A look at next fiscal year’s budget

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WHAT WE’RE TRACKING TODAY

ACUD to offer second phase of new capital’s development in March

Good morning, friends. We have made it to the end of one very busy week packed with diplomacy developments. In today’s issue we have a little sneak peek into next fiscal year’s Public Government Budget, fresh details on Al Ahly Sabbour’s long-awaited IPO, Qalaa Holdings’ 3Q 2024 earnings, and the ins and outs of how Egypt’s M&A market fared in 2024.

BUT FIRST- President Abdel Fattah El Sisi has reportedly opted to stay away from the White House as long as the Trump Administration keeps pushing the displacement agenda, Reuters wrote. US President Donald Trump had invited El Sisi to visit and it was reported that Foreign Minister Badr Abdelatty’s visit to the US capital earlier this week was to set the stage for El Sisi’s visit, Trump continuing to push Egypt and Jordan to take in displaced Gazans appears to have changed the plan.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 18°C and a low of 10°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 18°C and a low of 11°C.

And over the weekend, expect to see a high of 21°C and a low of 10°C in the capital.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

WATCH THIS SPACE-

#1- Phase two of the new capital’s development will be offered to a French investment consortium in March, Administrative Capital for Urban Development (ACUD) Chairman Khaled Abbas told a meeting of the Egyptian Businessmen’s Association yesterday, according to Asharq Business.

Better late than never: Abbas said last March that ACUD planned to start construction on the second phase of the new administrative capital early this year at a cost of EGP 240 bn (c. USD 4.8 bn at the time). ACUD had previously penciled in a 2Q 2024 or 3Q start at the latest.

We haven’t heard much about the project’s second phase since last March, when we got word that three industrial developers had submitted offers for 1 mn sqm plots included in the project’s second phase. ACUD also that month signed a shareholders’ agreement with French IT giant Atos to set up a JV to manage and operate smart tech services in the new capital.

ALSO- The new capital’s spanking new airport will officially open its door in April, Abbas said.

#2- Local fintech giant Fawry will give its clients the chance to invest in gold and EGX-traded stocks, CEO Ashraf Sabry said during a presser attended by EnterpriseAM. Fawry will serve as a platform for some of its partners with gold and stock market funds.

#3- Oracle to roll out AI and tech training program across the region: US technology giant Oracle is set to train 350k people in AI and cloud technologies in Egypt and five other Middle Eastern countries through its Oracle MyLearn platform, it said in a statement. The multi-year program — which will be delivered in partnership with the public sector — will offer training in several technologies, including Oracle Cloud Infrastructure, AI services, DevOps, and Oracle APEX.

The bigger picture: The initiative will also target the UAE, Saudi Arabia, Qatar, Morocco, and Jordan as the company looks to meet growing regional demand for Oracle Cloud and support the Middle East’s AI economy, which is expected to reach USD 320 bn by 2030, according to the statement.

This is good news for the government’s digital exports push: The government wants to see digital exports bring in USD 9 bn into the economy annually as of 2026 and then up to USD 13 bn by 2030. We’re yet to hear the most recent figures for 2024, but Egypt’s digital exports brought in USD 6.2 bn in 2023, up 26.5% y-o-y from 2022. The figure includes outsourcing exports — think call centers and human resource centers — which accounted for over half of the digital exports in 2023, standing at USD 3.7 bn, up 54% y-o-y.

#4- Capmas’ Egyptian Economic Consensus will be out before the end of the fiscal year, according to a statement from the Planning and International Cooperation Ministry. The release will mark the first economic census released by the state statistics agency since 2020.

The census will have some notable additions this time round, with the report including data on the green economy, industrial zones, outsourcing, and e-commerce for the first time.

HAPPENING TODAY-

The Businesswomen of Egypt 21 Association will kick off its annual conference today, with the five-day event set to take place across venues in Cairo, Luxor, and Aswan, according to a statement. This year’s conference is being held under the theme of Megatrends Shaping Women’s Economic Potential and will host delegations from across the world.

CIRCLE YOUR CALENDAR-

Exploring business potential between Egypt and Switzerland: The Egyptian-Swiss Business Circle and Kickstart Innovation are hosting a series of online events on 20 February under the theme Innovate Together: Business Opportunities Between Egypt and Switzerland. The events aims to strengthen business ties between the two nations, bringing together startups, investors, and public and private players.

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

THE BIG STORY ABROAD-

The war in Ukraine is in the spotlight this morning, as an unexpected rapprochement between the US and Russia opens the door for peace talks.

Russo-Ukrainian talks to kick off: US President Trump agreed — in his first publicly announced phone call with Russian President Vladimir Putin — to start negotiations aimed at ending the war “immediately” and reaching a long-term settlement. The two presidents are set to meet later in Riyadh to iron out the details, Trump added.

Blindsiding allies: The announcement came hours after US Defense Secretary Pete Hagseth told the Nato that Ukraine’s aims to join the alliance are “unrealistic,” conceding that the country will probably have to accept losing territory.

Ever the businessman: The US also presented Ukraine’s president Volodymyr Zelenskiy with an economic partnership agreement, during a visit by Treasury Secretary Scott Bessent to Kyiv. Zelenskiy said the talks will include “Ukraine’s potential in natural resources,” a particular interest for Trump, who said earlier he would like to tap into Kyiv’s critical minerals as well as open its markets to US energy exports in exchange for military and economic support. (NY Times | Bloomberg | FT | Reuters | CNN | Semafor)

Tariffs push not slowing down: Trump could sign his reciprocal tariffs today, ahead of India’s Prime Minister Nerandra Modi landing in Washington, where the two are scheduled to discuss trade concessions to spare India potential tariffs. (CNBC)

CLOSE TO HOME- Israel is reportedly pushing to retain a number of positions in Lebanon after the US shot down a request to keep most troops in the country in violation of the ceasefire agreement with Hezbollah. (Bloomberg)

Somabay proudly hosts the World Aquatics Open Water World Cup for the third consecutive year, reinforcing its status as a top watersports destination. The training camp will run from 18-22 February at Somabay’s state-of-the-art OneFlow Aquatics Centre, preparing athletes from 21 countries for the competition. From 21-22 February, they will compete in three races, further cementing Somabay’s appeal for international swimming events.

Sneak peek into Egypt’s General Government Budget for FY 2025-26

Fresh details on the General Government Budget for FY 2025-26: The General Government Budget is set to rise to somewhere in the vicinity of EGP 8 tn in the fiscal year 2025-2026, up from EG P 6.6 tn in the current fiscal year, as the Madbouly government looks to incorporate additional state economic bodies’ budgets into the budget, a government source told EnterpriseAM. The addition of these new entities is also expected to increase the government’s overall public revenues, the source said.

REMEMBER- The government last year amended the Unified Budget Act to allow for the budgets of all 59 of the state’s economic bodies and the state budget to be presented in the General Government Budget — a consolidated budget that would help improve the state’s financial indicators by accounting for the entirety of the state’s revenues. This year’s General Government Budget presented 40 economic bodies’ budgets, with the government planning to incorporate the remaining economic bodies’ budgets into the budget gradually over a five-year period.

It remains unclear which entities are set to be incorporated into the budget next year, with our source saying that this would depend on the procedures of the committee formed to restructure economic entities. The goal is to provide a better picture of the government’s overall budget, the source added.

WHAT THE NEW BUDGET COULD ENTAIL-

#1- The budget pencils in growth of around 5-5.5%, reduced public debt, and a primary surplus amounting to approximately 4% of GDP, another source told EnterpriseAM. The Planning Ministry projects GDP growth of 4.0% for FY 2024-2025 and the government is estimating a primary surplus of 3.5% for the current fiscal year.

This is higher than what international institutions are expecting: The IMF has recently slashed next fiscal year’s growth forecast by 1.0 percentage point and now expects the economy to grow 4.1% in line with the revised World Bank projection of 4.2%, down 0.4 percentage points from last summer’s projections.

#2- The government is also working on reducing the amount of funds allocated for fuel subsidies from the current fiscal year’s EGP 150 bn through issuing long-term contracts and purchasing shares of foreign oil and gas partners’ output. The upcoming fiscal year is still set to include around three new fuel price hikes as part of the Madbouly government’s plan to phase out fuel subsidies entirely by March 2026, as planned.

#3- The move to cash subsidies may wait another year: It remains unclear whether or not the government will move to replace in-kind subsidies with cash subsidies, with the National Dialogue calling for postponing the plan for an additional year until inflation levels decrease significantly, the source said.

#4- Public investments to see more austerity? The government is planning to further cut down public investments and is set to, instead, rely on self-financing through various entities and limit spending to highly urgent projects or those already nearing completion, our sources said. Private sector investments will also be encouraged in several sectors to help facilitate this, they added.

REMEMBER- The Finance Ministry introduced an EGP 1 tn public investment cap for all state entities to help create space for private players.

The priority sectors for the government will include education, healthcare, and the Decent Life program, the sources said.

A NEW APPROACH TO PUBLIC DEBT-

New public debt policy document to be launched? The Finance Ministry is looking to launch a new public debt policy document by the end of March, in which it will outline its goals and plans for domestic and foreign debt, debt offerings, and a framework for green bonds, sukuk, and international bonds, a government source told us last month. This comes as part of efforts to provide investors with a clear view of Egypt’s international debt offerings and the government’s plans to return to the international debt market.

What it could bring: With the new policy, the government would look to focus its efforts on extending maturities through diversifying debt instruments and reducing overall debt. The strategy also includes keeping external debt for state budget bodies at USD 79.1 bn, unchanged from September 2024. The government ultimately aims to reduce external debt by USD 1-2 bn in the medium term, one source said, adding that all entities have submitted their medium-term budget plans alongside the current fiscal year’s budget.

REMEMBER- Egypt’s foreign debt rose by 1.5% q-o-q to USD 155.2 bn during the first quarter of FY 2024-25, up from the USD 152.9 bn recorded at the end of FY 2023-24. Medium- and long-term debt accounted for some 82% of the country’s total foreign debt with USD 127.5 bn, while short-term debt made up the remaining USD 27.7 bn.

INTRODUCING A THREE-YEAR BUDGET-

The government is currently working on preparing the budget for FY 2025-26, all while preparing a comprehensive three-year budget with a financial ceiling that can only be exceeded in exceptional cases, one of the sources said. Government entities will also submit another budget covering FY 2026-27 to FY 2029-30. Ministries will be given cabinet-approved financial ceilings that can’t be exceeded. However, the ceiling would allow more flexibility for ministries to manage their spending by reallocating funds between different projects, provided that they remain within the allowed budget limits, according to the source.

What’s next: The Finance Ministry is looking to simplify the preparation of the General Government Budget and is working to set the maximum spending cap for each ministry this month before preparing the annual budget for submission to the House. Meanwhile, the Investment Ministry is working on coming up with a decent estimate of the country’s FX needs by meeting with the private sector, government bodies, and others. The hopefully more accurate figure is designed to help build a framework to manage the country’s FX resources in light of commodity imports, interest payments, and public debt.

Al Ahly Sabbour to select advisor for its planned IPO by June

Al Ahly Sabbour to tap advisor for planned IPO by June: Local real estate developer Al Ahly Sabbour plans to select an advisor for its planned IPO by June, Chairman Ahmed Sabbour said during a press conference attended by EnterpriseAM yesterday. The company is considering one of four potential investment banks for the role.

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

Remember: The developer is looking to list some 20-25% of its shares on the EGX — initial plans saw the company tapping an advisor early this year and wrapping up the needed listing requirements by March.

And we have a timeline … kind of. After selecting the advisor, the developer will need up to 10 months to fulfil the listing requirements, Sabbour said, without providing any details as to when we expect the company to make its EGX debut.

A long time coming: It was reported in October 2017 that the company would list its shares on the bourse within a year.

Who’s selling? The developer’s only shareholders — the Sabbour family and the National Bank of Egypt will offload a combined 25% in the company to new shareholders, Sabbour said, adding this isn’t final. The Sabbour family owns 60% of the developer, while the National Bank of Egypt owns the remaining 40%.

Why go public? The IPO is expected to strengthen the company’s financial position and support its local and regional expansion, which requires capital increases in line with the size of its projects, Sabbour said. The move will also offer more shareholders more flexibility to either increase or decrease their holding in the company. Additionally, as a family-owned business, listing on the EGX would ensure its continuity as management transitions across generations, he explained.

Capital increase incoming: The developer plans to raise its issued and pain-in capital by EGP 250 mn to reach EGP 550 mn by the end of the year, he said. “The planned capital increase has nothing to do with the IPO. The decision to hike the capital was taken a while ago to line up with our local and regional operations,” he said.

What does the company have in store for 2025? Al Ahly Sabbour will invest EGP 10 bn to complete the construction of some of its projects this year, Sabbour said, adding that the company has a sales target of EGP 33 bn for the year.

And more to come: The developer has two new projects in the pipeline — the EGP 10 bn second phase of its Summer Vibes North Coast project, which is expected to bring in EGP 21 bn in sales, and the EGP 2 bn new phase of its AT East project in Mostakbal City, which is expected to bring in sales of EGP 5.5 bn..

And a Saudi partnership in the pipeline: Al Ahly Sabbour is in talks with a Saudi real estate developer to jointly develop two new projects, one in East Cairo and another in Saudi Arabia. The two sides are expected to reach an agreement this year, Sabbour said without naming the Saudi developer.

Qalaa Holdings’ top line rises 75% y-o-y in 3Q 2024 to EGP 37.6 bn

Qalaa Holdings’ revenues rose 75% y-o-y in 3Q 2024 to EGP 37.6 bn, driven by the strong performance of subsidiary Egyptian Refining Company (ERC), according to a statement (pdf). The company’s bottom line, meanwhile, fell 94% y-o-y to EGP 114.5 mn during the quarter, with the release citing the firm’s sale of APM in 3Q 2023 as the driving factor for the dip.

Nearly all of the company’s subsidiaries saw their income increase for the quarter, with ASEC Holding being the only subsidiary to post a loss. ASEC saw its net loss contract to EGP 191.3 mn in 3Q 2024, down from EGP 556.5 mn in the same period the year before.

The other subsidiaries: ERC reported a net income of EGP 173.3 mn for 3Q 2024, a stark reversal from its EGP 362.5 mn loss recorded in the same period in 2023. Dina Farms’ net income rose 115% y-o-y to EGP 24.1 mn on the back of improved performance across all divisions. TAQA Arabia, meanwhile, reported 8% y-o-y growth in its net income, reaching EGP 213.5 mn, thanks to a strong performance by its gas subsidiary.

What they said: “Qalaa’s resilient performance during the quarter comes as the domestic economy continues to face a challenging period,” chairman and founder Ahmed Heikal said in the press release, adding that “difficulties faced at home are being further exacerbated by the current state of global macroeconomic uncertainty, as well as the armed conflicts taking place around us.” Still, Heikal noted, “Qalaa remains well-positioned to overcome these challenges, thanks to our resilience, flexibility, and efficiency, which are ingrained into the core of our DNA.”

The company’s plans to pay off ERC’s outstanding debt by the end of 2025 are going forward as planned, noted Qalaa Holdings co-founder and managing director Hisham El Khazindar. He added that “ERC remains on track to fully settle its senior debt by 4Q 2025, after which the company may start distributing dividends. We remain committed to reducing Qalaa’s risk levels and maintaining a healthy financial position going forward.”

CORRECTION: The story was amended on 15 February, 2025 to delete the incorrect reference to ASEC Holding selling APM in 3Q 2023. The entity that sold APM was ASCOM.

Egypt’s Semadco wants to set up 500 MW of renewables projects to feed its ammonia plant

Semadco is one step closer to bringing its Suez ammonia factory to life: State-owned El Nasr for Fertilizers & Chemical Industries (Semadco) is gearing up to set up a wind farm and solar power stations with a combined capacity of 500 MW to power its new green ammonia factory in Suez, Al Mal reports, citing sources it says have knowledge of the matter. The company has reportedly requested a plot of land from the Electricity Ministry for the renewables project, and the ministry is expected to allocate land for the wind farm before year-end.

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

It’s been a long time coming: We first heard of the green ammonia project in 2019, after Semadco reportedly inked an MoU with clean energy developer Benchmark Power International to build a USD 600 mn ammonia factory in Suez, with Semadco set to provide the land on a usufruct basis.

The project could be worth more than we thought: The green ammonia plant is being set up with USD 700 mn worth of local and US investments, according to Al Mal. The foreign investor will also oversee financing for the solar and wind facilities.

The blueprint is complete: A complete plan for the project has been devised and the needed equipment has been determined for importation, the source said.

Export infrastructure is on the agenda: The project involves the construction of a 10 km pipeline extending from the factory to Suez’s Adabiya Port to export the produced ammonia to foreign markets.

Egypt’s M&A market logs more transactions, but with smaller checks in 2024

Egypt’s M&A landscape was marked by a high-volume of smaller-value transactions last year, with inbound cross-border transactions driving much of the activity, according to Baker Mckenzie’s latest r eport (pdf).

The number of transactions rose 27.3% y-o-y, totaling 177 in 2024, while the combined transaction value was down 14.2% y-o-y to USD 3.4 bn — likely as a direct fallout from the float of the EGP, Managing Partner at Helmy, Hamza & Partners, Baker McKenzie Cairo Mohamed Ghannam said.

The average ticket size shrank to USD 20.5 mn in 2024, down from USD 30.4 mn 2023. September was the busiest month of the year in terms of volume (29 transactions), while June topped the list in terms of value (USD 961 mn).

Cross-border activity drove much of the momentum. The rise in total transaction count was driven by both a 25% uptick in cross-border M&As (105) and a 31% increase in domestic transactions (72). However, in terms of value, domestic transactions saw a 61% y-o-y drop clocking in at USD 727 mn, while cross-border M&As totaled USD 2.8 bn, up from USD 2.3 bn in 2023.

UAE players were the most active foreign buyers of Egyptian companies in 2024, closing 15 transactions, followed by the US (10) and Saudi Arabia (8). Inbound transactions dominated the country’s cross-border M&A scene last year with 89 transactions worth USD 2 bn. The material industry captured most of this volume with 14 transactions, followed by the financial sector (13) and the advanced tech sector (10). In terms of value, the energy and power sector was crowned king with transactions worth USD 1 bn.

Saudi Arabia emerged as a top destination for Egypt’s outbound M&A investments, with five transactions closed last year, followed by Jordan (3) and the UAE (3). Within outbound flows, the financial sector led in terms of transaction volume (5), while real estate dominated in terms of value, with agreements totaling USD 828 mn. Outbound transactions accounted for only 15% of Egypt’s aggregate cross-border transactions with 16 M&As totaling USD 835 mn in 2024.

Bucking the trend globally: The global M&A transaction count was down by 13.7% y-o-y last year. Transaction value saw a 9.7% y-o-y increase in value, as investors prioritize larger, big-ticket sales.

Regionally, it was a different story: The Middle East saw a 9% y-o-y dip in transaction count during 2024 to 1.2k, while transaction value was mostly unchanged y-o-y at USD 87.2 bn.

Sokhna Industrial Zone to welcome new factories with USD 3 mn in investments

INVESTMENT-

Sokhna Industrial Zone to welcome two new factories worth USD 3 mn — two textile manufacturing and printing factories in the plug and play factory area, according to a statement from the SCZone. The first factory will manufacture prayer mats, velvet fabrics, and woven fabrics with investments of USD 2 mn and an export target worth USD 6 mn in 2025. The second, USD 1 mn factory will also produce fabrics, with the facility targeting USD 4 mn worth in exports this year.

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

M&A-

Fintech giant Fawry acquired a majority stake in local hospital and medical institutions manager Code Zone, part of a wider push to snap up stakes in startups that offer complementary services, CEO Ashraf Sabry said during a presser during which the company launched Fawry Business.

Fawry Business? The new platform aims to help local companies with their digital transformation. It offers a system for managing payments and e-receipts, loans for SMEs, and a system for managing salaries, according to a press release (pdf).

EXPANSION-

Mobica eyes expansion to KSA and Oman: Mobica Group is exploring agricultural investments in Saudi Arabia and Oman, with plans to invest USD 50 mn to cultivate 5k feddans in Saudi Arabia, CEO Mohamed Farouk told Asharq Business. The project will be funded through the group’s newly-launched USD 100 mn fund.

AUTOMOTIVE-

Al Mansour Auto eyes Chinese microbus venture: Al Mansour Automotive is considering entering the local microbus market by acquiring local agency rights for an unnamed Chinese automaker, Al Mal reports, citing sources it says are in the know. Al Mansour — which is the exclusive local agent for MG, Chevrolet, and Opel — is reportedly looking to make a foray into the new segment in a bid to capitalize on the production capacity of its planned Sixth October factory as well as to align with the state’s efforts to localize the auto industry.

REMEMBER- Al Mansour Auto and Chinese state-owned SAIC are gearing up to establish a USD 135 mn factory in New October City to locally manufacture MG vehicles.

TECH-

E-Finance + eHealth to help upgrade, digitalize the Universal Health Ins. System: State-owned fintech giant e-Finance and its sister company eHealth will work together to link the Universal Health Ins. System with social protection systems under an MoU they inked with the Social Solidarity Ministry and the Universal Health Ins. Authority (UHIA), according to a statement (pdf). eHealth also signed an agreement with UHIA — its parent company — to provide the system with operational support and digital solutions.

Remember: First announced in 2016, the Universal Health Ins. System is designed to provide comprehensive healthcare to all citizens, regardless of financial capacity to pay, while linking up healthcare providers through a digital backend storing patients’ medical records.

DEBT-

CRC lands EGP 1.8 bn loan agreement with CIB: The Construction & Reconstruction Engineering Company (CRC), a subsidiary of real estate company Dorra, lined up a EGP 1.8 bn loan with the CIB for the construction of Ora Developers’ Solana project in New Zayed, according to a statement (pdf).

FINTECH-

Local fintech player MoneyHash is set to help Saudi ins. provider Tawuniya streamline its payment infrastructure, according to a statement (pdf). The partnership, revealed during the Leap 2025 conference in Riyadh, aims to improve Tawuniya’s payment success rates and reduce processing times. Tawuniya customers will gain access to several payment features such as one-click payments and flexible payment schedules.

STARTUPS-

#1- Nigerian fintech startup Raenest plans to step into the Egyptian and US markets this year after closing a USD 11 mn Series A round, it said in a statement (pdf). The company offers companies and freelancers a platform to “receive international payments, convert between currencies, operate a multi-currency wallet, while managing transactions seamlessly.”

#2- The Egyptian-Dutch Orange Corners program will be expanded to seven governorates, according to a Planning Ministry statement. The startup incubator will now operate in Luxor, Assiut, Alexandria, Menofia, Dakahlia, Kafr El Sheikh, and Beheira. The initiative aims to support 130 companies this year, having recently graduated 15 startups.

About the program: Orange Corners is a partnership between Egypt, the Netherlands, and private sector institutions including AlexBank and Madinet Masr. Since its launch in 2021, it has supported over 115 startups — with 58% being women-led — across sectors like agriculture, waste management, health, education, e-commerce, and fintech.

Chinese tech stocks log big gains riding on DeepSeek’s historic debut

China’s tech stocks rallied in February as DeepSeek hype fueled investor appetite: Chinese tech stocks have been riding a wave of investor enthusiasm over the past month, with shares in some of the country’s biggest tech names rising on the back of last month’s unveiling of DeepSeek’s latest AI model that performed on par with its American rivals — but for a fraction of the development cost — writes the Financial Times. For many investors, DeepSeek has proved that Chinese tech companies can challenge US’ dominance in the sector, leading to bullish sentiment that has pushed China’s tech-heavy indices on an upward path.

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

Chinese tech indices have been performing especially well in comparison to their US counterparts: The Hang Seng Tech Index of the 30 largest Hong Kong-listed tech companies — including many from the mainland — was up around 25% from its 2025-low on 13 January and performing better than its US peer, the Nasdaq 100, which ticked up 1.9% over February.

Some Chinese stocks have seen their share price increase nearly 50%: Zooming in, the biggest seven US tech conglomerates inched down 0.5% collectively over the last month, while Chinese tech firms have seen their shares skyrocket following DeepSeek’s dramatic debut. Alibaba made the biggest leap, gaining 49% in value in the past month, bolstered by reports that Apple is considering partnering with the e-commerce giant to roll out AI-powered features for iPhone users in China. Other now global household names saw significant gains, including automaker BYD with a 40% increase over the past month and Xiaomi with a 31% increase in share price.

This is all happening as US tariffs on Chinese products come into effect: Many market observers had predicted a rocky period ahead for Chinese stocks with US President Donald Trump’s threats and now imposition of a 10% levy on incoming Chinese goods — all USD 450 bn of them. However, investor appetite for the country’s tech sector and the expectations of policy support seem to have kept the country’s stock exchanges comfortably in the green, with the mainland’s CSI 300 up over 4%.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning — Japan’s Nikkei is up 1.1%, the Shanghai Composite is up 0.1%, and the Kospi is looking at gains of 1%.

EGX30	29,662	+0.3% (YTD: -0.3%)
USD (CBE)	Buy 50.56	Sell 50.70
USD (CIB)	Buy 50.57	Sell 50.67
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,386	-0.3% (YTD: +2.9%)
ADX	9,659	+0.2% (YTD: +2.6%)
DFM	5,304	-0.6% (YTD: +2.8%)
S&P 500	6,052	-0.3% (YTD: +2.9%)
FTSE 100	8,807	+0.3% (YTD: +7.8%)
Euro Stoxx 50	5,406	+0.3% (YTD: +10.4%)
Brent crude	USD 74.96	-2.7%
Natural gas (Nymex)	USD 3.57	+1.3%
Gold	USD 2,929	-0.1%
BTC	USD 97,821	+1.5% (YTD: +4.8%)

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 3.5 bn (5.6% below the 90-day average). International investors were the sole net buyers. The index is down 0.3% YTD.

In the green: Credit Agricole (+5.0%), GB Corp (+3.5%), and Palm Hills Development (+3.1%).

In the red: Abu Qir Fertilizers (-2.6%), Fawry (-2.2%), and Juhayna (-1.6%).

My Morning Routine: Ibrahim Sagna, executive chairman at Silverbacks Holdings

Ibrahim Sagna, executive chairman at Silverbacks Holdings: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Ibrahim Sagna (LinkedIn), executive chairman at Silverbacks Holdings.

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

My name is Ibrahim Sagna, pronounced “Sanya.” It’s a Senegalese name that people often mispronounce as Sagna, so I try to make it easy for them by saying, “You know lasagna? Just remove the ‘la’.” Of course, then people tend to fixate on lasagna — which actually helps make sure they don’t forget my name.

I’m an investor by training. My focus is on three key sectors — technology, sports, and entertainment — all of which are areas that remain underserved in Africa and the Middle East. I believe these industries have the potential to redefine the region’s position on a global scale.

In practice, my job as executive chairman comes down to three things — aligning management with the board’s vision, maintaining strong investor relationships, and evolving the firm’s long-term strategy. At its core, my role is about being a dream builder — using decades of investment experience to help founders scale their vision into something global.

The firm I lead is called Silverbacks Holdings, which takes its name from the elder and leader within a gorilla tribe — a reference to dominance and leadership. We focus on identifying dominant players in underserved markets and empowering them with capital, empathy, and authority. Our team, predominantly financially trained, has deep expertise in money management and capital, while our media and entertainment experience allows us to first understand a founder’s story and then amplify it. We’re also well known in the market and command respect, which we leverage to support the businesses we back.

I started Silverbacks Holdings with my own capital five years ago, investing a few mn USD alongside investment partners who are now part of our team. We later onboarded former clients, including CEOs of banks, insurance firms, and large construction companies and were backed by former athletes and Grammy-winning music superstars. These long-standing relationships, some spanning 15 to 20 years, backed us early in key bets.

We’ve had our share of “happy accidents” in the tech space — including an investment in Flutterwave which we exited (partially) after 36 months at a price 73x higher than our entry price. One of sub-Saharan Africa’s fastest-growing unicorns, Flutterwave scaled rapidly with strong VC backing and a founder experienced in payments. After that success, we set out to replicate it, first by taking a significant portion of our initial investment and reinvesting it. We allocated about 10% into GPs, and today, we’re invested in nine different funds.

Since that first happy accident, we’ve had six more — achieving seven exits in five years. Our lowest exit returned 1.36 times cash. Two exits exceeded 10 times cash. A notable recent gain came from another fintech company called Moove, which we backed when valuation was at USD 65 min. We took a partial exit shortly after Uber took a 10% stake and valued the business at USD 750 mn. While we don’t expect to replicate these returns indefinitely, we believe we’ve refined a strategy that differentiates between beta and alpha returns, with beta returns coming from backing emerging fund managers primarily in sub-Saharan Africa and parts of MENA.

This approach helps us uncover what we call “silverbacks” — the standout outliers. We allocate 80% of our capital to these silverbacks, ensuring we back the strongest players in the market, while the remaining 20% goes to GPs. Our assets under management started at USD 5 mn and have grown significantly, attracting reinvestors and, more recently, we are busy attracting institutional capital, including DFIs and corporate private equity.

We focus on four key sectors: sports, tech, entertainment, and a touch of fashion. Tech is the backbone, driving capital gains, while entertainment has proven highly profitable by backing producers who sell to platforms like Netflix and Amazon. Our niche in entertainment is cross-cultural storytelling, targeting massive, underexplored markets. A prime example is the Post Cards series, a Nigerian-Indian love story that resonated across both regions. Love stories, whether framed around culture, religion, or geography, are timeless, and securing distribution deals in FX provides a strong hedge against FX risks in markets like Egypt, Nigeria, and Turkey.

Sports, often overlooked as an asset class, is actually the premium tier of entertainment. This is especially true in the US leagues, where multi-bn USD broadcast rights generate guaranteed, long-term revenues. These rights are pre-sold for up to 11 years in advance, creating predictable cash flow. Major leagues like the NBA and NFL are expanding into Africa, bringing with them institutional investment and sponsorship money. Recognizing this, we co-founded a South African basketball team that went on to become a national champion, leveraging our early insight into the NBA’s expansion strategy.

We see sports as the antidote to AI’s growing influence. AI-generated content will dominate screens, just as processed food has overtaken natural diets. And just like the rise of organic food, live experiences — sports, concerts, theater — will become the “organic” alternative to digital saturation. Demand for real, in-person connection will surge, and live events will be priced like premium goods. This is why we’re doubling down on sports and entertainment — industries that aggregate communities in ways AI never can.

Beyond sports, we’ve created an ecosystem where tech, entertainment, and media investments feed into each other. Our portfolio founders cross-invest — tech firms sponsor our sports teams, while others back our entertainment ventures. In the Valley, our podcast with 3 mn views on YouTube, amplifies these ventures by providing a media platform for CEOs and founders. We’ve also invested in media platforms like Amaka, which started as a women-focused creator network and now amplifies content for a broad base of creators. Additionally, we work with Forbes local franchises in multiple languages to ensure our portfolio companies gain visibility across key markets.

The future of business isn’t necessarily written in the West — it’s being reshaped by regions like the Gulf, where Saudi Arabia, the UAE, and Qatar are investing bns into sports, media, and entertainment. The next 30 years will see power centers multiply, and the key is to own businesses that can tap into these recurring revenue streams.

Today, immigrants are building businesses for the diaspora — whether within their adopted countries or back home. This space is largely untapped, yet holds immense potential. We back founders who see these gaps, whether it’s a designer whose shoes now sell on Broadway or a beauty entrepreneur catering to underserved markets at Sephora. These businesses don’t need control-heavy investors; they need partners who bring financial expertise, governance, and authority — and then step back and let them do what they do best.

My morning routine is built around aligning my day with my obsessions. I wake up around 5:00am or 5:30am, and after the morning prayer, I ease into the day with coffee — always blended with butter, a habit I picked up a few years ago that boosts energy and curbs hunger — then head to a workout. When I’m in Cairo, I train at F45, a high-intensity mix of lifting and cardio that fits perfectly into my schedule since it’s never more than 45 minutes. On days I don’t go, I hit Gold’s Gym for cycling and weights. Throughout, I’m always listening to a podcast, making the most of that time by learning something new.

Podcasts have been a game-changer for me. I used to read a lot, but with ADHD, long-form reading requires breaks. Podcasts, on the other hand, allow for continuous learning. I divide my listening across three areas: investing, philosophy, and health. On investing, Ray Dalio and Robert Smith stand out, and I regularly tune into Capital Allocators, 20 VC, Invest Like the Best for insights from top investors. For philosophy, Naval Ravikant’s audiobook titled The Almanack is a must — his perspective on wealth, happiness, and peace has been transformative for me. On health, podcasts involving Peter Attia are eye opening, and Diary of a CEO has been producing good content lately.

I stay focused by constantly filtering — figuring out what not to do, which transactions to avoid, and which opportunities aren’t worth the time. To stay organized, I’ve surrounded myself with highly intuitive and structured people, most of whom are women. I believe intuition is the most reliable of human faculties — it sharpens with time, unlike physical strength or intellect. Yet, men are often conditioned to suppress it.

CALENDAR

FEBRUARY

13-17 February (Thursday-Monday): The 10th Annual Conference of the Businesswomen of Egypt 21 Association, the Arab League HQ, Cairo.

15 February (Saturday): The 14th annual conference of CFA Society Egypt, InterContinental Cairo Semiramis, Cairo, Egypt.

15-16 February (Saturday-Sunday): African Union Summit, Addis Ababa, Ethiopia.

17 February: (Monday): Cypriot President Nikos Christodoulides will visit Egypt to sign agreements to transport Cypriot gas to Egypt to be liquefied and exported.

17-19 February (Monday-Wednesday): Egypt Energy Show, Egypt International Exhibition Center, Cairo, Egypt.

18 February (Tuesday): Government to publish trade balance figures.

18-19 February (Tuesday-Wednesday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

20 February (Thursday): The central bank’s Monetary Policy Committee meets to decide interest rates.

20 February (Thursday): The Egyptian-Swiss Business Circle and Kickstart Innovation are hosting Innovate Together: Business Opportunities Between Egypt and Switzerland

21-23 February ( Friday-Sunday): The First Arab Fraud Combating Summit.

27 February (Thursday): Emergency Arab Summit on the Palestinian issue, Cairo, Egypt.

BP to bring the second well of its Raven natural gas project online, with additional production capacity expected.

Orascom Pyramids Entertainment to bring total investments in the Pyramids Plateau to EGP 1.5 bn.

Subscription period for Your Home in Egypt initiative opens.

MARCH

3 March (Monday): Central bank to publish foreign reserve data for February.

4 March (Tuesday): S&P Global to release Egypt’s PMI figures for March.

10 March (Monday): Capmas expected to release inflation data for February.

Arla Foods’ deadline for Domty acquisition offer.

Operation of phase one of the Amotope wind farm.

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

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

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

7-9 April (Monday-Wednesday): Narrative PR Summit launches 9th edition, Red Sea

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

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

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

MAY

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

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

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

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

JUNE

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

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

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting.

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

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

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

DECEMBER

25 December 2025 (Thursday): Monetary Policy Committee’s eighth meeting.

December 2025: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports’ Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

1H 2025: EGX launches a sharia-compliant sustainability index.

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

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

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

2027

20 January-7 February: Egypt to host the African Games

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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