions declined due to a surplus of USD liquidity held by most state and private banks in the country, further strengthening the EGP.

Will this momentum last? To maintain this trend, more foreign investors need to be drawn into the local debt market, primarily through the issuance of new debt instruments, the two sources said, adding that a continued weakening of the USD index’s impact on emerging markets’ currencies will also provide the EGP with a chance to recoup some of its losses. Finance Minister Ahmed Kouchouk recently said that Egypt plans to issue up to USD 4 bn in international bonds over the next year to help address its USD 11 bn external financing gap.

Foreign investors move early, propel EGP higher: The EGP rebound points to a preemptive move from foreign investors in treasury bills and bonds, as they see how Egypt is committed to having its upcoming review of its USD 8 bn IMF loan program completed, Al Ahly Pharos’ Hany Genena told EnterpriseAM. “They [foreign investors] are preemptively banking on a potential interest rate cut by the CBE during its upcoming meeting in August,” Genena noted. A combined fifth and sixth review of our IMF loan program is expected to conclude in September or October, unlocking a USD 2.5 bn tranche, Kouchouk said last week.

Genena sees the CBE’s Monetary Policy Committee slashing rates by 100 bps when it meets next month. Goldman Sachs said in a recent research note that it sees no interest rate cuts before October, while Deutsche Bank is pencilling in a 200 bps cut in August, but highlights inflation risks that could influence the CBE’s decision at the time. The CBE decided earlier this month to leave interest rates unchanged in its fourth meeting of the year, in a move that marked a halt in the committee’s easing cycle, after it cut rates by 225 bps in April and 100 bps in May.

Current talks with Qatar and Saudi Arabia regarding new investments could have also played a role, Genena noted, adding that significant USD inflows are expected to hit Egypt in 4Q.

REFRESHER- Qatar is reportedly set to invest USD 4 bn in a major tourism development on the North Coast. The news comes a year after Abu Dhabi wealth fund ADQ signed the USD 35 bn agreement to develop Ras El Hekma. Kuwait is in talks to convert USD 4 bn of deposits it holds in Egypt’s central bank into direct investments across several sectors, while Saudi Arabia also plans to convert some of its USD 10.3 bn in deposits into long-term investments.

The EGP rebound aligns with Goldman’s expectations: The global investment bank noted that the EGP spot rate will be supported by anticipated strong portfolio inflows. This outlook is also underpinned by strengthened international reserves, which provide an additional layer of support for the EGP’s stability. Another aspect is that our local currency remains significantly undervalued, as the EGP is currently the second most undervalued currency among frontier FX Goldman Sachs covers, at about 30%. Goldman estimates that the EGP is likely to remain undervalued at 25% over the next 12 months, if the current exchange rate stabilizes near its current level.

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4

Capital markets

What drove the EGX30 to a record high this week? Real estate + banking

The benchmark EGX30 hit fresh highs at the start of this week, buoyed by the banking and real estate sectors, the expectation of new paper hitting the market, and a positive outlook for 2Q 2025 corporate earnings, according to analysts surveyed by EnterpriseAM. The positive sentiment pushed the EGX30 to record highs during Sunday and Monday’s session, before inching down 1.0% at the close of play yesterday. The index is now up 13.66% YTD.

The banking sector largely drove the rally, led by index heavyweight CIB, several analysts we spoke with agreed. CIB’s shares are up 15.4% YTD, and are up 0.7% this week alone. The bank’s shares are a bellwether for the EGX30, indicating to analysts that the index is continuing on a general upwards trend.

Banks are doing well, even as interest rates are starting to come down: The banking sector is broadly expected to report healthy earnings in 2Q 2025, which will further help support a stock market rally, even as the Central Bank of Egypt (CBE) moves ahead with its monetary easing cycle. As interest rates come down, investor interest in treasury bills is expected to cool off and instead be redirected to stocks, Managing Director of Alpha Financial Investments Mohamed told EnterpriseAM. Interest rate cuts could also support growth in real estate by making loans and financing payments more palatable, therefore encouraging buyers, he said.

Real estate players — particularly expectations of a strong showing from the sector in 2Q earnings — have also acted as significant catalysts for the index hitting record highs this week, according to our sources. The positive outlook on EGX-listed real estate companies’ earnings is underpinned largely by these companies shifting towards “exporting” real estate, whether by attracting foreign investors to buy units in the local market or by bringing in FX revenues with projects outside of Egypt, Hassan told EnterpriseAM. The sustained drive to launch projects outside Egypt is expected to contribute to strong earnings from real estate players down the line, which will further support the stock market, Hassan said.

Background: Talaat Moustafa Group is currently working on a USD 10 bn project in Iraq, two mixed-usedevelopments in Oman totaling USD 3.9 bn, and its USD 17.3 bn Benan City project in Saudi Arabia that is already under construction. Palm Hills also moved into Saudi Arabia, partnering with Dallah Real Estate last year to develop urban projects and 15 international schools in the kingdom, and also began working on expanding to the UAE through the establishment of a subsidiary and wholly owned limited liability company in Abu Dhabi earlier this year.

Then there’s the recent revival of the country’s IPO market: Bonyan’s IPO — despite having a muted first day on the EGX — is an encouraging development for equities as a REIT-like company, which is a novelty for the market, Head of Investment at Tycoon Securities Brokerage Doaa Zidan said. Couple Bonyan’s IPO (and the National Printing Company announcing its intention to float this week) with the highly anticipated resumption of the government’s privatization plans and asset sales this fiscal year, and you’ve got a lot more investor appetite being built up. All of this new paper may not itself be pushing up the index, but it is likely attracting a new segment of investors, which is driving up liquidity and turnover, Arabeya Online Securities Brokerage’s High Net Worth Client Department Head Sameh Gharib said.

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5

Economy

Egypt’s current account deficit narrows to USD 13.2 bn in 9M 2024-25

Egypt’s current account deficit narrowed to USD 13.2 bn in the first nine months of FY 2024-25, down from USD 17.1 bn recorded in the same period a year earlier, according to central bank figures (pdf). Most of the improvement came in 3Q, when the current account deficit narrowed 69.3% y-o-y on the back of surging remittances, higher tourism revenues, and a jump in non-oil exports.

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

BoP turns to the red: The overall balance of payments recorded a USD 1.9 bn deficit during the nine-month period, compared with a USD 4.1 bn surplus a year earlier. The shift “was mainly attributed to the decline in the net inflows of the capital and financial account, recording USD 7.7 bn compared to unprecedented inflows of USD 20 bn in the corresponding period, which included Ras El Hekma deal.”

DRIVING THE IMPROVEMENT-

#1- Remittances soared: Remittances from Egyptians abroad jumped 82.7% y-o-y to USD 26.4 bn during the nine-month period, up from USD 14.5 bn a year earlier.

#2- Tourism revenues continued to climb, rising 15.4% y-o-y to USD 12.5 bn, supported by a pickup in tourist nights to 134.3 mn from 116.4 mn.

#3- Investment income deficit eased: The investment income deficit narrowed 13.4% y-o-y to USD 12.2 bn, as investment income payments fell 6.9% to USD 14.1 bn and receipts jumped 74.0% to USD 1.9 bn.

DRAGGING THE BALANCE-

#1- Non-oil trade deficit widened to USD 28 bn, up from USD 23.7 bn in 9M FY 2023-2024, due to increased spending on wheat, soybeans, spare parts for cars and tractors, maize, and raw tobacco. Imports jumped to USD 53.6 bn and the rise in exports wasn’t not enough to help offset the increase.Non-oil exports rose 31.3% y-o-y to USD 25.6 bn, up from USD 19.5 bn, driven by a jump in gold, clothing, fruit, cables, and aluminum exports.

#2- Oil trade deficit doubled: The oil trade deficit expanded to USD 10.3 bn from USD 5.1 bn a year earlier, as oil imports rose to USD 14.5 bn on the back of higher gas, oil products, and crude imports. Meanwhile, oil exports inched down to USD 4.2 bn from USD 4.6 bn due to falling crude and gas shipments, partially offset by a rise in product exports.

#3- Suez Canal revenues plummeted: Suez Canal receipts fell 54.1% y-o-y to USD 2.6 bn during the first nine months of the last fiscal year, with net tonnage down 61.9% and vessel transits falling 44.8% amid continued Red Sea disruptions.

#4- FDI inflows cooled off: Net FDI into Egypt fell to USD 9.8 bn from USD 23.7 bn, when inflows were inflated by the Ras El Hekma agreement. Non-oil FDI inflows came in at USD 9.1 bn, while oil FDI recorded a net inflow of USD 669.6 mn after a net outflow a year earlier.

#5- Portfolio inflows dropped: Portfolio investment in Egypt registered a net inflow of USD 2.1 bn during the period, down from USD 14.6 bn in 9M 23-24.

#6- Debt repayments weighed on the balance: Egypt recorded a net repayment of USD 2.6 bn on medium- and long-term loans during the period between July 2024 and March 2025, compared to USD 1.9 bn a year earlier.

REMEMBER- Egypt’s current account deficit widened to USD 11.1 bn in 1H FY 2024-2025, driven by a rise in the trade deficit and a drop in Suez Canal revenues. The BoP was also in deficit during that period, recording USD 502.6 mn.

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6

A MESSAGE FROM VISA

Personal AI agents will soon be able to help you plan, book and pay for everything at the click of a button

What is agentic commerce? It’s e-commerce’s next big technological leap where AI agents act autonomously on behalf of consumers. Instead of manually browsing websites and making purchases, AI agents can proactively manage these processes based on user preferences and defined parameters. These intelligent digital assistants can search, recommend, and transact on your behalf.

“Search and recommend” commerce conversations with generative AI are already prevalent and yielding surprisingly good results, but this is different. Imagine a hyper-personalized assistant that has access to your purchase history and knows everything about you right down to your shoe size, fitness routine, favorite foods, and preferred vacations spots. If you’re going on a beach vacation for example, your agent can do everything for you short of packing, including ordering the sunscreen.

But for agentic commerce to work and make a real difference in the world, we need the right payment capabilities. They must be on a network that provides safety, security, reliability, fraud protection, token services, and dispute protections.

This is what Visa does best, bringing unmatched infrastructure, capabilities, and services delivered through APIs to the entire world. That powerful combination is called Visa as a Service.

Enter Visa Intelligent Commerce, a suite of tools designed to enable secure, agent-led commerce. These include tokenization, transaction controls, and advanced authentication features to ensure that every AI-powered transaction is both seamless and secure. Consumers stay in control, with visibility into and authority over agent actions involving payments.

Visa Intelligent Commerce is now live in sandbox, and we’re inviting our clients and partners to begin testing today, with a planned rollout for 2026.

Curious to see a glimpse of the future of payments? Watch the Visa Intelligent Commerceproduct drophere.

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7

Investment Watch

Egypt’s Qantara West to host three new Chinese textile and garment factories worth USD 52.6 mn

Qantara West Industrial Zone will house three new Chinese textile and ready-made garment factories worth a combined USD 52.6 mn, according to a Suez Canal Economic Zone (SCZone) statement. The contracts were signed in Nanjing, Jiangsu Province, during the SCZone’s first international promotional roadshow for FY 2025-2026.

Who’s building what?

  • Changzhou East Noah Printing and Dyeing will invest USD 20 mn in a vertically integrated textile factory. The facility will produce home textiles including blankets, bedding sets, and quilts with an annual capacity of 8 mn pieces. Around 90% of output will be exported, and the factory is expected to create 1k direct jobs.
  • Changzhou Golden Spring Textile will pump USD 24 mn into a factory for luxury fabrics and home furnishings. The plant will have an annual capacity of 15.8k tons of fabric and 2 mn finished units, 90% of which will be exported to MENA, Europe, and the Americas. The remaining 10% will serve the local market. The project is also expected to create 1k jobs.
  • Jiangsu Sainty Corporation, a subsidiary of Soho Holdings, will set up a USD 8.6 mn ready-made garments factory. The facility will be 100% export-oriented and create 1.5k jobs.

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

The SCZone has carved out a dedicated space for textile projects in Qantara West, with SCZone head Walid Gamal El Din saying the sector is a top priority for localization thanks to its ability to create jobs and connect with supporting industries.

Qantara West has become a hub for Chinese investment, now hosting 18 Chinese-led projects out of 28 total. The 28 projects the zone hosts have a combined investment of USD 734.1 mn and will generate more than 38.4k jobs. The SCZone as a whole attracted more than USD 4 bn in Chinese investments over the past three years.

More in the pipeline: The SCZone is looking to drum up more Chinese investment. Talks are ongoing with Crystal International Group, which is eyeing a USD 250-300 mn textile factory in Qantara West. Officials are also in discussions with EV giant BYD to potentially set up operations within the zone.

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8

Startup watch

Egyptian fintech Flend raises USD 3 mn seed round to fund national expansion

Flend’s mission to expand SME financing in Egypt is getting a USD 3 mn boost, which the company raised in a blended financing round of equity and debt, the homegrown startup said in a statement (pdf). The equity round was led by fintech-focused accelerator Egypt Ventures, with participation from Camel Ventures, Banque Misr, Riyadh’s Sukna Ventures, Abu Dhabi’s Plus VC, and others. Meanwhile, debt was provided by the Micro, Small, and Medium Enterprise Development Agency and local banking partners.

(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 fresh capital will be deployed to expand Flend’s “embedded financing through partnerships with leading digital platforms serving SMEs,” according to the statement. The funds will also go toward hiring a larger team and deepening its “proprietary tech infrastructure to serve Egypt’s USD 50 bn SME financing gap.”

Flend? Flend is the country’s first Financial Regulatory Authority-regulated SME financingplatform, which offers “short-term working capital through a fully digital process, from onboarding and credit scoring to disbursement and collection,” according to the statement. “By embedding financing at the point of commerce, Flend improves reach, reduces acquisition costs, and leverages richer data for better credit decisions.”

What they said: “We are thrilled to partner with Flend and its outstanding team. Across sectors, access to capital for small and medium enterprises remains a persistent challenge. Flend’s mission to digitally transform SME financing in Egypt to make access to finance easier, faster, and more inclusive will be critical to unlocking value across industries,” said Egypt Ventures CEO Abdelrahman Mansour.

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9

Also on our Radar

A new Egyptian-Saudi EGP 70 bn real estate project

REAL ESTATE-

Paragon, Adeer to develop EGP 70 bn mixed-use development in New Cairo: Local property developer Paragon Developments and Saudi Arabia’s Adeer International — a subsidiary of Sumou Holding — have launched a joint development entity, which will work with Midar to develop a EGP 70 bn mixed-use project in New Cairo’s Mostakbal City, according to a press release(pdf). The 500k sqm development will feature commercial, administrative, and hospitality components, and is being positioned as a smart, sustainable urban hub.

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

More on Somou’s first real estate investment fund in Egypt: Sumou Holding is looking to launch a USD 1 bn real estate fund in Egypt by late 2025 or early 2026, Chairman Ayedh Al Qahtani told Al Arabiya adding more color to comments he made to Prime Minister Moustafa Madbouly earlier this week. The company has been in talks with the EGX for nearly two years on regulatory changes that would make it easier for foreign and local developers to establish such funds. Al Qahtani expects Saudi investors to make up 30-40% of the fund’s investor base, with the rest split between Egyptians and other foreign players.

INVESTMENT-

Swiss, French players eye therapeutic nutrition manufacturing in Egypt: The Health Ministry is in talks with Switzerland-based clinical nutrition firm Medifood and French infant baby formula maker Modilac to locally manufacture clinical nutrition products targeting disease-related malnutrition, according to a statement. The proposed joint venture would establish Egyptian-Swiss-French production lines to serve the local and regional markets with clinical nutrition formulas for patients with conditions including kidney diseases, liver diseases, diabetes, and respiratory illnesses.

ENERGY-

Kufpec Egypt, Shell sign off on Mina West gas development: Kuwait Foreign Petroleum Exploration Company’s (Kufpec) Egypt arm and Shell have reached a final investment decision to develop the Mina West gas discovery in the North East El Amriya concession in the Mediterranean, Kuwaiti state news agency KUNA reported.

BACKGROUND- Shell’s two North East El Amriya concession gas fields — Mina West and Khufu — could add a combined 2 tn cubic feet of gas to the country’s reserves.

RENEWABLES-

Infinity partners with Crédit Agricole to finance solar home solutions: Our friends at renewables giant Infinity have partnered with Crédit Agricole Egypt to expand access to residential solar energy through a new financing program, according to a joint press release (pdf). Under the agreement, Infinity customers can now access a solar loan offered by Crédit Agricole with preferential interest rates and repayment terms of up to seven years. The loan covers a range of solar products — including home solar systems — and is designed to remove financial barriers for households for more affordable renewable energy transition.

NBFS-

Nice Deer was given the green light by the Financial Regulatory Authority to become the country’s first NBFI providing factoring services for deferred medical ins. claims, the local insurtech startup said in a statement. The platform seeks to convert delayed ins. receivables into immediate payments for medical service providers, helping address liquidity issues in the healthcare system.

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10

PLANET FINANCE

Trump’s tariff blitz could choke China’s alternative exporting routes

The Trump administration is intensifying efforts to undercut China’s exports by targeting transshipment networks, raising tariffs and tightening supply-chain rules on goods routed through third countries, according to Bloomberg analysts. This strategy risks choking off 70% of China’s exports to the US — equivalent to over 2.1% of China’s GDP.

Since Trump’s first trade war during his first term, China has increasingly leaned on countries like Vietnam, Mexico, and parts of the EU for finishing goods or components bound for the US, in a bid to cushion the blow of US tariffs. China’s share of value-added manufacturing via third countries rose 22% in 2023, up from 14% in 2017, according to Bloomberg Economics.

Away from China or else: Trump’s administration is threatening to slap 25-40% tariffs on goods from Cambodia, Indonesia, Laos, Malaysia, and Thailand to enforce his terms — including curbing China’s exports — in trade negotiations ahead of his 1 August deadline. Vietnam was the first Asian country to yield, accepting an agreement that puts a flat 20% tariff and a 40% levy on transshipped goods, and drawing Beijing’s criticism.

The war extends beyond Asia: The US reached an agreement with the UK in May that included security requirements for steel and pharmaceuticals, terms which were seen as an attempt to push Chinese products out of British supply chains. “Co-operation between states should not be conducted against or to the detriment of the interests of third parties,” China’s foreign ministry told the Financial Times at the time.

Business backpedal: Economists warn that enhanced tariffs or new supply‑chain mandates could significantly disrupt China’s export activity and dent long-term growth. There’s also concern that tighter rules could make international firms more hesitant to rely on Chinese components or production, harming business confidence and investment.

Yet enforcement faces its own challenges. The US definitions of “localized goods” remain vague, and verification protocols for origin remain underdeveloped, Bloomberg analysts said. The success of the policy will hinge on enforcement capabilities and compliance of third-country partners.

ALSO FROM PLANET FINANCE-

  • JP Morgan may soon let clients borrow using cryptocurrencies, a sharp shift from CEO Jamie Dimon’s earlier crypto criticism. While JP Morgan won’t hold crypto directly, it could partner with firms like Coinbase to manage crypto assets. The bank already lends against crypto-linked ETFs, and is expanding to actual tokens in a bid to outpace rivals like Goldman Sachs. (Financial Times)

MARKETS THIS MORNING-

Asian markets are in the green, led by Japan’s Nikkei which jumped 2.8% in early trading on news of a trade agreement with the US. Meanwhile, Wall Street futures are showing softer gains after another record closing for the S&P 500.

EGX30

33,803

-1.0% (YTD: +13.7%)

USD (CBE)

Buy 49.15

Sell 49.01

USD (CIB)

Buy 49.02

Sell 49.12

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

10,843

-1.3% (YTD: -9.9%)

ADX

10,179

-0.6% (YTD: +8.1%)

DFM

6,025

-0.3% (YTD: +16.8%)

S&P 500

6,310

+0.1% (YTD: +7.3%)

FTSE 100

9,024

+0.1% (YTD: +10.4%)

Euro Stoxx 50

5,290

-1.0% (YTD: +8.1%)

Brent crude

USD 68.74

-0.7%

Natural gas (Nymex)

USD 3.26

-1.9%

Gold

USD 3,443

+1.1%

BTC

USD 119,639

+2.1% (YTD: +27.9%)

S&P Egypt Sovereign Bond Index

882.41

+0.1% (YTD: +13.5%)

S&P MENA Bond & Sukuk

146.28

+0.4% (YTD: +4.5%)

VIX (Volatility Index)

16.50

-0.9% (YTD: -4.9%)

THE CLOSING BELL-

The EGX30 fell 1.0% at yesterday’s close on turnover of EGP 4.1 bn (18.4% above the 90-day average). Local investors were the sole net sellers. The index is up 13.7% YTD.

In the green: Edita (+2.7%), Orascom Construction (+0.5%), and Qalaa Holdings (+0.3%).

In the red: Madinet Masr (-2.7%), GB Corp (-2.5%), and Juhayna (-2.4%).

CORPORATE ACTIONS-

#1- Macro Group’s board approved raising its authorized capital 12x to EGP 6.8 bn, up from EGP 575.0 mn, and its issued capital to EGP 684.2 mn, up from EGP 114.0 mn, according to an EGX disclosure (pdf). The EGP 570 mn increase will be funded in banknotes through a rights issue, with 2.9 bn new shares offered to existing shareholders at a par value of EGP 0.20 per share.

#2- Edita Food Industries’ board approved a plan to repurchase 14 mn shares — equivalent to 1% of the company's total outstanding shares — as treasury shares through open market transactions over a one-month period, according to an EGX disclosure (pdf). The transaction will be funded through the company’s own resources, with Al Ahly Pharos Securities appointed as a broker to execute the transaction.

#3- Arabian Cement’s board signed off on a plan to buy back up to 15.1 mn shares — equivalent to 4% of its total issued capital — as treasury shares via open-market transactions, according to an EGX disclosure (pdf).

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Our weekly deep-dive into infrastructure in Egypt.

Published every Wednesday in EnterpriseAM.

Read Hardhat
11

HARDHAT

Egyptian companies are playing an increasingly important role in Africa’s USD 170 bn a year infrastructure push

Infrastructure is the backbone of every successful economy, but it certainly doesn’t come cheap. Africa needs anywhere between USD 130-170 bn a year in infrastructure financing to meet the African Development Bank’s (AfDB) targets, the lender said in a recent report (pdf). To develop all of these transport, utilities, and energy projects across the continent, the wider African private and public sector has been increasingly looking toward Egyptian firms to design, build, and even manage many of these projects.

Despite an abundance of ambition, the continent faces a USD 96 bn financing gap, which the report attributes to a shift of fiscal priorities away from long-term development spending that started with Covid-19. The AfDB even thinks that around 40% of productivity rate declines in African nations can be “directly attributed to inadequate infrastructure,” taking off a sizable 2 percentage points in annual GDP growth on average per nation.

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

But the AfDB thinks the tide may be turning, as African nations prioritize “infrastructure not just as a development tool but as a lever for economic competitiveness and a geopolitical tool for resilience and realignment.” Alongside progress to bring down tariffs between African nations spearheaded by the African Continental Free Trade Area, infrastructure is also a hugely important non-tariff barrier that the continent is looking to address. “Efficient, interconnected infrastructure, including cross-border energy networks, railways, ports, and trade corridors, is essential to unlocking intra-African trade, reducing logistics costs, and enabling Africa’s structural transformation,” according to the report.

Poor infrastructure is a big contributor to high prices — and with it low levels of intra-Africa trade. A big contributing factor to why products from other African nations are either not so common on store shelves or are unusually expensive is that 29% of the cost of products traded between African nations is due to road transport costs, according to the AfDB.

As things stand, just 16 of the 52 African countries source more than 0.5% of their intermediate goods from within Africa. Despite all sitting on the same continent, imports from outside Africa are often cheaper — a fact that the African Union, AfDB, and many others are trying to change.

It’s not just poor roads making African products expensive; poor energy infrastructure is also a bugbear, especially with over half of Africa lacking reliable electricity access. Unreliable or insufficient energy makes manufacturing a much less attractive option, especially if you’re a foreign investor. Agriculture is also particularly affected by energy supply shortfalls, which the bank says is a big contributing factor to why only 10% of arable land in Africa is cultivated and 6% irrigated.

Expanding water access and sanitation takes up the lion’s share of projected financing needs, with the continent needing USD 56-66 bn a year to meet its target of complete water access in both urban and rural areas.

Both state-owned and private sector players have been active on this front on the continent, including big-ticket projects like Orascom Construction and its Besix arm’s public-private partnership to build the USD 257 bn Hamma Seawater Desalination Plant in Algeria. State-owned Arab Contractors has been the most prominent Egyptian company working on water-related projects in Africa, having signed contracts for six wastewater treatment plants in the Ivory Coast and completing a drinking water purification station in Equatorial Guinea.

Energy infrastructure needs are expected to be pretty costly, amounting to anywhere between USD 25-50 bn a year for the bank to reach complete electrification of cities and 95% coverage for rural areas.

Once again, private and public sector players from home have been playing an important role in both big and small projects. On the large side is the USD 2.9 bn Julius Nyerere Hydropower Plant and Dam in Tanzania, which was designed and constructed by a joint venture between the Arab Contractors and the private sector’s Elsewedy Electric, using the help of 1k Egyptian workers. Elsewedy Electric has a presence in Algeria, Ethiopia, Nigeria, Zambia, Morocco, Burkina Faso, Uganda, Kenya, Libya, the Ivory Coast, and Madagascar for a range of electricity and transmission projects. Orascom Construction subsidiary Besix set up a hydroelectric power project on Cameroon's Sanaga River in 2023, which covers some 30% of the country’s energy needs.

Other African countries are looking toward Egypt for help with solar projects in particular, with potentially over USD 5 bn worth of projects lined up for Egyptian companies on the continent over the next five years, informed sources have previously told EnterpriseAM.

Planes, trains, and vehicles — along with everything else we need to move goods and people — also come with a hefty price tag, with a lower estimate of USD 35 bn and higher estimate of USD 47 bn.

Again, Arab Contractors has an outsized presence with logistics infrastructure, with several projects by the state-owned company spanning the entire continent. The company has numerous completed or in-the-works road projects in several African countries, including the 1.7k km road connecting Egypt, Libya, and Chad.

Egypt is also setting up a logistics zone in Rwanda in a bid to help facilitate Egyptian companies’ access to the Rwandan market, which will be accommodated by a logistics corridor connecting Tanzania and Rwanda in a bid to facilitate the flow of Egyptian exports to Africa. Egypt and Sudan also inked a contract to establish a logistics zone on the border crossing between them last month, and there’s been talk of a similar project with Libya for some time. Local players have also been working on several port development projects, including the Arab Contractors’ EUR 60 mn Comoros port project.

Your top infrastructure stories for the week:

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CALENDAR

JULY

24 July (Thursday): Holiday in observance of the 23 July Revolution.

End-July 2025: Egypt and Jordan to connect fifth FSRU ‘Energos Force’ to Arab Gas Pipeline via Aqaba port.

Also happening this month:

  • The first operational trial of Egypt-KSA electricity interconnection line
  • China’s State Grid aims to finalize contracts for two solar projects

AUGUST

3-5 August (Sunday-Tuesday): Edugate Cairo, Royal Maxim Palace Kempinski Hotel in New Cairo

6 August (Wednesday): Egugate Alexandria, Hilton Green Plaza Hotel, Alexandria

7 August (Thursday): Finance Ministry to begin disbursement of 50% of exporters’ pre-June 2024 dues over a four-year plan.

28 August (Thursday): Monetary Policy Committee meeting.

Mid-August: Launch of electronic platform to register Old Rent Law tenants.

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

Late-August: Deadline for cement factories to restart production.

SEPTEMBER

8-11 September (Monday-Thursday): EFG Hermes London Conference takes place in the British capital.

15 September (Monday): IMF to hold its combined fifth and sixth reviews of Egypt’s USD 8 bn EFF arrangement.

24-27 September (Wednesday-Saturday): Cityscape Egypt 2025, Egypt International Exhibition Center.

The Egyptian-Moroccan Business Council to send a delegation of 23 local companies to Rabat.

The Engineering Export Council of Egypt will ship a commercial delegation to Russia to ramp up exports to European markets.

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

7 October (Tuesday): The 2025 EnterpriseAM Egypt Forum.

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

23-25 October (Thursday-Saturday): Stone Africa Expo, Cairo International Conference Center.

October: The third iteration of the Export Smart Exhibition and Conference.

NOVEMBER

16-19 November: Cairo ICT 2025, Egypt International Exhibition Center

20 November (Thursday): Monetary Policy Committee meeting.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

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

25 December: (Thursday): Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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

3Q 2025: Polaris Parks to finalize contracts for two new industrial zones in the new capital and Sadat City.

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

2H 2025: Potential visit by Chinese President Xi Jinping to Egypt

4Q 2025: The beginning of construction works on China’s State Grid two solar projects.

4Q 2025: GB Auto starts assembling one of China’s Great Wall Motor models in 4Q 2025.

4Q 2025-1Q 2026: Kasrawy Group to launch first Avatr EV models in Egypt.

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2025: Release of the government’s Startup Charter document.

Before 2025-end: The government will launch two ro-ro shipping lines with Saudi Arabia and Turkey.

2026

Early 2026: Passenger operations on the New Administrative Capital–Nasr City monorail scheduled to begin.

1Q 2026: Trial operations for the Ain Sokhna–Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

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

15 March 2026: IMF to hold its seventh review of Egypt’s USD 8 bn EFF arrangement.

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

15 September 2026: IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

2H 2026: Operations at Deli Glass Co’s new USD 70 mn glassware factory kick off.

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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