LVP Pharma continues Rameda accumulation spree

Wednesday, 10 Jun 2026

LVP Pharma continues Rameda accumulation spree

An independent publication supported by

Opening up a world of opportunity

Realize More

Live More

Powering with nature

Driving growth

Today at a glance

M&A WATCH

LVP Pharma continues accumulation spree with EGP 847 mn Rameda share purchase.

Startup watch

Blnk raises USD 37.1 mn to scale its consumer finance operations.

EARNINGS WATCH

Gourmet plans three new stores as grocer targets EGP 9 bn in sales by 2030.

Real estate

Turkish industrial developer Polaris expands into luxury residential real estate.

WHAT WE’RE TRACKING TODAY

Government mulls handing SFE control over entire state-owned portfolios.

Also on our Radar

Maersk hikes Egypt import charge.

PLANET FINANCE

The new AI gainers.

HARDHAT

How Egypt’s contracting market is being rewired around three structural shifts.

WHAT WE’RE TRACKING TODAY

SFE to take on entire state-owned sectors

Good morning, ladies and gents. Today’s issue is all about growing and expanding. The players in our news well are either buying up shares, securing a massive bag, opening up new shops, or building out an entirely new empire.

LVP Pharma once again ups its stake in Rameda to 31.5%, edging close to the mandatory tender offer line. Meanwhile, local fintech Blnk secured USD 37.1 mn in fresh debt and equity to scale its consumer finance operations and hand us new debit cards.

Also expanding: Gourmet Egypt is plotting three new stores every year to hit EGP 9 bn in annual sales by 2030. Over in real estate, Turkish industrial developer Polaris Parks is entering the luxury residential market with a planned EGP 5 bn investment in west Cairo. We could see our sovereign fund also expanding, potentially taking over entire state-owned sector portfolios to maximize treasury returns.

***

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.

***

The SFE may get whole sectors

The Madbouly government is considering having the Sovereign Fund of Egypt (SFE) manage entire state-owned sector portfolios — including telecoms, textiles, fertilizers, and metals — to maximize returns for the treasury and give the Finance Ministry a more centralized management, a senior government official tells EnterpriseAM. A new inventory has pushed the universe of state-owned companies from 709 we reported of last year to over 800, with the final count expected to reach 1k once additional holdings are added.

The cleanup continues: The government is building a unified database to resolve what the official describes as “a 70-year legacy” of disorganized state assets. This builds on the recent dissolution of the Public Enterprises Ministry, which shifted oversight of profitable enterprises to the SFE and the cabinet’s SOE Oversight Unit.

The EGX pipeline: The temporary EGX listing push continues as part of structural reforms tied to a EUR 4 bn EU funding package, the official notes. The government is restructuring six holding companies ahead of potential 4Q offerings. It is also currently selecting FRA-approved investment banks to promote 16 temporarily listed firms that have already drawn investor interest.

Arcius takes the wheel

BP has secured government approval to transfer five Mediterranean gas concessions to Arcius Energy — BP’s JV with Abu Dhabi National Oil Company’s investment company XRG — the Arabic press reports, citing an unnamed government official. The assets include BP’s wholly-owned North Damietta producing concession, a 10% stake in the Shorouk concession — which contains the Zohr field — and exploration concessions in North El Fayrouz (which BP holds 50% of), Bellatrix (50%), and North El Tabya (100%). BP is also negotiating the transfer of the North Alexandria concession to Arcius.

BUT- The transfer does not necessarily signal BP’s retreat from Egypt. Arcius was launched in late 2024 as a BP-controlled venture (with a 51% stake) and dedicated gas platform for Egypt, targeting USD 3.7 bn in investments over the next five years. BP has continued to invest in Egypt, announcing gas discoveries, securing additional exploration acreage, and advancing drilling.

BP has been undergoing a global corporate overhaul and has pledged to raise USD 20 bn through asset sales by 2027, alongside pursuing cost reductions and debt repayment. The restructuring has been accompanied by boardroom tensions and a company-wide reorganization under CEO Meg O'Neill, who assumed the role in April. BP has already divested assets in Germany, explored sales of North Sea holdings, and reviewed portfolios across several markets, including Egypt.

Bringing Nargis online

Chevron is planning to invest some USD 400 mn to develop the Nargis gas field in the Mediterranean, with four development wells expected to be drilled by mid-2027, the Arabic Press reports, citing an unnamed government official. The wells are expected to add around 500 mmcf / d to Egypt’s output by early 2028.

BACKGROUND- Nargis is one of Egypt’s largest discoveries in recent years. The field lies off the shore of El Arish and is estimated to hold 2.5 to 3.5 tcf of recoverable gas reserves. Chevron operates the concession with a 45% stake, alongside Italy’s Eni (30%), UAE-based Mubadala Energy (15%), and state-owned Tharwa Petroleum (10%).

Launch of single-stock futures pushed back

Investors will have to wait a few extra days to trade futures on the EGX. The bourse has postponed the rollout of trading single-stock futures contracts on the CIB and Talaat Moustafa Group to Sunday, 21 June. The rollout, initially slated for 18 June, was rescheduled seeing as the market will be closed in observance of the Islamic New Year. We explored what the move means for the market and investors in yesterday’s coverage — check it out here.

Happening today

It’s inflation day — annual urban inflation is projected to decelerate for a second consecutive month in May, driven by cooling food prices, weaker consumer demand, and favorable base effects, analysts tell EnterpriseAM. In April, annual urban inflation eased 0.3 percentage points to 14.9% y-o-y, marking its first decline in three months.

The optimists: Thndr’s Esraa Ahmed expects annual inflation to ease to around 13.7% in May, supported by favorable base effects and moderation in m-o-m price increases for certain food items. Beltone Financial research head Ahmed Hafez forecasts a similar 13.7-13.8% reading: “We observed a continued decline in the prices of some food items, albeit at a slower pace than in the previous month. More broadly, food prices appeared largely stable throughout May,” he tells us.

Consumer weakness: Veteran banker and EG Bank board member Mohamed Abdel Aal expects a slight drop of 0.5-1 percentage points. He attributes the downtrend to “favorable base effects, [and] lower prices across most food commodities due to weak demand, reflecting consumers' diminished purchasing power.”

But not everyone expects a major drop: HC Securities’ Heba Monir projects a higher 14.7% y-o-y and 1.7% m-o-m reading, while a Reuters poll of 15 analysts yielded a median forecast of 14.5% y-o-y, with estimates ranging between 13.3-16%. Analysts warn the near-term deceleration will “be short-lived,” as April ’s electricity tariff hikes, local currency fluctuations, and regional supply chain pressures fuel inflation over the summer.

The CBE adjusts course: Escalating regional conflicts have forced the Central Bank of Egypt to sharply revise its medium-term inflation outlook. The CBE now sees headline inflation averaging 16-17% in 2026 — up from the 11% projected in its 4Q 2025 report — before cooling to 12-13% in 2027. Inflation will remain above the CBE’s initial 7% (±2%) target range through 4Q 2026, with single-digit readings no longer expected before 2H 2027.

How will this impact interest rates? The CBE held interest rates steady during its April and May meetings, pausing its monetary easing cycle that delivered 825 bps in cuts since April 2025. The CBE’s Monetary Policy Committee has adopted a “wait-and-see approach” to ensure domestic policy remains restrictive enough to anchor inflation expectations and maintain a positive real interest rate margin.

PSA-

WEATHER- It’s the coolest day we’ve seen all week in Cairo, the capital looking at a high of 35°C and a low of 23°C, according to our favorite weather app.

It’s nicer in Alexandria, with a high of 28°C and a low of 20°C.

You’ve spent decades building wealth, and the question now isn’t how to make money — it’s how to make sure it survives you, works across borders, and doesn’t quietly erode while you’re not looking. The rules have changed. Egyptian real estate, once a near-guaranteed store of value, is competing with markets in Greece, Spain, and Dubai.

Whether it’s art as an asset, crowdfunding, or the tax implications quietly stacking up behind that second passport, the toolkit for serious capital deployment has expanded faster than most conventional advice — or most advisors — have.

In Issue 3 of EnterpriseAM Money Matters, we cover the decisions that matter most when you’re at the stage where capital preservation is just as important as capital growth — and where getting it wrong is no longer something you can simply recover from.

Coming straight to your inbox — today, 11 AM Egypt.

The big story abroad

Geopolitical tensions are escalating once again after the US launched retaliatory airstrikes against Iran. The strikes follow Tehran shooting down a US helicopter over the Strait of Hormuz, with US forces targeting Iranian air defense and radar sites near the strait. “The mission is a proportional response to unjustified Iranian aggression,” the US Central Command said in a statement. The exchange threatens the stability of the already-fragile ceasefire and complicates negotiations for a peace agreement.

Everyone wants a piece of SpaceX: The IPO has so far attracted over USD 250 bn in orders, with investors lining up to get a piece of what is expected to be the largest-ever IPO. The figure is expected to rise further as the company continues its marketing push. The artificial intelligence and spaceflight player was looking to raise USD 75 bn from the offering.

The tech jitters are back: The S&P 500 and Nasdaq Composite closed lower on Tuesday, dragged down by a sector-wide tech selloff as investors shift their focus to defensive sectors. Some think SpaceX has something to do with it, noting that investors are repositioning ahead of the historic USD 1.75 tn listing, further worsening the pressure on mega-cap tech stocks.

Also worth reading this morning: The Wall Street Journal is out with a piece diving into The Future of Work and AI. With insight from 16 economists, the piece looks at what AI means for the economy, employees, and the workplace.

*** 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 break down the three structural shifts rewiring Egypt’s contracting market as major players pivot to the private sector to escape a growing O&M liquidity trap.

Tags:

Arcius Energy BP Central Bank of Egypt Chevron economy inflation oil and gas privatization watch Sovereign Fund of Egypt What We're Tracking Today

The horizon is expanding.

Introducing GranMarina, a new waterfront destination that opens the door to new experiences, new connections, and a new way to experience life by the sea.

A landmark addition to Somabay and a new chapter in the story of the destination, marking a significant milestone in the continued evolution of the destination.

Coming soon.

M&A WATCH

Doubling down on pharma

LVP Pharma upped its stake in EGX-listed pharma giant Rameda to 31.5%, effectively buying out Equinox Pharma Holding in an EGP 847 mn transaction, according to a bourse disclosure (pdf). LVP acquired some 167 mn shares — good for an 8.3% stake in Rameda — at EGP 5.07 each, representing a 3.1% markdown (by our math) to Rameda’s Monday close. Equinox, which had been trimming its position since March, “has [now] sold its entire stake in Rameda,” Rameda CFO Mohamed Aboamira tells EnterpriseAM.

LVP is now within touching distance of the MTO line. Under capital market rules, investors that cross the 33.33% threshold are required to launch a mandatory tender offer (MTO) for the remaining shares. This means any further buying would likely bring the MTO rule into play — a mechanism that exists to give minority shareholders the right to exit at a fair price once a single investor approaches control.

IN CONTEXT- The latest purchase caps a months-long accumulation spree. LVP nearly doubled its exposure to the pharma giant in a transaction valued at EGP 1.1 bn back in March. The firm bought a total of 223 mn shares, including 220 mn from Equinox Pharma Holding, at EGP 5.1 apiece, making it Rameda’s largest shareholder after a flurry of sizable share purchases in the preceding weeks.

Expect more buying ahead: LVP is expected to increase its stake further in the future, Aboamira says, noting the firm views Rameda as “the ideal vehicle to drive their healthcare strategy.” Whether that eventually takes LVP across the MTO threshold is undecided, though newly appointed Chairman Sherif El Akhdar has made it a top priority, the CFO adds.

A new board: El Akhdar — who founded LimeVest, the healthcare private equity firm that owns LVP Pharma — was appointed non-executive chairman of Rameda’s board of directors last week.

Molecules first: Rather than corporate acquisitions, Rameda is strictly targeting high-margin product and molecule acquisitions that can be immediately integrated onto existing production lines with zero capital expenditure (capex), Aboamira says. These products typically carry gross margins above 70% and EBITDA margins around 50%, providing a massive boost to the bottom line.

“Our next big move is regional expansion,” Aboamira notes. “This partnership grants us the access required to establish secondary packaging facilities and scale up exports to Saudi Arabia and other regional markets.”

Who else sits at the cap table: The PIF’s Saudi Seventh Investment Co. owns 11% of Rameda, while the Kuwait Investment Authority’s Ekuity B.V holds 10%, as per the company’s 1Q shareholding disclosure (pdf) dated 5 April 2026. With LVP’s stake now at 31.5%, the three largest institutional holders together account for just over half of the company, and the rest of the shares are free floating.

A snapshot of Rameda’s 2025 earnings: Revenues jumped 48% y-o-y to EGP 4.1 bn, though net income fell 22% to EGP 313 mn on surging financing costs and a one-off EGP 99 mn provision. That pressure is already easing. “Our finance costs have now dropped to roughly 20% from 28% at the beginning of last year,” he notes, adding that a reversal of the provision should give the company’s bottom line “significant room to breathe” this year.

ADVISORS- Al Ahly Pharos quarterbacked the transaction.

Tags:

M&A M&A Watch pharma Rameda

This publication is proudly sponsored by

Startup watch

Scaling up the loan book

Local point-of-sale fintech Blnk raised USD 37.1 mn in equity and debt to scale its consumer finance operations, according to a statement (pdf). The round includes USD 12.5 mn in Series A equity and USD 24.6 mn in debt facilities. Co-founder and CEO Amr Sultan said he preferred not to disclose the valuation when asked by EnterpriseAM. The transaction was an up-round from the startup’s 2022 seed raise.

The money is staying local. “Expanding outside Egypt is not the primary focus right now,” Sultan says. Instead, the fresh funds will be used to grow Blnk’s loan portfolio, invest in its tech stack, and develop new products, including a new debit card program. The program will need to be launched through a partner bank, though Sultan did not disclose which banks the firm is negotiating with.

No securitization this year: Blnk repaid its 2022 securitized bond in full ahead of maturity and does not plan to take another issuance to market in 2026. “When the company needs liquidity and the timing is right, we will use it,” Sultan notes.

The growth story: Since its launch in 2021 by Sultan (LinkedIn) and Tarek Elsheikh (LinkedIn), Blnk has onboarded over 1 mn customers and surpassed an EGP 1 bn loan portfolio. The company reached profitability last year following a 173% y-o-y revenue jump.

REMEMBER- Blnk’s new funding comes as NBFIs face tighter regulatory oversight. The country’s consumer-finance sector surged 57% y-o-y to EGP 96.3 bn in 2025, though the rapid expansion has sparked industry debate over consumer credit risks and subprime borrowing. In response, the Central Bank of Egypt tightened oversight on commercial bank lending to NBFIs, requiring non-bank lenders to actively report customer data to the Egyptian Credit Bureau (I-Score) to maintain their credit facilities.

Participants: Algebra Ventures led the equity round, joined by the Sanad Fund, Endeavor Catalyst, and returning investor Emirates International Investment. The debt syndicate included National Bank of Egypt, Suez Canal Bank, Bank Albaraka, Corplease, Globalcorp, and BM Lease.

Tags:

consumer finance debt Fintech Startup watch

EARNINGS WATCH

Filling the physical cart

Gourmet wants to push annual sales past EGP 9 bn by 2030 by adding two to three locations per year, CFO Tarek El Mahdi tells EnterpriseAM. The immediate pipeline includes a 500 sqm branch in Sodic West’s Ivory development and a 2.3k sqm flagship on 90th Street in 2H, followed by a New Giza branch in 1Q 2027.

Why it matters: The EGP 9 bn target is a leap from the EGP 2.7 bn in standalone revenues the company generated in 2025, according to its financial statement (pdf). The new openings will add to Gourmet’s existing footprint of 22 stores spanning Greater Cairo, Alexandria, El Gouna, and the North Coast. These ambitious growth targets follow the grocer’s blockbuster EGX debut in February, which saw its shares surge to the regulatory maximum of 40% on their first day of trading.

Doubling down on physical retail: While e-commerce and delivery channels now account for roughly 35% of sales, the luxury food retailer continues to emphasize on its physical footprint. Management views brick-and-mortar storefronts as the ultimate vehicle for walk-ins and impulse-driven purchases, with El Mahdi affirming that retail expansion remains the company’s primary growth engine. Store openings are not expected to place significant pressure on cashflows based on the company’s liquidity and its contract structure and liabilities with the developers, El Mahdi notes.

A solid first quarter

Gourmet reported a 47% y-o-y increase in net income to EGP 69.7 mn in 1Q 2026, according to its quarterly financials (pdf). The bottom line was supported by EGP 15.4 mn in other revenues, including EGP 10.8 mn in treasury bill yields. Excluding those T-bill yields, net income still increased roughly 25% y-o-y. Operating income rose 31% y-o-y to EGP 87.4 mn.

The income growth came despite mounting operating expenses. Selling and marketing costs rose 32% y-o-y to EGP 105 mn, while G&A expenses increased 40%.

Management expects stronger sales during the summer and 4Q holiday seasons to offset these fixed costs. The fourth quarter also benefits from a significant annual supplier rebate booked in December, El Mahdi says. To protect volume, the company has chosen not to fully pass recent cost increases on to customers, instead sharing part of the cost with clients such as delivery costs, he adds.

Tags:

earnings watch Gourmet retail

Real estate

Polaris goes home

From industrial to residential: Polaris Parks, a Turkish industrial-park developer with active Egyptian projects in the New Capital and Sadat City, has moved into Egyptian luxury residential projects through a new arm, Polaris Homes — launching two Sheikh Zayed projects, Özel Residences and Özel Villas, the company said at a press conference (pdf) attended by EnterpriseAM yesterday. Polaris Homes is targeting EGP 2.5-3 bn in sales from the two projects, with plans to invest an initial EGP 5 bn in boutique compounds over the next two to three years, General Manager Bassel Shoirah tells EnterpriseAM.

Why Egypt, and why now? The Turkish company’s launch coincides with a market correction following inflationary and FX shocks, creating room for new developers. Managing Director Osman Arıkan sees Egypt’s structural fundamentals as strong, claiming that marriage rates alone create demand for 450k housing units annually. The move reflects the company’s conviction that the Egyptian market is one of the best globally and will remain “promising forever” as long as demographic fundamentals hold, Arıkan says, ruling out plans to enter Saudi Arabia, where they are currently partnered with KSA’s Zamil Group.

The funding breakdown: The company plans to self-finance its projects through shareholders without taking on bank loans and aims to deliver the first two projects after 36 months, Shoirah says.

The factory playbook goes residential. In a crowded market, Polaris is focusing exclusively on the 10-50 feddan boutique compound segment — selective, mid-scale compounds in a market dominated by megaproject developers. “People want to know their neighbors and feel safe,” Arıkan says. The developer's experience managing industrial zones with strict regulatory and operational requirements should give it a competitive edge in delivering residential products, the company argues.

What’s next: Polaris Homes will focus on expanding in west Cairo over the next four to five years before moving east, Shoirah says. The company is also keeping its industrial business moving in parallel — planning to unveil the masterplan for its New Capital industrial and logistics park in 4Q, targeting USD 2 bn in investment, while Polaris’s second industrial project in Sadat City targets USD 1 bn in investment and has marketed 15% of its area in its first month, Shoirah adds.

Tags:

investment watch Polaris Parks real estate

Also on our Radar

Maersk hikes Egypt import charge

Regional uncertainty is still casting a shadow on shipping lanes, prompting shipping giant Maersk to raise its Egypt Customs Additional Item Charge-Import to EGP 1,415 per bill of lading from EGP 1k, plus 14% VAT, effective 15 June, the company said on its website.

On a more optimistic note, the company launched a new Baltic Sea-SLA service linking Gdansk, Bremerhaven, and Genoa / Vado Ligure with Port Said East and Alexandria, giving shippers a more direct route between North Europe, Italy, Egypt, and the East Med. The new link gives Egypt another clean leg in the broader Europe-Egypt-GCC routing corridor we’ve been tracking.

The new service lands as shipping lines are selectively rebuilding Egypt-facing routes while still watching regional risk. Maersk said that shipping conditions in the Strait of Hormuz have yet to materially improve and that it is operating with heightened caution in its latest Europe market update. We reported earlier this year that Maersk and Hapag-Lloyd were moving some services back through Suez, while a fuller recovery still depends on sustained stability.

British Airways bulks up its Cairo-London route

British Airways is ramping up its capacity on the Cairo-London Heathrow route for the upcoming winter season. Starting 25 October 2026 and running through 27 March 2027, the UK flag carrier will expand its flight schedule from 14 to up to 21 weekly flights, including a third daily service on certain days, according to a press release (pdf). Operating exclusively on its A321 fleet, the expanded schedule will add roughly 64k seats into the market, bolstering critical transit links between Cairo and key destinations across Europe and North America.

Why this matters: This airline’s expansion is part of the state’s broader push to capture a larger slice of the global tourism and transit market, following closely on the heels of a recent three-month airline incentive package. The package rolled out last month for Hurghada and Sharm El Sheikh airports to support flight operations amid ongoing regional volatility.

REFRESHER- The airline’s capacity boost comes as the local aviation sector experiences a flurry of private sector activity. Just last month, tourism giant Travco Group announced it is targeting a 4Q 2026 launch of a new USD 150 mn private airline, geared entirely toward funneling European charter traffic directly into Egypt's primary tourism hubs.

Tags:

ALSO ON OUR RADAR asset management Beltone Holding logistics Maersk

PLANET FINANCE

The new AI gainers

A growing number of firms are riding AI’s coattails: More than 200 industrial, utility, and mining companies linked to data centers or semiconductor supply chains outperformed the MSCI World Index over the past year, the Financial Times reports. The gainers include everyone from Caterpillar and Hochtief to steel producer Nucor and power-management company Eaton.

“[A]nything that can spin an engine is going to end up in a data center,” Dell’Oro’s Alex Cordovil said. Investors are increasingly wagering on the infrastructure behind AI — companies supplying the power, cooling, wiring, and equipment — rather than the companies building the models themselves.

This comes as spending on data center infrastructure is hitting record levels: Alphabet, Microsoft, Amazon, Meta, and Oracle are projected to spend a combined USD 700 bn on AI infrastructure this year alone, helping push US data-center construction spending to a record USD 50 bn this past April. Global data-center capacity is expected to double by 2030.

The biggest winners aren’t always obvious: Corning — the 175-year-old company behind Pyrex glass — has seen its shares rise more than 270% after signing optical-fiber agreements with Meta and Nvidia. Eaton reported data-center orders were up 240% in 1Q, while gas turbines once considered obsolete now carry backlogs of up to seven years as AI companies scramble for power.

Gulf investors are also putting their money into these enterprises: The Abu Dhabi Investment Authority (Adia) has recently capitalized on the USD 2.4 bn IPO of German gas-engine maker Innio, whose equipment helps power AI-era data centers. The stock jumped 23% on its Nasdaq debut, underscoring investor appetite for the infrastructure underpinning the AI boom.

The catch: Bain estimates the tech industry would need to generate USD 2 tn in annual AI revenue to justify the spending trends we’re currently seeing. The OECD has also warned of a potential repricing of AI assets if geopolitical tensions keep energy prices elevated. For now, though, investors seem happy backing the businesses building the AI boom.

MARKETS THIS MORNING-

Asia-Pacific markets fell in early trading this morning as flaring geopolitical tensions and Wall Street's tech selloff rattle investors. South Korea’s Kospi is leading losses, down 2.6%, and Japan’s Nikkei is down 0.9%. The Shanghai Composite and Hang Seng also opened lower. In the US, equities are expected to open in the red, with futures down.

EGX30	52,375	+1.0% (YTD: +25.2%)
USD (CBE)	Buy 51.65	Sell 51.79
USD (CIB)	Buy 51.62	Sell 51.72
Interest rates (CBE)	19.00% deposit	20.00% lending
Tadawul	11,115	+1.3% (YTD: +6.0%)
ADX	9,561	+0.8% (YTD: -4.3%)
DFM	5,785	+0.9% (YTD: -4.3%)
S&P 500	7,387	-0.3% (YTD: +7.9%)
FTSE 100	10,227	-1.4% (YTD: +3.0%)
Euro Stoxx 50	6,050	-0.2% (YTD: +4.4%)
Brent crude	USD 91.88	+0.5%
Natural gas (Nymex)	USD 3.13	-0.3%
Gold	USD 4,224	-1.5%
BTC	USD 61,752	-1.7% (YTD: -29.5%)
S&P Egypt Sovereign Bond Index	1,058	+0.1% (YTD: +6.5%)
S&P MENA Bond & Sukuk	151.25	-0.2% (YTD: -0.4%)
VIX (Volatility Index)	19.74	+4.3% (YTD: 32.2%)

THE CLOSING BELL-

The EGX30 rose 1.0% at yesterday’s close on turnover of EGP 8.9 bn (6.1% above the 90-day average). International investors were the sole net sellers. The index is up 25.2% YTD.

In the green: GB Corp (+5.3%), Heliopolis Housing (+5.0%), and Beltone Holding (+3.3%).

In the red: Misr Cement (-1.6%), Qalaa Holdings (-1.1%), and Edita (-1.1%).

Tags:

Artificial intelligence Financial Markets Planet Finance

HARDHAT

The rewiring

Egypt’s contracting market is being rewired around three structural shifts that together describe the end of the “build-only contractor” era, executives at major firms tell EnterpriseAM. First, large contractors are flipping their order books from government work toward private-sector industrial, logistics, and real estate projects. Second, the OECD has formally named the operations-and-maintenance (O&M) budget gap that’s been hollowing out the contracts that should sustain assets after construction — and that gap is already trapping contractor liquidity at flagship projects like Abu Rawash. Third, geographic expansion into Africa has shifted from a diversification play to a financing-led survival tactic. The slowdown in national projects, driven by the EGP 1 tn public spending cap, is making the rewire structurally permanent.

Egypt’s infrastructure management has a serious accounting blind spot, the OECD said in a recent report (pdf). “The lack of sufficient budgeted operational expenditure (opex) by public entities, including state-owned enterprises and holding companies involved in infrastructure has contributed to the deterioration of assets,” the report notes, adding that asset maintenance is often funded through sovereign debt while depreciation is typically not recorded in the government’s operating statements. The OECD also flagged the absence of lifecycle costing, saying “enhancing operational expenditure planning” for public entities and SOEs is critical to maintaining infrastructure assets and preventing their deterioration and “increased ad hoc pressure on state budget.”

The liquidity trap

The government has begun folding long-term operations and maintenance clauses into contracts — but selectively, and mostly for major tech-heavy projects, founder and chairman of Redcon Construction Tarek El Gammal tells EnterpriseAM. These include smart transport projects such as the monorail, the metro, and the high-speed rail network, where operators carry strict legislative and technical responsibilities to keep the assets safe and running. That is why the state has required extended maintenance contracts with global and local consortia, including Siemens and Alstom.

The real problem is whether the state can keep paying. Contractors face a liquidity trap on more standard infrastructure assets, El Gammal says, pointing to major wastewater treatment projects including the Abu Rawash plant, whose operations and maintenance were awarded to a consortium of Orascom Construction and a Spanish firm. “The problem with projects like Abu Rawash and others is that [contractors] secured O&M contracts, but did not receive [their dues] for two or three years,” El Gammal says. The delay speaks directly to the OECD’s warning that under-budgeted opex at public entities can contribute to asset deterioration and create ad hoc pressure on the state budget.

For new projects, the workaround is taking shape through take-or-pay contracts under the amended PPP framework. Desalination plants are the prototype, El Gammal says. “The new system has eased cost pressures on contractors and no longer ties up their liquidity for long periods. The sovereign guarantee is now granted only against the value of the monthly service purchased, not the massive construction cost of the project, making these projects bankable.”

The order-book flip

Redcon Construction was previously 80% government work and 20% private-sector projects — the coming period will see the opposite, El Gammal says. El Hazek Construction is already there: private-sector projects now account for 90% of the company's portfolio, Business Development Director Karim Hussein tells us. The pattern is structural, not anecdotal.

Contractors are also leaning harder on contract discipline to hedge against market volatility. Hussein stresses the need for explicit clauses compensating for raw material price differentials. “The contractor will certainly not bear the risk alone,” he says. To offset the slowdown in government awards, contractors are turning more aggressively at home toward industrial, logistics, and private real estate projects, El Gammal says — the main drivers of demand and the safer alternative for keeping pipelines moving.

REMEMBER- Mohamed Sami Saad, head of the Egyptian Federation for Construction and Building Contractors, recently told EnterpriseAM that the federation advises contractors “to move from contracting into maintenance and operations. Construction will slow, but maintenance and operations contracts are sustainable and include large amounts over long periods.”

Africa as financing-led survival

Geographic expansion abroad is the bigger lifeline. That is already showing up in the record numbers posted by major players including Orascom Construction, whose projects under execution climbed to USD 9 bn, driven largely by geographic diversification outside Egypt.

The rules of the game in Africa have changed. Governments there are no longer looking for a build-only contractor, but for consortia that can bring financing with them, Egyptian African Arab Development Co. CEO Reda Boulos tells EnterpriseAM. “The pivot to Africa is no longer theoretical. The slowdown in the national projects cycle at home, and the growing need for FX revenues, have made African expansion for many major contractors — particularly EPC players — a survival strategy and a necessary path to growth,” Boulos says.

The challenge now is not finding projects, but “aligning financing, execution capacity, local partnerships, and political support into one bankable structure,” he adds. In the absence of a well-capitalized Egyptian export credit institution, that means connecting Egyptian contractors with international and Arab financing institutions to present African governments with full-package offers.

What’s next

Who comes out on top in this next phase will not be contractors waiting for government awards, but those who finance, operate, and structure around tighter public spending. Survival and growth will go to companies that can engineer complex financing alliances to secure African contracts — and to those staying one step ahead at home, either by protecting margins in private industrial and logistics projects through tighter hedging clauses, as El Hazek is doing, or by securing O&M contracts with protected payment structures such as take-or-pay to avoid the Abu Rawash-style liquidity trap.

Tags:

construction Hardhat infrastructure

CALENDAR

2026

JUNE

16-18 June (Tuesday-Thursday) AFA International Annual Fertilizer Conference & Exhibition, Nile Ritz-Carlton, Cairo.

23-25 June (Tuesday-Thursday): The Big 5 Construct Egypt, Egypt International Exhibition Center, Cairo.

23-25 June (Tuesday-Thursday): Watrex Expo, Egypt International Exhibition Center, Cairo.

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

10-12 September (Thursday-Saturday): Egyptian Entrepreneurship Sector Diagnostics Report Summit, El Gouna.

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.

26-28 October (Monday-Wednesday): IEX Egypt, Egypt International Exhibition Center, Cairo.

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

DECEMBER

7-10 December (Monday-Thursday): Food Africa, Egypt International Exhibition Center, Cairo.

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.

4Q 2026: Banque du Caire IPO

2027

16-18 January (Saturday-Monday): Agri Expo, Cairo International Convention Center.

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily