World leaders to land in Sharm ahead of Gaza summit

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What We're Tracking Today

All eyes on Sharm El Sheikh ahead of international summit on Gaza

Good morning, all. We hope the long weekend left you refreshed and ready to tackle another work week. We kick off the week with a macro-heavy issue, diving into the latest inflation and current account figures and the S&P upgrading our credit rating for the first time in years.

We have a busy week ahead, with the world’s eyes on Sharm El Sheikh as it prepares to host world leaders for the international summit on Gaza, where the ceasefire agreement will be finalized.

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 28°C and a low of 20°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 27°C and a low of 20°C.

WATCH THIS SPACE-

#1- COMESA rolls out digital payments system: The Common Market for Eastern and Southern Africa (COMESA) has introduced a new digital payments platform that allows businesses across its 21 member states — including Egypt, Kenya, and Ethiopia — to settle trade transactions in local currencies, it said in a statement. The system aims to reduce reliance on hard currencies such as the USD, lowering trade costs and simplifying cross-border payments.

The new Digital Retail Payments Platform is being piloted between Malawi and Zambia in partnership with two digital financial service providers and a forex company. Kenya’s Trade Minister Lee Kinyanjui said the system will make regional trade more accessible for small and medium enterprises, which account for 80% of businesses and 60% of jobs in COMESA countries. The platform targets transaction fees below 3% of trade value.

#2- Fresh incentives for cement producers: The government is offering cement producers a one-time incentive this month to help increase supply in the local market, according to an Industry Ministry statement. Factories that increase their output to feed the domestic market this month will receive temporary discounts on fees related to amending production capacity in their operating licenses. This aims to encourage higher production, stabilize prices, and ensure enough supply in the local market.

ICYMI- The government in July gave cement factories one month to restart idle production lines as part of a broader push to stabilize prices and meet local demand.

#3- Air taxis are making their debut in Egypt: Abu Dhabi Aviation has launched Egypt’s first air taxi service in partnership with the Egyptian Air Force, with investments worth EGP 5 bn, Asharq Business reports. The project currently operates four aircraft, with plans to expand to eight next month. Fares start at USD 200 for short trips within Cairo and reach USD 1.5k for longer routes to Sharm El Sheikh, Hurghada, and El Gouna. The service targets tourists and business travelers, with future plans to expand into air medical transport and express cargo.

#4- The Central Bank of Egypt (CBE) launched the Banking Reform and Development Fund, which will work to “enhance the efficiency, infrastructure, and competitiveness of the Egyptian banking sector,” Governor Hassan Abdalla said in a statement shared by the bank.

The fund will be able to establish or invest in companies to advance its goals and cooperate with partners on a national and international level. The fund will also provide technical and financial support for initiatives to upgrade banking infrastructure, bolster cybersecurity, promote fintech innovation, and train human capital in line with global best practices.

The fund’s 11-member board will be headed by Abdalla and include CBE Monetary Policy Deputy Governor Rami Aboulnaga and CBE Banking Stability Deputy Governor Tarek Elkholy. The board also includes five bank CEOs elected by the Federation of Egyptian Banks, alongside three independent members with recognized expertise — Vodafone Egypt CEO Mohamed Abdallah, Bonyan CEO Tarek Abdel Rahman, and Sukari Gold Mines Managing Director Hoda Mansour.

HAPPENING TODAY-

Thirsty for innovative solutions for climate resilience and water sustainability? Cairo Water Week is here. The annual event kicks off today at New Cairo’s Triumph Luxury Hotel and wraps up on Thursday. Expect a packed schedule featuring workshops, exhibitions, and sessions around adaptation to climate change, water resource management, nature-based solutions, and sustainable infrastructure. The event will also host competitions for young inventors and showcase new technologies aimed at advancing the water sector in Egypt and the region.

CIRCLE YOUR CALENDAR-

#1- BEBA will host Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib later this month for a working early dinner, set for 28 October at Sheraton Cairo Hotel. The conversation with the two senior members of the cabinet’s economic team will be followed by a Q&A session.

#2- The Egypt–EU Summit will be held on 22 October in Brussels to advance the strategic and comprehensive partnership between both sides, Planning Minister Rania Al Mashat said. The summit will address economic cooperation, investment, and sustainable development.

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

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

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THE BIG STORY ABROAD-

We’ve got a mixed bag of headlines leading the front pages this morning. Among the stories getting plenty of ink:

#1- US President Donald Trump is threatening to slap a 100% tariff on all Chinese imports starting 1 November or earlier, after accusing Beijing of “very hostile” moves to curb exports of rare earths essential to tech manufacturing. The remarks sparked renewed fears of a trade war between the world’s two largest economies.Beijing’s decision to expand export controls on rare earths — key inputs for electric vehicles, electronics, and defense equipment — appears to have triggered the latest escalation. The new rules require foreign firms to obtain approval before exporting products containing the materials, effectively tightening China’s grip on the supply chain. (Financial Times | Guardian | Reuters)

#2- At least 60 people were killed in drone and artillery strikes by the Rapid Support Forces on a displacement shelter in Sudan’s Al Fashir between Friday and Saturday, CNN reports. The city, the army’s last stronghold in Darfur, has been under siege for months, with residents facing severe hunger and disease.

#3- Firefights broke out along the Pakistan-Afghanistan border late Saturday after the Afghan Taliban attacked Pakistani posts, Reuters reports.

As the Sahel summer winds down, the Red Sea is just getting started. Say hello to Somabay, a year-round seaside escape where tranquil waters, world-class diving, kitesurfing, golf, and wellness come together in one breathtaking destination. This September, it also hosts the ITF World Tennis Tour, bringing world-class tennis to the coast. Somabay is the perfect next stop, a place where the season never ends, and every day feels like the first day of summer.

Trump to touch down in Sharm this week to finalize Gaza ceasefire agreement

World leaders will land in Sharm El Sheikh over the coming hours ahead of an international summit to finalize the Gaza ceasefire agreement, according to an Ittihadiya statement. The summit will take place tomorrow with the aim of ending the war in Gaza and setting the stage for a new era of regional security and stability.

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

A star-studded line up: The summit will be attended by over 20 world leaders, including US President Donald Trump, French President Emmanuel Macron, and UK Prime Minister Keir Starmer. Leaders or foreign ministers from Germany, Italy, Qatar, the UAE, Jordan, Turkey, Saudi Arabia, Pakistan, and Indonesia will also be in attendance, Axios reports.

The summit will be the final step after days of negotiations, which ended with Israel and Hamas reaching an agreement to establish a ceasefire and end the war in Gaza. President Abdel Fattah El Sisi described Thursday’s ceasefire and hostage agreement as a “historic moment,” which not only closes “the chapter of war, but also opens the door of hope for the peoples of the region,” according to an Ittihadiya statement. The agreement in Sharm El Sheikh covers the first phase of a larger agreement, which will see a ceasefire, the partial withdrawal of Israeli troops, and the exchange of Israeli and Palestinian hostages.

El Sisi told Trump that he deserves to win the Nobel Peace Prize for his role in the agreement, according to a separate Ittihadiya statement. The call between the two heads of states also saw El Sisi stress the need to implement all of the agreement’s phases and the importance that Trump will play in making this happen.

El Sisi also met US Special Envoy to the Middle East Steve Witkoff and Senior Advisor to the President Jared Kushner in person, where they thanked each other for their roles played in the agreement, with El Sisi reiterating Egypt’s intention to make sure the agreement is implemented in full with “sincerity and responsibility.”

The need to follow through on all stages of the agreement was also emphasized by El Sisi in a call with UN Secretary-General Antonio Guterres on Friday, along with the need to reach a consensus on the following phases of the agreement to come, according to an Ittihadiya statement. Guterres also argued for the deployment of international forces in Gaza, the need to immediately begin reconstruction efforts, and the need for Egypt to continue playing an important role in providing humanitarian aid to the enclave.

Meanwhile, tragedy strikes ahead of the summit: Three Qatari diplomats were killed and two others were injured in a car crash in Sharm El Sheikh, Reuters reports. It remains unclear whether the diplomats were part of Qatar’s negotiating team that helped broker the ceasefire agreement last week.

S&P upgrades Egypt’s credit rating for first time in seven years

S&P Global Ratings upgraded Egypt’s long-term sovereign credit rating to B from B-, the first upgrade since 2018, while affirming its short-term rating at B, according to a report from the rating agency seen by EnterpriseAM. The decision reflects the “significant improvement in the Egyptian economy in light of structural reforms, the liberalization of the exchange rate, the increase in foreign direct investment, and the improvement of indicators,” Finance Minister Ahmed Kouchouk told EnterpriseAM.

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

The agency points to international confidence in the country’s reform agenda, supporting its rationale by noting that the float of the EGP led to “GDP growth rebounding sharply” in the previous fiscal year. The rating agency adds that the wider reform agenda has also increased tourism revenues and remittances and improved fiscal metrics.

The post-float uptick in FDI along with IMF and other donor support have helped ease FX reserve and liquidity concerns, no more so than with the landmark USD 35 bn Ras El Hekma agreement. S&P sees net flows offsetting current account deficits until the end of the fiscal year 2027-2028 and usable reserves hitting USD 42 bn in the same period. Net external debt is seen falling to an average of 84% of current account receipts in the same time frame, down from an average of 134% in the four-year period ending in FY 2023-2024.

Looking ahead, commitment to a flexible currency and the IMF’s role as a “policy anchor” will lead to more growth and better fiscal indicators until the fiscal year ending 2028, even with “global tariff-related volatility and regional geopolitical risks,” according to S&P.

The rating agency also posted a stable outlook, citing “improving growth prospects and

improving balance of payments trends” that have to be balanced against sizable deficits and debts.

S&P could be persuaded to upgrade its outlook if there’s a quicker-than-expected fall in net government and external debt, “perhaps via an accelerated pace of deleveraging or higher FDI supported by the planned sale of state assets. We could also raise the rating should policies to diversify the economy and open up key sectors to foreign investment benefit the Egyptian economy, including the quality of external financing.” However, the agency warns that it could move to downgrade its outlook if FX shortages return and the government diverts from its reform agenda. Negative rating actions could also be prompted by several other factors. These include Egypt undertaking a debt exchange that S&P views as distressed, or tariff-related and geopolitical disruptions that affect external market access and the cost of debt.

Fitch Ratings also revisited its position on our sovereign debt over the weekend, reaffirming its B rating and stable outlook. Fitched noted the country’s relatively large economy, GDP potential, and continued support from international partners, but it warned of weak public finances and elevated debt service costs.

The Finance Ministry was keen to say that it has no plans on backtracking on reform progress, with the government committed to “enhancing investor confidence, expanding the tax base, supporting fiscal discipline, reducing debt ratios, boosting spending on social protection and human capital, maintaining low inflation rates, and achieving comprehensive and sustainable growth for the Egyptian people, led by an active and competitive private sector,” Kouchouk told EnterpriseAM.

Egypt’s inflation cools for fourth straight month in September to 11.7%

Annual headline urban inflation fell by 0.3 percentage points in September to end the month at 11.7%, supported by a drop in food and beverage price inflation, according to data from state statistics agency Capmas seen by EnterpriseAM. The fall marks the fourth consecutive month of easing price inflation and the lowest annual figure since March 2022.

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

A fall’s a fall, but analysts had been expecting inflation to drop much further, Al Ahly Pharos’ Hany Genena told EnterpriseAM. “September’s inflation came higher than our estimate of 10.9% y-o-y and 1.1% m-o-m,” HC Securities' Heba Mounir similarly told us. The reading is also up 0.7 percentage points from a Reuters poll of 15 analysts that had a median projection of 11.0% y-o-y.

Driving the decline were easing food and beverages prices — the largest component of the basket of goods and services used to calculate headline inflation — with food prices increasing 1.4% y-o-y during the month, down from 2.1% the previous month. This was backed by a 0.6% y-o-y dip in meat prices and a 20.9% y-o-y fall in vegetable prices. September’s reading was also supported by a favorable base effect and the 1.5% m-o-m EGP appreciation against the USD, Mounir added.

But it’s a different story on a monthly basis, with urban inflation accelerating for the second straight month. Prices increased m-o-m by 1.8%, fueled by an uptick in food and beverage price inflation, triggered mainly by a 12.3% m-o-m increase in vegetable prices, which Mounir attributed to the high summer temperatures.

What about core inflation? Annual core inflation — which excludes volatile items like food and fuel — inched up 0.6 percentage points from August to 11.3% y-o-y, according to data from the Central Bank of Egypt. On a monthly basis, core inflation came in at 1.5%, compared to 0.1% a month earlier.

The country’s disinflation streak is expected to soon come to a halt — at least for a while. Upcoming inflation data for October, set to be released next month, is expected to show an increase in inflationary pressures stemming from an expected fuel price hike to fully liberalize pricing and recover production costs.

The move could push the annual rate up to 14% and the monthly rate to 3.5%, Genena told us. However, the jump is no reason to be concerned, cautions Genena, who points to the large gap between interest rates and inflation to absorb future shocks. Others like EG Bank Board Member Mohamed Abdel Aal are more optimistic, seeing headline inflation stabilizing at around 12% y-o-y on average and core inflation at 10% y-o-y on average. Abdel Aal points to an expected cushioning of fuel price hikes by a dip in the country's import bill as the EGP strengthens against the USD.

Despite inflation easing less than expected, most analysts still seem to be forecasting another 100 bps cut by year-end, including Thndr Securities Brokerage’s Esraa Ahmed, who sees the central bank as having “decent room” to make a move. Genena likewise sees a 100 bps cut by the end of the year, following a likely hold in November to assess the impact of fuel price hikes.

Egypt to revisit planned fuel price hikes following Gaza ceasefire

The government is reconsidering a planned hike in fuel prices following the Gaza ceasefire agreement, a government source told EnterpriseAM. The move comes amid expectations that global oil prices will ease, petroleum import costs will decline, and the EGP will strengthen all on the back of the agreement.

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

Fuel prices are already dropping: Oil prices fell over 1.5% at the close of Thursday’s trading session, following the signing of the ceasefire agreement between Israel and Hamas. Brent crude futures dropped USD 1.03, or 1.55%, to settle at USD 65.22 per barrel, while West Texas Intermediate futures slipped USD 1.04, or 1.66%, to sit at USD 61.51 per barrel.

The government bases domestic fuel pricing on three key metrics — global oil prices, the exchange rate, and supply and demand — all of which could shift following the ceasefire, the source said. The expected return of traffic to the Suez Canal will also help boost the EGP and FX revenues, improving Egypt’s position and reducing fuel import costs.

Local consumption is also falling, with reserves enough to cover needs until the end of the year. A government source told EnterpriseAM last week that gas import targets for 4Q were cut by around half due to a dip in demand.

Two factors could still change the outlook for fuel pricing. The first is Egypt’s upcoming talks with the IMF in Washington during the Fund’s annual meetings later this month. The second is the broader economic impact of the Gaza ceasefire, which is expected to improve key economic indicators.

Cost-recovery ratios could also be revised down, giving inflation room to fall and supporting social spending while staying on track with the IMF-backed reform program, the source added.

Egypt’s current account deficit narrows to USD 15.4 bn in FY 2024-25

Egypt’s current account deficit narrowed to USD 15.4 bn in FY 2024-2025, down 25.9% y-o-y from the USD 20.8 bn recorded a year earlier, according to central bank figures (pdf). The deficit shrank on the back of a marked increase in remittances, a rise in 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 slips into deficit: The overall balance of payments recorded a USD 2.1 bn deficit during the fiscal year, compared to a USD 9.7 bn surplus a year earlier. The shift was mainly attributed to a decline in the net inflows of the capital and financial account, which recorded USD 10.2 bn compared to inflows of USD 29.9 bn in the fiscal year 2023-2024, which included USD 35 bn from the Ras El Hekma transaction.

DRIVING THE IMPROVEMENT-

#1- Remittances on the rise: Remittances from Egyptians abroad jumped 66.7% y-o-y to USD 36.5 bn last fiscal year, up from USD 21.9 bn in the fiscal year 2023-2024.

#2- Tourism revenues continued to climb, rising 16.3% y-o-y to USD 16.7 bn, thanks to a pickup in tourist nights to 179.3 mn from 154.1 mn.

#3- The investment income deficit narrowed 9.6% y-o-y to USD 15.8 bn, as investment income payments fell 3.7% to USD 18.7 bn and receipts jumped 50.1% to USD 2.9 bn.

DRAGGING THE BALANCE-

#1- Non-oil trade deficit widened 16.3% y-o-y to USD 37.1 bn due to increased spending on soya beans, wheat, spare parts for cars and tractors, corn, and raw tobacco. Imports jumped 21.9% y-o-y to USD 71.7 bn, and the rise in exports was not enough to help offset the increase. Non-oil exports rose 29.1% y-o-y to USD 34.6 bn, driven by a jump in exports of gold, fruits, and ready-made garments.

#2- Oil trade deficit nearly doubled: The oil trade deficit expanded to USD 13.9 bn from USD 7.6 bn a year earlier, as oil imports rose to USD 19.5 bn on the back of higher gas, oil products, and crude imports. Meanwhile, oil exports inched down by USD 128.2 mn to USD 5.6 bn due to falling crude and gas shipments, partially offset by a rise in product exports.

#3- Suez Canal revenues plunge: Suez Canal receipts fell 45.5% y-o-y to USD 3.6 bn during the fiscal year, with net tonnage down 55.1% and vessel transits falling 38.5% amid continued Red Sea disruptions.

#4- FDI inflows moderate: Net FDI into Egypt fell to USD 12.2 bn last fiscal year from USD 46.1 bn a year earlier, when inflows were inflated by the Ras El Hekma agreement. Non-oil FDI inflows came in at USD 11.6 bn, while oil FDI recorded a net inflow of USD 598.3 mn after a net outflow of USD 351.6 mn a year earlier.

#5- Portfolio inflows weaken: Portfolio investment in Egypt registered a net inflow of USD 1.6 bn during the period, down from USD 14.5 bn in FY 2023-2024.

#6- Higher debt repayments pressure the financial account: Egypt recorded a net repayment of USD 3.5 bn on medium- and long-term loans last fiscal year, compared to a net repayment of USD 2.4 bn a year earlier.

A LOOK AT 4Q-

Our balance of payments recorded a deficit of USD 196 mn in 4Q FY 2024-2025, reversing a USD 5.55 bn surplus during the same period a year earlier, but narrowing from a USD 1.37 bn deficit recorded during 3Q FY 2024-2025, HC Securities’ Heba Mounir told us.

Reuters also picked up the story.

Tax hike on cigarettes coming soon

Your smokes are getting pricier: The Egyptian Tax Authority (ETA) will implement a 12% tax increase on cigarettes starting November, in accordance with the amended VAT law, a government source told EnterpriseAM. This marks the second tax hike on local and imported cigarettes this fiscal year.

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

REMEMBER- VAT amendments were ratified in July, introducing a 12% annual increase for various cigarette categories over the next three years, effective 2 November. The amendments will also impact crude, construction and contracting services, and alcoholic beverages. The amendments will help the government bring in an additional EGP 200 bn in tax revenues.

The upcoming tax increase on local and imported cigarettes will be the second since the fiscal year began in July. Eastern Company and Philip Morris both hiked prices in July, pushing the price per pack to up to EGP 105.

The tax increase will not be applied uniformly across all companies, head of the Federation of Egyptian Industries’ tobacco division Ibrahim Imbaby told EnterpriseAM. He explained that some of Eastern Company's cigarettes are currently priced at EGP 44, which is below the first tax bracket of EGP 48. This allows the company to raise its prices by approximately EGP 4 without moving into a new tax bracket. Imported cigarettes, however, are more likely to be affected as they fall into the higher tax brackets.

What does this mean for the state's coffers? The ETA is looking to collect an additional EGP 8 bn in tax revenue following this new increase in VAT, our source noted. The recent tax amendments are projected to raise total tax revenues from cigarettes to EGP 111 bn this fiscal year, up from EGP 93.8 bn in the last fiscal year, according to a government document seen by EnterpriseAM.

These measures are part of the IMF-backed reforms under our USD 8 bn loan program, a source previously told EnterpriseAM.

The tax increase is expected to fuel inflation during 4Q 2025, which is widely expected to see elevated price pressure thanks to the last round of fuel subsidy cuts.

Saudi Bugshan is eyeing Egypt’s auto market

AUTOMOTIVE-

Saudi conglomerate Bugshan Group is eyeing Egypt’s auto market, as the family-owned company is studying acquiring dealerships that sell and provide after-sales services for Chinese vehicles, Al Mal reports, citing unnamed sources. Bugshan has already held discussions with international car companies about acquiring agency rights in Egypt, but no agreements have been reached. The company may collaborate with local partners to accelerate the project, the sources added.

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

Bugshan also likes the idea of local assembly and manufacturing, pointing to the government’s incentive program for localizing the auto industry, according to the outlet’s sources.

TELECOMS-

Vodafone Egypt pilots world’s first 50Gbps microwave link: Vodafone Egypt has carried out the world’s first test of a commercial 50Gbps microwave link in partnership with Huawei Egypt and under the supervision of the National Telecom Regulatory Authority’s (NTRA), according to a company statement. The test used the E-Band (80 GHz) spectrum and Full-Duplex technology, which allows data to be sent and received at the same time, improving speed and efficiency. The new link delivers high-capacity data transmission that can support faster mobile and 5G services.

What they said: “We are thrilled to be the first to test this advanced global technology for data transmission in Egypt. This achievement reflects our firm commitment to leading the telecommunications market in Egypt and driving technological progress that positions the country as a regional center for innovation in the Middle East and Africa. It also opens new horizons for internet services, enabling reduced operational costs and unmatched data transfer speeds, setting new standards of internet capacity that benefit individuals and enterprises alike,” Vodafone Egypt’s Chief Technology Officer Catalin Buliga said.

DEBT WATCH-

Real estate developer Tameer secured a EGP 2.1 bn syndicated loan led by Emirates NBD, which will go toward the company’s Azad Views project, according to a statement from the bank seen by EnterpriseAM.

ADVISORS- Emirates NBD acted as the lead arranger, bookrunner, facility agent, and security agent. SAIB and Al Baraka Bank served as co-arrangers and lenders, while the Industrial Development Bank acted as co-arranger and compensation account bank. Law firm Sarie Eldin & Partners provided counsel to the lenders.

Global sukuk issuance hit a record USD 80 bn in 3Q 2025

Global sukuk issuance hit a record in 3Q 2025, defying market volatility and the usual seasonal slump, according to a note by Fitch Ratings’ seen by EnterpriseAM. Core markets — the GCC, Malaysia, Indonesia, Turkey, and Pakistan — issued about USD 80 bn in the quarter, up 22% q-o-q and 89% y-o-y.

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

What’s driving the boom: Lower funding costs and ample GCC liquidity offset tighter shariah compliance rules and regional tensions. The Fed’s September rate cut to 4.25% added momentum, while conventional bond issuance in the same markets fell 17.6% q-o-q.

Sukuk now account for 35% of total debt issuance in core markets, up from 27.5% a year earlier. Outstanding sukuk rose 15.5% y-o-y to USD 1 tn by end-3Q, with 28% denominated in USD. ESG-linked sukuk represented 13% of USD-denominated issues, alongside a rising share of subordinated instruments.

Regional leaders: Malaysia accounts for the largest share of outstanding sukuk issuances with 34%, closely followed by Saudi Arabia with 30%. Outside of the GCC, Indonesia, Malaysia, and Turkey together accounted for 64% of global issuance during the quarter. In the GCC, sukuk now make up 40% of outstanding debt instruments compared to 16% in emerging markets.

Sukuk issuance is on track to surpass 2024 levels, with 2026 prospects described as “promising.” Growth will be supported by refinancing needs, diversification goals, and Islamic-finance reforms. The agency’s base case assumes oil at USD 70 per barrel this year and USD 65 in 2026, though it added that price shocks and new shariah requirements could pose downside risks.

REMEMBER- Proposed reforms to sukuk aim to make them less like conventional interest-bearing debt and more like an asset-backed structure, where sukuk holders would gain full ownership of the underlying assets and expose them to additional risks like defaults. It could also increase costs and red tape for issuers through additional asset transfer and legal documentation.

Credit quality stays strong: The market remains resilient, with no defaults or downgrades among Fitch-rated sukuk in 3Q. About 80% of issues are investment grade, and 88% of issuers carry a stable outlook.

Structural shifts: Qatar Central Bank expanded its Primary Dealer Framework to include ijara sukuk, while Saudi Arabia’s potential inclusion in JPMorgan’s EM bond index could boost SAR-denominated demand. The UAE’s Higher Shariah Authority also issued new guidance on asset-sale rights, prompting issuers to revise documentation. Fitch said the change does not make unsecured sukuk equivalent to secured debt but could affect future rating treatment.

ALSO FROM PLANET FINANCE-

Cryptocurrencies got a hit on Friday after days of BTC reaching its highest peak, as BTC dropped below the USD 113k level, pushed down by US President Donald Trump's announcement he would impose an additional 100% tariff on China and new export limitation on software, Bloomberg reported yesterday. Over USD 19 bn in positions were wiped out, affecting more than 1.6 mn traders. The downturn is seen as “the largest liquidation event in crypto history,” and the total liquidation size might be higher as exchanges don’t report orders in real time, according to data tracker Coinglass.

EGX30	37,377	+0.8% (YTD: +25.7%)
USD (CBE)	Buy 47.49	Sell 47.62
USD (CIB)	Buy 47.51	Sell 47.61
Interest rates (CBE)	21.00% deposit	22.00% lending
Tadawul	11,583	+0.2% (YTD: -3.8%)
ADX	10,114	-0.3% (YTD: +7.4%)
DFM	5,982	+0.4% (YTD: +16.0%)
S&P 500	6,553	-2.7% (YTD: +11.4%)
FTSE 100	9,428	-0.9% (YTD: +15.4%)
Euro Stoxx 50	5,531	-1.7% (YTD: +13.0%)
Brent crude	USD 62.73	-3.8%
Natural gas (Nymex)	USD 3.11	-5.0%
Gold	USD 4,000	+0.7%
BTC	USD 109,639	-1.2% (YTD: +17.3%)
S&P Egypt Sovereign Bond Index	944.36	+0.1% (YTD: +21.5%)
S&P MENA Bond & Sukuk	150.97	+0.2% (YTD: +7.9%)
VIX (Volatility Index)	21.66	+31.8% (YTD: +24.8%)

THE CLOSING BELL-

The EGX30 rose 0.8 % at Wednesday’s close on turnover of EGP 4.4 bn (1.4% below the 90-day average). Regional investors were the sole net sellers. The index is up 25.7% YTD.

In the green: TMG Holdings (+2.8%), Orascom Construction (+2.3%), and EFG Holdings (+2.1%).

In the red: Palm Hills Development (-1.2%), E-finance (-1.2%), and Raya Holdings (-1.0%).

CALENDAR

OCTOBER

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

19-20 October (Sunday-Monday): Egypt to host the fifth edition of the Aswan Forum.

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

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

28 October (Tuesday): BEBA’s working dinner with Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib.

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

October: The tenth session of the Egyptian-Lebanese Joint Higher Committee.

Mid-October: Capmas to publish the findings of its 2023-2024 income and expenditure survey.

NOVEMBER

1 November (Saturday): The official opening of the Grand Egyptian Museum.

16-19 November (Sunday-Wednesday): Cairo ICT 2025, Egypt International Exhibition Center

20 November (Thursday): Monetary Policy Committee meeting.

23-25 November (Sunday-Tuesday): NEBU Expo 2025 gold and jewelry exhibition, Egypt International Exhibitions Center, New Cairo.

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.

4-7 December (Thursday-Sunday): Egy Stitch & Tex Expo 2025, Cairo International Conference Center.

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

December: Germany’s North Rhine-Westphala business delegation to land in Egypt.

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.

10-12 February (Tuesday-Thursday): Gitex Global’s AI Everything Middle East & Africa Summit

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.

https://entlaq.com/events/2

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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