KPMG considers ending 41-year partnership with Hazem Hassan

Monday, 25 May 2026

KPMG considers ending 41-year partnership with Hazem Hassan

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Big Story Today

KPMG is weighing the end of its 41-year partnership with Hazem Hassan as part of a global restructuring.

IPO WATCH

Korra Energi private placement 5.7x covered on EGX.

NBFIS

What’s behind Egypt’s consumer finance crackdown.

WHAT WE’RE TRACKING TODAY

Netherlands-based RMBV looks to establish SPAC in Egypt.

EARNINGS WATCH

Contact Financial and Mopco report their 1Q earnings.

Also on our Radar

B Investments preps El Ezaby pharmacy for EGX debut.

PLANET FINANCE

The Powell playbook ended Friday. The next one hasn’t been written.

BLACKBOARD

Egypt has built a research base that beats most EMs, but our private sector doesn’t know what to do with it.

WHAT WE’RE TRACKING TODAY

PE firm RMBV seeks FRA nod to launch SPAC on the EGX

Good morning, friends, and a happy Eid El Adha in advance. It’s an issue of partnerships, placements, and policy reads as we wrap our last issue before the long holiday.

On deck this morning, we spoke to three sources who tell us KPMG is weighing a restructuring of its Egypt operations. The move would effectively end the firm’s 41-year partnership with local affiliate Hazem Hassan, and the partnership won’t dissolve lightly.

Meanwhile, Korra Energi's private placement closed 5.7x covered yesterday, Prime Holding's Yasser Shahin tells us. The retail tranche ran hot at 10.6x oversubscribed with one session left.

And we go behind the scenes of the CBE’s recent NBFI tightening, speaking to analysts and insiders who see the move as a macroeconomic tool.

** A QUICK PROGRAMMING NOTE- EnterpriseAM will be joining the rest of you in taking time off for Eid El Adha. We will be back in your inboxes next Monday morning at the same time.

***

WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.

***

One more SPAC

Netherlands-based private equity firm RMBV is looking to establish a special purpose acquisition company (SPAC) here at home, submitting a request to the Financial Regulatory Authority for an EGX listing later this year, the Arabic press reports. While the target fund size has not been finalized, the blank-check vehicle plans to acquire firms across the consumer goods, industrial, education, and financial services sectors.

Building on a developed footprint: The new SPAC expands RMBV’s already extensive North African portfolio, which includes stakes in EGX-listed Taaleem and Cleopatra Hospitals Group, alongside Tunisia’s Lilas and Algeria’s Cipro. The firm recently deployed its North Africa Fund III to fully acquire grocery retailer Spinneys Egypt for roughly EGP 2.5 bn.

Egypt’s blank-check market is slowly taking shape. RMBV’s move follows the listing of impact investor Catalyst Partners Middle East, which became the country’s first active SPAC after hitting the trading floor following its temporary listing in late 2024. More recently, OG Capital For Investments secured a temporary main-market listing with an initial issued capital of EGP 10 mn. Check out what SPACs are and how they work in our explainer.

A tight-knit strategy

Oriental Weavers (OW) wants a bigger slice of its core subsidiaries to maximize return on equity, it said in a bourse filing (pdf). The carpet manufacturing giant is exploring several options to execute the transaction, primarily through share swaps. The targeted export-focused subsidiaries include Oriental Weavers International (where OW currently holds a 99.99% stake), the Egyptian Fibers Company (88.12%), Oriental Weavers USA (82.68%), Oriental Weavers Textiles (71.44%), and Mac Carpet (58.29%).

Why it matters: The group already has 65% exposure to USD-denominated revenues, according to the company’s latest earnings release. By increasing its ownership in high-performing subsidiaries — without consuming banknotes or by monetizing underutilized assets — the company could further boost its USD inflows and boost return on equity.

Advisors: Oriental Weavers authorized EFG Hermes to study the alternatives and plans to appoint an independent financial advisor to determine fair values, alongside a legal advisor and a tax advisor.

ALSO- The company’s board signed off on an EGP 350 mn land purchase from Mac Carpet, in a transaction that covers a 32.7k sqm plot of land and its buildings in the 10th of Ramadan City’s industrial zone and represents 4.4% of Oriental Weavers’ total equity. The board also approved an asset disposal program worth EGP 700 mn — representing 8.8% of the company’s equity — to liquidate nonproductive residential, commercial, and industrial real estate assets across the country, according to a separate filing (pdf).

Securing the harvest

The government has procured 4 mn metric tons of local wheat since the mid-April harvest began, putting it on track to hit its 5 mn ton target before mid-August, Reuters reports, citing Ahmed Adam, head of the directorates, cooperatives, and training sector at the Agriculture Ministry. The strong intake — currently outpacing last year by 600k tons — was driven by offering EGP 2.5k per ardeb, up from last year’s average prices of EGP 2.3k, with a commitment to pay farmers within 48 hours of any contract closing.

BUT- Despite the record local yield, the country still faces a projected 12.5 mn-ton import gap this year. To structurally reduce this reliance, the government is pushing forward with the New Delta project to add 2.2 mn feddans of arable land, according to Prime Minister Mostafa Madbouly’s remarks on Saturday.

Looming global threats: While this year’s harvest is secure, the near-total shutdown of the Strait of Hormuz has choked off up to 45% of the global seaborne fertilizer trade. Surging nitrogen prices threaten to severely reduce future global wheat yields, potentially forcing Egypt to bridge its supply gap in a much tighter, more expensive international market next season.

PSA

WEATHER- It’s another mild day in Cairo today, with a high of 31°C and a low of 19°C, according to our favorite weather app.

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

And over the holiday, expect to see moderate days in the capital (with a high of 30-32°C) and more springy conditions for our friends on the Mediterranean, with a high of 24-27°C.

The big story abroad

Despite news of an incoming US-Iran truce, borrowing costs are expected to stay high amid high levels of US borrowing, the whopping debts incurred by the AI boom, and a return to monetary tightening. Even if the conflict resolves soon — and the inflation caused by costly oil prices subsides — there is reason to believe the recent spike in long-term yields will not fully abate.

Speaking of which: President Donald Trump ordered negotiators not to rush into an agreement with Iran, emphasizing that the US naval blockade will “remain in full force” until such a pact is reached. Media affiliated with the Iranian regime has reported that Washington is still obstructing aspects of a potential resolution.

Meanwhile, in outer space: China dispatched the Shenzhou-23 crewed spaceflight mission yesterday, conveying three astronauts to its space station in efforts to better understand the physiological effects of prolonged periods in space. Beijing has set its sights on a crewed moon landing by 2030.

ALSO- Is ‘Gen Z’ a misnomer? Financial Times Business Columnist Pilita Clark suggests that our understanding of the so-called Gen Z demographic may be far from the reality. She relies on research, books, and articles to make her case and advise employers not to perpetuate misleading stereotypes about younger people, indicating that older demographics often exhibit similar problems, concerns, and behaviors.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We are unpacking a new OECD report that highlights the stark disconnect between Egypt’s booming academic research output and a private sector that is failing to commercialize it.

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food security investment M&A SPACs What We're Tracking Today

This Eid al-Adha, Somabay comes alive with sun-drenched days, vibrant beach moments, live music, seaside gatherings, and experiences made to be shared.

From 27-31 May, the Spirit of Eid unfolds across the destination with a curated lineup of beach activations, sunset sessions, rooftop beats, family experiences, sports tournaments, workshops, and late-night entertainment set against the stunning backdrop of the Red Sea.

The Big Story Today

A 41-year split?

KPMG is considering restructuring operations in Egypt, in a move that could end its 41-year partnership with local affiliate Hazem Hassan, three sources familiar with the matter tell EnterpriseAM. The potential split is part of a broader global restructuring at the Dutch-headquartered accounting and advisory network, the sources say.

Egypt’s accounting and audit sector is going through significant turbulence that is affecting several major international firms, former head of the Egyptian Tax Authority and current UN international tax advisor Mostafa Kader tells EnterpriseAM. The uncertainty is largely due to Egypt’s continued delay in implementing the OECD’s global minimum tax framework under Pillar Two, which sets a 15% minimum tax rate on multinational corporations, he says. The lack of a clear timeline for adopting the framework has increased uncertainty surrounding international tax treatment and multinational operations in Egypt, he adds.

SOUND SMART- The OECD introduced the Pillar Two model rules in December 2021 as part of a broader initiative to address tax challenges arising from the digitalization of the global economy. Over 135 countries, representing around 90% of global GDP, have endorsed the framework, which establishes a 15% global minimum tax for multinational companies with annual consolidated revenues exceeding EUR 750 mn.

There’s another reason: One sticking point which Hazem Hassan is taking issue with relates to KPMG’s branding structure, which is reportedly shifting to a franchising model with multiple offices operating under the same trademark in certain markets, two sources close to discussions within Hazem Hassan tell us.

KPMG’s partnership with Hazem Hassan remains intact for now. Reports of a finalized exit by September are unfounded, as any separation would require a lengthy transition period to safeguard client relationships and continuity of audited financial statements and balance sheets, one of the Hazem Hassan sources tells us. Negotiations between the two firms are still ongoing in an attempt to preserve the decades-long partnership, the source adds.

Hazem Hassan is already running contingency scenarios, both Hazem Hassan sources tell us. The firm is weighing several options to maintain client stability, including potential alliances with another Big Four firm or a new international franchise agreement, sources say. The priority is retaining multinational clients, many of which require an internationally affiliated audit firm for quarterly reporting and compliance purposes, but the sources say the separation could also create space to bring on new local clients.

The situation isn't confined to Hazem Hassan. It extends to the other three Big Four firms — Deloitte, PwC, and Ernst & Young, Kader says. The international tax framework now requires careful policy consideration to preserve stability within Egypt’s accounting and advisory sector, he adds.

A complete redrawing of the map: “The coming period could see Egypt’s international tax and consulting sector entirely reshaped,” a source at one of the big four accounting firms tells us. “The market should expect to see clients and talent shifting between firms to meet the requirements of the next phase, alongside potential acquisitions and the creation of new entities that align with international tax controls under OECD rules,” the source adds.

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tax THE BIG STORY TODAY

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IPO WATCH

Energy in the EGX

Korra Energi’s private placement was 5.7x covered by the close of its subscription window yesterday, with investors placing orders for 845 mn shares against 148.5 mn shares on offer, offering manager Prime Holding’s CEO Yasser Shahin tells EnterpriseAM.

Retail demand is also running hot. The retail tranche was roughly 10.6x oversubscribed by the end of yesterday’s session, with retail investors booking some 1.04 bn shares for the 99 mn shares tranche. Subscription for the retail tranche is set to close today.

Why it matters: Korra’s IPO is the EGX’s second private-sector main-market listing this year after Gourmet’s blockbuster offering. The solid coverage figures signal that local institutions and retail investors are willing to back new listings despite the still uncertain macro and regional backdrop.

REMEMBER- Korra is floating 247.5 mn existing shares — around 11% of its share capital — at EGP 2.97 apiece, putting the offering’s target proceeds at up to EGP 735 mn. The founders scaled back the secondary sale from an initially planned 20%, retaining an 89% controlling stake to capture the company’s anticipated future growth, Korra Energi Vice Chairman Heba Korra tells us. The offer is split 60% to institutional investors and 40% to retail investors. The EGP 2.97 offering price represents a discount compared to the EGP 3.20 fair value set by the independent financial advisor Baker Tilly.

ADVISORS- Prime Holding is the offering manager, El Sherif Law Firm & Consultants is serving as counsel, and Baker Tilly is the independent financial advisor.

Tags:

EGX IPO IPO watch

NBFIS

The real target

The sound of silence: Egypt’s consumer finance federation and member companies have not responded publicly to a mounting media and parliamentary backlash over the rapid expansion of consumer lending, buy now, pay later (BNPL) services, and installment-based financing.

The spark — and the regulatory backdrop: The controversy ignited after CIB CEO Hisham Ezz Al-Arab warned that customers shut out of bank financing are turning to non-bank lenders at elevated borrowing costs despite weak repayment capacity, raising concerns about the rapid growth of non-banking financing and what industry insiders considered loosely regulated consumer lending. “A small spark in the non-bank financial sector could shake the entire economy,” he said.

The remarks didn't emerge in isolation. They followed decisive measures the Central Bank of Egypt introduced in April to tighten how commercial banks finance NBFIs. Parliament has since joined the fray, with lawmakers filing official briefing requests demanding urgent hearings on the “unregulated expansion” of consumer finance firms. Over the weekend, the Financial Regulatory Authority moved to publicly name NBFI violators, setting up a registry of individuals and companies that breach non-banking regulations.

Competition or systemic risk?

While critics warn of a potential “credit bubble,” there is a broader question: Are banking sector concerns truly driven by systemic risks, or by intensifying competition over the highly lucrative retail banking segment?

The numbers don’t support the competition framing. The largest consumer finance company in the market — which accounts for roughly a quarter of the sector — generated around EGP 760 mn in profits last year, head of research at Al Ahly Pharos Hany Genena tells EnterpriseAM. CIB posted nearly EGP 82 bn in profits over the same period. “Consumer finance companies are competing aggressively among themselves and with fintech firms, but comparing these companies to major banks is like comparing a cargo ship to a motorcycle in terms of scale,” he says.

Egypt’s total non-bank consumer finance portfolio stood at around EGP 96 bn by end-2025 — up more than fivefold since 2021 — while CIB alone held an EGP 18 bn credit card portfolio, against roughly EGP 28 bn for the aggregate credit card portfolios of all banks operating in the market, financial analyst Ahmed Ezz El Din tells us. The total number of credit cards issued by all Egyptian banks stood at 6.3 mn by end-2024, according to the CBE.

Different customer bases: “The non-bank financial sector is serving a completely different customer base that banks had not been reaching in the first place,” Ezz El Din says — pointing not to competition, but complementarity. “Banks serve customers with stronger [assurances] and higher financial solvency, while non-bank finance companies cater to a broader and smaller-income segment that previously had little or no access to formal financing channels,” he explains.

Factoring in the sector’s guardrails

Official data suggest that while the non-bank credit footprint is expanding rapidly, it operates under stringent regulatory oversight. The sector comprises roughly 48 licensed companies, 10 of which are directly owned by commercial banks. Others are EGX-listed (such as Valu) or are subsidiaries of listed holding groups, putting them under corporate governance and transparency mandates comparable to banking disclosures. NBFIs are also barred from securing bank lines without prior FRA approval.

Credit breakdown: Total consumer finance extended by NBFIs reached EGP 96.3 bn in 2025, serving more than 10.8 mn customers. By contrast, commercial bank lending to the household sector surged to EGP 1.4 tn, up from EGP 1.14 tn in 2024 — a structural increase in consumer credit demand as households leverage personal loans and durable-goods financing to buffer inflationary pressure.

Delinquency is contained. Non-performing loans across companies and associations under FRA supervision do not exceed 3%, below the globally accepted threshold of around 5%. All consumer finance companies operate within the iScore credit information system, meaning risks are systematically tracked, Ezz El Din says.

The regulatory floor has been rising since 2020, with tighter Know-Your-Customer protocols, mandatory iScore registry, and consumer-protection disclosure rules requiring clients to sign off on all fees and interest costs. Unverified lending practices are now concentrated in the informal market. The FRA also requires Basel III compliance across four pillars: capital adequacy and solvency, risk management and provisioning, customer protection and transparency, and ongoing supervision and governance.

Why is the CBE acting now?

Genena argues the CBE's move is primarily a macroeconomic tool aimed at controlling inflation and managing liquidity — not a response to imminent credit distress. “The central bank is fundamentally trying to control consumer spending because this spending ultimately pressures both the balance of payments and inflation,” he tells us. “Consumer finance is largely concentrated in durable goods, and even locally manufactured products contain a high imported component. The more consumer finance expands, the greater the indirect demand for imports, which increases pressure on the balance of payments at a time when the central bank is trying to preserve exchange rate stability.”

Controlling demand without hiking rates: “The central bank has two tools to control consumption,” Genena says. “The first is raising interest rates, but that is a non-discriminatory instrument that impacts everyone — the government, companies, and consumers alike. What is happening now is tighter regulatory oversight on consumer finance companies… aimed at slowing credit growth and limiting inflationary pressures without resorting to interest rate hikes.”

What’s next: Genena expects the regulatory squeeze to extend into the banking sector itself — potentially through tighter retail lending conditions — as macroprudential regulation becomes a preferred tool for managing inflation and easing pressure on the balance of payments.

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NBFIs NBPL

A MESSAGE FROM AUC ONSI SAWIRIS SCHOOL OF BUSINESS EXECUTIVE EDUCATION

Healthcare management in the region: From heroic effort to reliable systems

Healthcare leadership across Egypt and the region is moving from heroic, personality-driven models toward system-led management. For years, hospitals have relied on individuals who carry out operations, solve problems in real time, and compensate for structural gaps. This approach works until it doesn’t. A system built around one person’s capacity has a ceiling.

That ceiling becomes clearer as hospitals handle rising demand, tighter resources, and more complex patient journeys. Across public and private sectors, reliance on “heroic leadership” creates variability, operational bottlenecks, and limits scalability. What resolves daily crises does not deliver consistent performance.

The move toward system-based management is now playing out in day-to-day operations. Structured workflows, clearer accountability, and standardized processes are helping hospitals reduce congestion, improve patient flow, and optimize bed utilization. These gains are not driven by individual effort, but by design, enabling consistency and resilience.

This same logic becomes measurable when supported by the right data. By tracking patient outcomes, resource utilization, and key metrics such as length of stay and throughput, organizations can anticipate challenges, align staffing, and enhance safety and quality. Data becomes a management tool, not just a reporting function.

Reliable healthcare systems require managers who can design for consistency, not just respond to pressure. That means building capabilities in operational excellence, systems thinking, and performance management.

That is where executive education becomes practical. Through programs such as the Hospital Management and Operational Excellence Diploma, the Healthcare Executive Leadership Program, and the Polyclinic Executive Edge, AUC Onsi Sawiris School of Business Executive Education helps healthcare leaders build capabilities in governance, workflow optimization, and operational resilience.

The transition from individual effort to system performance is no longer optional. It is what determines whether healthcare organizations can scale, sustain quality, and deliver consistent outcomes.

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A MESSAGE FROM AUC ONSI SAWIRIS SCHOOL OF BUSINESS EXECUTIVE EDUCATION AUC

EARNINGS WATCH

Earnings are in from Contact Financial + Mopco

Contact Financial Holding

Contact Financial Holding’s net income rose 12% y-o-y in 1Q 2026 to EGP 66 mn, according to an earnings release (pdf). Total operating income climbed 27% y-o-y during the quarter to reach EGP 642 mn, buoyed by a strong showing from its financing business that helped offset losses incurred by its ins. division.

The breakdown: The financing division’s operating income jumped 46% y-o-y to EGP 542 mn, despite a 5% contraction in its total portfolio size. The growth was driven by a strategic pivot toward higher-yield products, gains from portfolio transfers, and expanding digital financing volumes. This translated into a 170% y-o-y jump in the division’s net income to EGP 72 mn.

On the ins. front: The company’s ins. arm saw revenues climb 42% y-o-y to EGP 881 mn on the back of a 29% y-o-y increase in gross written premiums to EGP 1.4 bn. While top-line growth was supported by new product rollouts and cross-selling, the division’s bottom line was squeezed by a spike in medical claims carried over from 2025 and rising expansion costs, resulting in a net loss of EGP 3 mn for the quarter.

Misr Fertilizers Production

Misr Fertilizers Production’s (Mopco) net income rose 88% y-o-y to EGP 5.3 bn in 1Q 2026, according to the fertilizer giant’s latest earnings release (pdf). Sales grew 29% y-o-y to EGP 8.2 bn, driven by stable natural gas supplies and production volumes that exceeded initial plans.

The breakdown: Export markets accounted for the lion’s share of revenues at 78.5% of total sales (with urea making up 94% of exports, and ammonia 6%). Domestic sales made up the remaining 21.5% as the company maintained its commitment to supply allocated urea quotas to the Agriculture Ministry.

Tags:

Contact Financial earnings earnings watch Mopco

Also on our Radar

El Ezaby is still IPO-bound

Private equity firm B Investments is preparing pharmacy chain El Ezaby for an initial public offering (IPO) on the EGX, Chairman Hazem Barakat told Al Borsa without referring to a projected timeline. The push to list follows B Investments’ recent successful partial exit from Gourmet on the EGX, which Barakat highlighted as a positive indicator of market appetite.

REFRESHER- Barakat said in February that the pharmacy chain could make its EGX debut as early as next year, though the offer size and manager had not been decided. The Sovereign Fund of Egypt acquired a 49% stake in El Ezaby in May 2023, later partnering with B Investments and MTI to launch an EGP 505 mn logistics joint venture, EZ International.

Infinity Solar exit + healthcare expansion: B Investments also plans to divest its stake in Infinity Energy Solar by year-end. The capital will be repositioned to fund B Investments Healthcare.

Mapping mineral wealth

The Mineral Resources and Mining Industries Authority is launching the country’s first comprehensive airborne national mineral survey in 42 years, tapping Spain’s Xcalibur to map untapped resources across six major geographic zones, including the Eastern and Western deserts, Sinai, Bahariya Oasis, and Abu Tartour, according to a statement from the Oil Ministry.

Why it matters: This project is long overdue and a critical de-risking tool for mining companies. By providing a high-resolution geological database, the government helps slash the upfront exploration costs that have historically deterred fresh investments. The move is the first major dividend of recent legislative reforms that transformed the mineral resources authority into an independent economic entity, giving it greater flexibility.

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ALSO ON OUR RADAR critical minerals IPO IPO watch mining

PLANET FINANCE

What Kevin Warsh’s “reform-oriented” Fed means for us

Kevin Warsh’s response to being sworn in as the new Chairman of the Federal Reserve on Friday was direct. He will lead a reform-oriented Federal Reserve “escaping static frameworks and models.”

What does this mean for our neck of the woods? Whatever framework Warsh constructs over his first 90 days will be the framework GCC monetary authorities operate within, irrespective of regional fiscal needs. Saudi Arabia, the UAE, Qatar, Bahrain, and Oman peg their currencies to the greenback, which means SAMA, CBUAE, QCB, CBB, and CBO will import Warsh’s policy stance with no domestic mediation.

A complicated starting point: Warsh has explicitly told the market the set of assumptions made during Jerome Powell’s Fed are about to change, and the starting conditions complicate everything. April CPI came in at 3.8% — a three-year high. Mortgage rates climbed to a nine-month high. JPMorgan now forecasts rates will likely remain unchanged until mid-2027, with hikes more likely than cuts. Bank of America has pushed its first-cut forecast to 2H 2027.

The tension was visible in the East Room on Friday: Trump pressed a growth-first policy, and Warsh invoked central bank independence and price stability in the same set of remarks. A “reform-oriented” Warsh Fed could move policy faster in either direction than Powell’s framework allowed, which means EM importer treasuries and external financing teams all need to rebuild their 18-24 month assumptions around a framework that hasn’t been disclosed yet.

For GCC sovereign funds, the equation runs differently. PIF cut its international allocation target from 30% to 20% in April specifically to reduce exposure to US monetary policy transmission. The Warsh transition vindicates that swing, but only if the framework shift produces tighter conditions.

A different playbook: If Warsh delivers what Trump wants and rates start moving, GCC SWFs that pulled capital home over the last six months will be reading a different playbook than the one they positioned for Aramco and Adnoc’s war windfalls compound under tight rates. The non-oil credit cycle needed for UAE and Saudi industrial diversification requires the opposite.

MARKETS THIS MORNING-

Asia-Pacific markets are up in early trading this morning, led by Japan’s Nikkei, which soared to record highs as a potential end to the regional war reignited investor appetite. South Korea and Hong Kong are closed today. US markets, too, will be closed today in observance of Memorial Day.

EGX30	52,861	+1.5% (YTD: +26.4%)
USD (CBE)	Buy 52.25	Sell 52.38
USD (CIB)	Buy 52.25	Sell 52.35
Interest rates (CBE)	19.00% deposit	20.00% lending
Tadawul	11,028	+0.4% (YTD: +5.1%)
ADX	9,658	+0.2% (YTD: +3.4%)
DFM	5,693	+0.6% (YTD: -5.9%)
S&P 500	7,473	+0.4% (YTD: +9.2%)
FTSE 100	10,466	+0.2% (YTD: +5.4%)
Euro Stoxx 50	6,019	+1.0% (YTD: +3.9%)
Brent crude	USD 103.54	+0.9%
Natural gas (Nymex)	USD 2.91	-3.7%
Gold	USD 4,556	-0.4%
BTC	USD 76,613	-0.8% (YTD: -12.6%)
S&P Egypt Sovereign Bond Index	1,047	+0.1%% (YTD: +5.5%)
S&P MENA Bond & Sukuk	150.44	+0.2% (YTD: -1.0%)
VIX (Volatility Index)	16.70	-0.4% (YTD: +11.7%)

THE CLOSING BELL-

The EGX30 rose 1.5% at yesterday’s close on turnover of EGP 7.3 bn (8.8% below the 90-day average). International investors were the sole net buyers. The index is up 26.4% YTD.

In the green: Raya Holding (+7.6%), ADIB (+4.0%), and Palm Hills Developments (+4.0%).

In the red: Valmore Holding -EGP (-3.1%), Qalaa Holdings (-2.1%), and Abu Qir Fertilizers (-2.1%).

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Financial Markets Planet Finance

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

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BLACKBOARD

The publication paradox

Egyptian universities are now publishing in the world’s top-cited journals at rates that beat the OECD average. Research output has grown fivefold since 2009, the university count has doubled in five years, and only 3% of large Egyptian firms collaborate with academia on innovation activities.

The gap between a globally credible research base and a private sector that isn’t quite sure what to do with it is the binding constraint on our knowledge economy, a recent OECD Innovation Policy Review (pdf) finds.

The number of universities jumped from 53 in 2018 to 100 as of 2023, and research spending crossed 1% of GDP. The share of Egyptian publications appearing in the world’s top 10% most-cited journals rose from 6.6% in 2014 to 11% in 2022 — above the OECD average.

On paper, this is what the foundations of a knowledge economy are supposed to look like. But the demand side hasn’t kept pace. Egyptian businesses spend 0.2% of GDP on R&D — a fraction of OECD levels. Only 7% of innovation-active SMEs and 3% of large firms collaborate with universities on innovation activities. Employment of PhD holders in industry is, in OECD words, “very low.” Many firms still operate on legacy products and show limited interest in engaging research institutions at all.

Patent activity is low and stagnant despite the surge in publications. The structural reason is two economies operating side by side. One is the startup ecosystem — one of the largest in the region, with strong fintech depth and several scale-stage companies that absorb researchers and commercialize university work. The other is a much larger base of traditional firms in agriculture, basic manufacturing, and rent-generating sectors. These firms face limited competitive pressure to modernize and have little reason to invest in research.

This is what the OECD calls a “science-push” model — universities and researchers trying to push innovations into the market after the fact, rather than building products and research agendas with industry from the start.

The result? The country produces increasingly sophisticated human capital and globally credible research, yet much of that knowledge stays within academia because the surrounding economy lacks the absorptive capacity to use it. Graduate unemployment runs at roughly twice the national average. Publication numbers go up; patents and commercialization don’t.

Some institutions are working to close the gap. AUC’s Innovation Hub embeds corporates, startups, and researchers in the same ecosystem to co-develop solutions and shorten the distance between research and deployment. The recently launched Alliance and Development Initiative by the Ministry of Higher Education aims to link universities, research centers, industry, and investors through regional clusters.

The OECD’s argument is that these kinds of co-creation models — rather than isolated academic research — are what produce meaningful technology transfer. Egypt has spent the past decade building the supply side of a knowledge economy. The harder work now is to build an economy that can use what those universities and labs are producing.

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Blackboard Education higher education

CALENDAR

2026

MAY

26-31 May (Tuesday-Sunday): Eid El Adha.

JUNE

30 June (Tuesday): June 30 Revolution.

JULY

9 July (Thursday): Monetary Policy Committee’s fourth meeting of 2026.

23 July (Thursday): Revolution Day (TBC).

AUGUST

20 August (Thursday): Monetary Policy Committee’s fifth meeting of 2026.

26 August (Wednesday): Prophet Muhammad’s birthday.

SEPTEMBER

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

24 September (Thursday): Monetary Policy Committee’s sixth meeting of 2026.

27-29 September (Sunday-Tuesday): Global Conference on Population, Health, and Human Development.

OCTOBER

6 October (Tuesday): Armed Forces Day.

29 October (Thursday): Monetary Policy Committee’s seventh meeting of 2026.

DECEMBER

17 December (Thursday): Monetary Policy Committee’s eighth meeting of 2026.

EVENTS WITH NO SET DATE

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

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

July 2026: British Prime Minister Keir Starmer set to visit Egypt.

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

2026: The Egyptian-American Economic Forum.

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.

2027: Egypt-EU Summit 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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