Ain Sokhna is getting a USD 1.7 bn industrial complex

Wednesday, 26 Mar 2025

Ain Sokhna is getting a USD 1.7 bn industrial complex

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Today at a glance

Investment Watch

China’s Wu’an Xin Feng inks contract for USD 1.7 bn industrial complex in Ain Sokhna.

Privatization

IFC unveils list of airports to be developed through PPPs.

Capital markets

Beltone Holding closes first round of EGP 10.8 bn capital increase.

Healthcare

TMG, Alameda to set up EGP 5 bn hospital in Madinaty.

Fintech

Instapay will introduce transfer fees next month.

Energy

Egyptera pauses approvals for solar power plant grid connections until new regulations are in place.

Moves

Telecom Egypt taps its first woman chair, Lobna Hilal.

PLANET FINANCE

Retail investors pour USD 67 bn into US stocks as institutions retreat.

HARDHAT

Why are we falling behind the emerging market data center boom?

What We're Tracking Today

UNHCR stops support to refugees in Egypt

Good morning, friends. We have a busy issue for you this morning led by news of a USD 1.7 bn Chinese industrial complex, IFC announcing the 11 airports slated for development through PPPs, and Beltone Holding closing the first round of its capital increase.

So, when do we eat? Maghrib prayers are at 6:10pm in the capital, and you’ll have until 4:23am tomorrow to hydrate and caffeinate ahead of fajr.

PSA-

Private sector employees will have Saturday to either Tuesday or Wednesday off for Eid El Fitr depending on when Eid officially starts — aligning with the days off being given to the public sector. We’re still waiting for confirmation from the Central Bank of Egypt and the EGX to hear whether banks and the bourse will follow suit.

EnterpriseAM Egypt will be off for the whole of next week, but we will be back in your inbox bright and early on Sunday, 6 April.

WEATHER- It’s warming up in Cairo, with the capital in for a high of 33°C and a low of 21°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 18°C.

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

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

WATCH THIS SPACE-

#1- Minya could soon be home to a new USD 2 bn ready-made garment and textiles industrial zone, with Prime Minister Moustafa Madbouly directing that the utilities for the project be set up, Garment Export Council Chairman and Giza Spinning and Weaving CEO Fadel Marzouk told Al Arabiya. The project has already attracted the interest of more than ten Chinese and Turkish companies willing to commit investments to the project this year, Marzouk added.

#2- The UNHCR stopped “key-life saving support” to some 20k refugees in Egypt amid a fall in donor funding, the UN’s agency for refugees said in a statement. The agency will continue to deliver emergency procedures but will no longer help provide cancer surgery, chemotherapy, heart surgery, or chronic disease meds. With scores of refugees unable to afford treatment from the national health system, “many will die,” warned UNHCR Public Health Officer Jakob Arhem.

The slashing of US aid funding has made an existing funding crisis even worse. Last year, the agency received less than half of the USD 135 mn it needed to support the nearly 1 mn registered refugees in the country. And now with the Trump administration’s decision to pause all foreign aid and the likelihood of this returning in a comparative way looking slim, the UNHCR has lost a fifth of its total budget.

HAPPENING TODAY-

Thinking about a master’s in international management? The AUC Onsi Sawiris School of Business and Newton Education Services are hosting a virtual information session for the CEMS Master in International Management today at 1-2pm. The session — which is the last before the application deadline — will explore the program's structure, global network, interdisciplinary curriculum, and career prospects, with input from the program’s Academic Director Marina Apaydin, as well as a program alumnus Mohamed Bahaa. Find the link to register on the school’s LinkedIn page.

CIRCLE YOUR CALENDAR-

#1- Attention, budding fintech entrepreneurs. The application deadline for the Mint Fintech Hackathon is coming up quick, with the program set to close submissions on 5 April. Selected entrepreneurs will take part in four days of workshops, technical know-how, business mentorship, and networking with industry leaders, before pitching their ideas to a panel of judges. You can find out more and apply on Mint’s website.

#2- Scholarships down under. You can now apply for the Australian government’s master’s scholarship program Australia Awards. The scholarship program grants funding for citizens of certain African nations — including Egypt — to study climate change, agriculture and food security, mining and energy, foreign policy and international security, and gender, disability, and social inclusion. Applications are open until 30 April, and women, people with disabilities, and marginalized groups are encouraged to apply. You can find out more about the program here (pdf) and apply through the Australia Awards website.

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

CORRECTION #1- In a recent story about a planned USD 700 mn solar factory, we got a little lost in translation and mistakenly wrote that the company was called Xinyi Glass. The company is in fact called SBH Kibing Solar New Energy. The story has been amended on our website.

CORRECTION #2- In yesterday’s issue of EnterpriseAM, we incorrectly said that Orascom Construction built three 4.8 GW power plants in Egypt in collaboration with Siemens and Elsewedy Electric. Orascom built two 4.8 GW power plants with Siemens, while a third was built by Siemens and Elsewedy Electric. The story has been amended on our website.

THE BIG STORY ABROAD-

Russia and Ukraine have agreed to a ceasefire in the Black Sea, following days of US-backed talks in Riyadh, according to a White House statement. Ukraine said it would begin observing the maritime truce immediately, while Russia hinged its participation on lifting sanctions on agricultural exports and reconnecting key banks to SWIFT. (Bloomberg | BBC | CNN | New York Times | Reuters)

AND- Israel strikes Syria: An Israeli airstrike killed at least six people in southern Syria on Tuesday. The strike followed a reported exchange of fire between Israeli troops and militants near the border. (Reuters | AP)

AND IN THE BUSINESS PAGES- SAP dethrones Novo Nordisk as Europe’s most valuable company: German software company SAP has become Europe’s most valuable public company, overtaking Danish drugmaker Novo Nordisk, with a market cap of USD 342.4 bn. (CNBC | Reuters | Wall Street Journal | Bloomberg)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at why Egypt is falling behind the emerging market data center boom.

Tags:

UNHCR

Celebrate Eid with unforgettable moments at Somabay. From storytelling and upcycling to thrilling adventures, live music, and beachside yoga — there’s something for everyone. Join us for a season of joy, movement, and magic by the sea.

Investment Watch

China’s Wu’an Xin Feng signs contract for USD 1.7 bn industrial complex in Egypt

China’s Wu’an Xin Feng signed the contract for its USD 1.7 bn integrated metal industries complex in the Ain Sokhna industrial zone with the Madbouly government yesterday, according to a statement. The project will be set up over a five-year period and across two phases and once fully completed, it will offer 8k direct jobs.

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

What to expect: The complex will house nine industrial projects, two comprehensive service centers — one for R&D and one for solid waste recycling.

Phase one to be completed in 2027: The first phase of the project will include an auto parts factory with an annual production capacity of 230k tons, a home appliance metal components plant with a production capacity of 50k tons a year, and a standard fasteners project that produces 100k tons a year. The plants are expected to kick off operations early 2027. Meanwhile, a hot-rolled steel coils factory that has an annual production capacity of 2 mn tons will come online at a later time. All in all, the first phase of the complex will offer over 4.4k jobs.

As for the second phase, it will see the construction of an additional five more factories — a machinery components plant with a production capacity of 200k tons a year, a brake discs project that can produce 150k tons a year, a factory producing steel structures with a capacity of 100k tons a year, one for aluminum and magnesium alloy auto parts with a capacity of 20k tons a year, and one for cold-rolled steel coils with a capacity of 2 mn tons a year. The second phase will also see the construction of the two service centers.

The timeline: The factories — apart from the steel plant — will kick off trial operations in January 2029 and the cold-rolled steel facility is slated to launch trial operations in March 2030. This phase is expected to create around 3.6k jobs.

REMEMBER- The Chinese steelmaker first floated the idea for the complex late last year. Prior to that it inked an agreement with the SCZone to lease a plot of land to set up a USD 297 mn hot-rolled steel coils plant. It remains unclear if the project is the hot-rolled steel coil factory that will be set up in the industrial complex or a separate project entirely.

Part of a wider localization push: The complex includes a number of component factories that fit into the Madbouly government’s plans to localize a long list of industries.

Tags:

China industry investment watch Manufacturing Suez Canal Economic Zone

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Privatization

IFC unveils list of Egyptian airports to be developed through public-private partnerships

The IFC is out with the list of airports set for private investment: The International Finance Corporation (IFC) unveiled the list of 11 Egyptian airports slated for development through public-private partnerships (PPP) in a statement earlier this week. This comes following months of mixed reports on which airports would make the cut in the government’s plans to upgrade airport infrastructure and services with the help of private players.

Here’s the lineup:

Hurghada International Airport
Sphinx International Airport
Sharm El Sheikh International Airport
Borg El Arab International Airport
Luxor International Airport
Aswan International Airport
Sohag International Airport
Assiut Airport
Abu Simbel Airport
El Alamein International Airport
Marsa Matruh Airport

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

ICYMI- The IFC signed an agreement with the government earlier this week to advise on PPPs for the country’s airports, helping it set a strategy “for partnership development with the private sector in 11 airports across Egypt, representing a significant portion of the country’s domestic and international air travel.”

One airport is noticeably absent: Contrary to expectations, Cairo International Airport is not among the airports selected for the first phase of the PPP program.

Hurghada International Airport will serve as a pilot project for the program. IFC will help the government launch a tender to select a strategic private partner for maintaining, operating, and upgrading the airport. The Egyptian Holding Company for Airports and Air Navigation will maintain ownership of the airport, which is the nation's second-busiest by passenger volume and air traffic.

The program holds good potential for enhancing our tourism sector: “This program will help attract world-class investors to deliver modern, efficient airports that strengthen Egypt’s position as a global travel and trade hub,” said Sérgio Pimenta, IFC’s Vice President for Africa. “Enhancing Egypt’s airport infrastructure through public-private partnership will drive economic growth and boost connectivity in the country and across the wider region,” he added.

We already know global players are interested: Civil Aviation Minister Sameh Elhefny previously said that major global companies have expressed interest in managing Egyptian airports, including the three largest operators in Europe. Prior to that, Hassan Allam Holding and France’s Groupe Aéroports de Paris had submitted a proposal to manage and operate local airports.

Tags:

aviation International Finance Corporation privatization watch

Capital markets

Beltone Holding closes first round of blockbuster EGP 10.8 bn capital increase

Investors had a strong appetite for the first round of Beltone Holding’s blockbuster EGP10.75bncapital increase, according to a disclosure to the EGX (pdf). The rights issue of c. 5.4 bn shares was 92.11% covered by investors during the first phase of subscription, which ended on Monday. The total increase will see Beltone’s capital rise to EGP 21.7 bn, marking one of the largest ever capital increases on the EGX.

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

Information about the next subscription round will soon be made public once the financial services firm gets the thumbs up from the Financial Regulatory Authority, the statement reads.

The capital increase will support Beltone’s growth strategy to strengthen its market position, leveraging data science to expand its financial services and expand its product offerings. CEO Dalia Khorshid described the move as “a significant step in accelerating our data-driven strategy and sustainable growth” in a statement (pdf) announcing the increase in December. “By further leveraging technology and artificial intelligence, along with investing in human capital, we are committed to achieving a transformational impact in the financial services sector creating long-term value for our shareholders,” she added.

This is Beltone’s second big capital increase: Global and regional investors flocked to the firm’s EGP 10 bn capital increase in 2023. This came shortly after Abu Dhabi-based investment company Chimera Investments acquired 56% of the company in 2022 and recruited an all-new team of senior executives, led by Khorshid as CEO.

Beltone is starting the year on a strong footing, having recorded EGP 1.7 bn in net income during 2024, a 4.6x y-o-y rise, with a solid performance across both its non-bank financial institutions and investment banking platforms. Consolidated revenues were up 4x y-o-y for the year at EGP 7.2 bn.

Tags:

Beltone Holding capital markets financial services

Fintech

Instapay will introduce transfer fees next month

Instapay transfer fees come into effect on Tuesday, 1 April, the central bank’s digital payment platform announced yesterday. Transfers will be subject to a 0.1% fee, ranging from EGP 0.50 and EGP 20 per transaction. The fees will extend to balance inquiries and mini-statements, with users getting ten monthly fee-free inquiries beyond that they will be subject to a EGP 0.50 fee.

The platform clocked up 1.5 bn transactions in 2024, amounting to EGP 2.9 tn that was sent and received by the applications 12.5 mn users.

Instapay was launched in 2022, providing instant and secure payments between Egyptian banks, pre-paid cards, and mobile wallets. It was launched on the heels of the fintech boom that took place during the covid pandemic and has since played an important role in the central bank’s drive for financial inclusion.

REMEMBER- The CBE recently gave the green light to a number of banks to start accepting Egypt-bound remittances from abroad through Instapay as part of efforts to strengthen the infrastructure of electronic financial services.

Tags:

Fintech InstaPay

Healthcare

TMG, Alameda to set up EGP 5 bn hospital in Egypt’s Madinaty

TMG, Alameda team up to build a EGP 5 bn hospital in Madinaty: Local real estate giant Talaat Moustafa Group (TMG) inked a strategic partnership agreement with local healthcare services provider Alameda Healthcare to build a EGP 5 bn (c. USD 100 mn) 200-bed hospital in East Cairo’s Madinaty by 2027, according to a statement.

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

The details: Alameda will manage and operate the hospital, offering high-quality medical and healthcare services that aim to attract medical tourism.

REMEMBER- Egypt has been trying to position itself as a medical tourism hub to attract FDI and to open fresh FX revenue streams from patients from Africa, the Middle East, and Europe coming here for treatment on the back of our talented and well-trained medical staff and the competitive price point Egyptian hospitals can offer.

The first of many: The hospital is part of a broader plan between the two sides to develop and manage healthcare offerings within TMG’s urban developments in Egypt and abroad.

ADVISORS- Our friends at EFG Hermes acted as the exclusive financial advisor on the agreement.

The project comes as part of Alameda’s ambition expansion plan, to which the company had allocated some USD 245 mn back in June. The company plans to expand its footprint in Egypt and across the region through setting up new hospitals, acquiring existing ones or expanding its own hospitals.

Tags:

Alameda Healthcare EFG Hermes healthcare Talaat Moustafa Group

LEGISLATION WATCH

Egypt’s House grants Medical Liability Act final approval after lowering fines for medical error

MPs gave their final approval yesterday to the draft Medical Liability and Patient Protection Law after approving an amendment to lower fines for non-severe medical errors, bringing the range down to EGP 10k-100k from the previous EGP 100k-1 mn.

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

Why now? The decision comes after the Medical Syndicate argued that the previous fine range was too excessive for common medical mistakes. The bill aims to hold doctors accountable while ensuring that they are not unfairly penalized.

REMEMBER- The House gave preliminary approval to the draft Medical Liability Law earlier this week, revising the definition of gross medical error as severe mistakes causing harm, particularly under intoxication or neglect, differentiating errors from negligence. The bill also creates a liability committee and an ins. fund for damages.

False medical complaints could now lead to jail time: MPs also approved a new provision in the law that criminalizes false complaints against medical professionals. Under the law, anyone who files a complaint with malicious motives could face up to three months in prison, a fine of up to EGP 30k, or both. Lawmakers argued that stricter penalties would help prevent abuse of the complaint system and protect medical professionals. Between 80-90% of complaints against medical professionals are baseless, Medical Syndicate head Osama Abdel Hay told us.

The Medical Syndicate is happy with this final draft of the law, with Abdel Hay praising the law in its final form, saying that it now works in favor of the nation’s medical staff. The legislation will help ensure medical staff have a safe work environment, Abdel Hay told EnterpriseAM, adding that the syndicate had hoped that the fines on medical staff would be completely scrapped.

A long time coming: “We have been asking for this law for nine years now,” Abdel Hay said, adding that it was not right for a doctor to stand before the public prosecution — the new law will instead see doctors stand before a panel of three professors.

What’s next? The bill will now be sent to President Abdel Fattah El Sisi to be ratified and published as law.

Tags:

healthcare House of Representatives legislation Legislation Watch

Energy

Egyptera pauses approvals for solar power plant grid connections until new regulations are in place

Gov’t pauses approvals for solar grid connections: The Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) has temporarily halted the acceptance of requests to connect solar power plants to the grid until a regulatory framework for net metering and solar self-consumption is finalized, a government source told EnterpriseAM. Solar energy companies have expressed concern over the suspension, with several sources telling us the decision came out of the blue and wasn’t accompanied by a timeline for resumption.

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

The regs in the making: The upcoming regulations will include a requirement for storage batteries to constitute 10% of installed capacity, a measure aimed at enhancing added value and aligning Egypt with global solar energy storage trends, the government source said.

The impact is far-reaching: The suspension has left contracts signed by 270 registered solar companies and other unregistered service providers in limbo, with many already fronting the costs of solar panel imports, Beneshty Solar Chairman Romany Hakeem told us. Most of these imports are for large factories switching to solar energy as part of the state’s renewables push, he said.

“This [halt] has caused significant problems for solar energy companies, which have obligations and contracts with customers, including factory owners,” Cairo Solar said in a statement. The company has reportedly received “increasing complaints” from stakeholders surprised by the move, which it believes could deter private investment and lead to economic losses that are difficult to recoup.

Tags:

Egyptera electricity energy renewables

Moves

Telecom Egypt taps its first woman chair, Lobna Hilal

#1- Telecom Egypt welcomes its first woman chair: Telecom Egypt has appointed Lobna Hilal (LinkedIn) as the company’s new chair, succeeding Magued Osman, the company said in a press release (pdf). Hilal has been an independent board member since 2019 and brings more than three decades of experience in the banking sector to the role. She served as Deputy Governor of the Central Bank of Egypt for Monetary Stability Policies for two different terms — the first woman to hold the post.

What they said: “With a career dedicated to financial stability, banking reform, and economic development, I look forward to leveraging my experience to further strengthen Telecom Egypt’s position as a leading telecom provider,” Hilal said.

#2- The Export Development Bank of Egypt (EBank) named Mohamed Taha as its chairman, according to a disclosure (pdf) from the lender. Taha brings more than three decades of banking experience to the role, including senior posts at Bank ABC and Banque du Caire, as well as a background in treasury and investment management.

Tags:

Export Development Bank of Egypt moves Telecom Egypt

Also on our Radar

Egyptian fertilizer player Agro TH to set up EGP 5 bn plant

MANUFACTURING-

Agro TH to build EGP 5 bn fertilizer plant in Sadat City: Local fertilizer player Agro TH plans to establish its second factory in Sadat City in partnership with an Omani investor with an estimated investment of EGP 5 bn, Chairman Hilal Al Deeb told Al Mal. The plant, set for completion by 2028, will have an annual production capacity of 100k tons, with 15k tons earmarked for export to Sudan, the Democratic Republic of the Congo, Kenya, Tanzania, and Libya.

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

HOSPITALITY-

#1- Hospitality giant Hilton will set up the continent’s first Signia Hotel and Signia Residence in West Cairo’s Skywalk, according to a press release (pdf). The 200-key hotel will include restaurants, a fitness center, and a spa and it will house one of Cairo’s largest meeting spaces — a 5k sqm space. Meanwhile, the residence will house another 200 rooms.

#2- Holding Company for Tourism and Hotels eyes new hotels: The government’s Holding Company for Tourism and Hotels is working toward adding 3k keys to its portfolio within the coming three years, Hapi Journal reports, citing remarks made by Chairman Amr Attia. The company’s expansion plans include a 200 room extension at its Jaz Belvedere resort in Sharm El Sheikh, ongoing excavation work for the reopening of the five-star, 300-key Grand Continental in Cairo, 160-room and 90-room hotels in Ras El Bar, a three-star hotel in El Mahalla El Kubra, and another hotel in Port Said.

IPO WATCH-

Royal Home wants to make its EGX debut: Local home appliances manufacturer Royal Home plans to list 20% of its shares on the EGX within the next 18 months, company CEO told Al Borsa. The company aims to use the proceeds to raise capital and expand. Royal Home has tapped Themar Securities Brokerage to manage the offering.

EXPANSIONS-

Apex Pharma launches Saudi drug factory: Local pharma firm Apex Pharma kicked off operations at its new Saudi factory in King Abdullah Economic City, Chairman Magdy Elba told Al Arabiya. The facility has begun producing select medications while awaiting approvals to start Saudi market sales. Elba expects commercial sales to kick off after the Hajj season, with plans to manufacture 10-14 pharma products this year.

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ALSO ON OUR RADAR fertilizers Holding Company for Tourism and Hotels hospitality Manufacturing pharma tourism

PLANET FINANCE

Retail investors pour USD 67 bn into US stocks as institutions retreat

Retail investors are still doubling down on US stocks, pouring USD 67 bn into equities y-t-d, just shy of the USD 71 bn they invested in all of 4Q 2024, the Financial Times reports, citing VandaTrack data. The surge comes even as institutional investors pull back from the market amid growing fears of Donald Trump’s tariff threats and broader political uncertainty.

It’s become second nature: “Dip-buying has been an essentially foolproof strategy for four of the past five years,” said Interactive Brokers’ Steve Sosnick. “Doing something that works remarkably well for so long means you’re conditioned to stick with it.”

… plus: FOMO. Many investors are more afraid of missing a buying opportunity than suffering further declines, noted independent strategist Jim Paulsen. Despite a 2% drop in the S&P 500 and an 8% slide in tech stocks this year, retail investors have been net sellers on only seven trading days in 2025, according to Goldman Sachs.

Familiar names still dominate: Many continue chasing last cycle’s gainers, piling into the same high-flying names that led past rallies over the past two years but have taken a hit this year. “Retail investors tend to gravitate toward well-known stocks,” said one assistant law professor. Last week alone, they snapped up USD 3.2 bn worth of Tesla shares and USD 1.9 bn in Nvidia, JPMorgan data shows.

The dip-buying strategy has yet to reap any rewards: A JPMorgan model portfolio tracking retail’s money flows in the market indicates that retail investors have lost 7% of their capital this year — nearly double the losses made by the S&P 500 so far, Bloomberg reports.

Meanwhile, institutional investors are heading for the exits. March saw their “biggest ever” retreat from US equities, according to Bank of America.

Is this a red flag? “Back in 1999, when my housekeeper started asking which stocks to buy, that’s when things started to fall apart,” quipped one strategist.

MARKETS THIS MORNING-

Asian markets are still cheering the likelihood of a softer-than-expected tariff policy from the US, with Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng all up. China’s CSI 300 remained flat. Over on Wall Street, futures are also pointing towards more stability after stocks continued to gain ground yesterday, recovering from last week’s losses.

EGX30	31,762	-0.2% (YTD: +6.8%)
USD (CBE)	Buy 50.51	Sell 50.65
USD (CIB)	Buy 50.52	Sell 50.62
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,706	-0.6% (YTD: -2.7%)
ADX	9,342	-0.3% (YTD: -0.8%)
DFM	5,117	0.0% (YTD: -0.8%)
S&P 500	5,777	+0.2% (YTD: -1.8%)
FTSE 100	8,664	+0.3% (YTD: +0.6%)
Euro Stoxx 50	5,475	+1.1% (YTD: +11.8%)
Brent crude	USD 73.02	0.0%
Natural gas (Nymex)	USD 3.89	+1.3%
Gold	USD 3,054	0.0%
BTC	USD 87,419	-0.1% (YTD: -6.6%)

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 2.9 bn (17.2% below the 90-day average). Regional investors were the sole net sellers. The index is up 6.8% YTD.

In the green: Juhayna (+4.0%), Credit Agricole (+2.3%), and Madinet Masr (+1.8%).

In the red: Egypt Aluminum (-4.4%), Palm Hills Developments (-3.4%), and Emaar Misr (-3.4%).

CORPORATE ACTIONS-

#1- FRA greenlights Premium Healthcare’s massive capital hike: The Financial Regulatory Authority approved Premium Healthcare Group’s capital increase, according to a statement from the authority (pdf). The healthcare firm plans to boost its authorized capital to EGP 11.4 bn from EGP 315 mn currently and its issued and paid-up capital to EGP 2.4 from EGP 81.5 mn through issuing 22.8 bn new shares at a nominal value of EGP 0.10 per share.

#2- CIB will pay shareholders a dividend of EGP 2.5 per share for its 2024 earnings, according to an EGX disclosure (pdf).

#3- Credit Agricole’s General Assembly approved distributing a dividend of EGP 3.2 per share on its 2024 earnings, according to a disclosure to the EGX (pdf).

#4- Saib Bank lowers 2024 dividend payout: Saib Bank will distribute dividends of USD 0.52 per share to shareholders for its 2024 earnings, down from the proposed USD 0.6 per share, according to an EGX disclosure (pdf).

Tags:

capital markets equities Financial Markets Planet Finance

HARDHAT

Why is Egypt falling behind the emerging market data center boom?

The AI boom is driving data center investment in emerging markets, but Egypt is yet to see a real uptick in interest. The global demand for data centers is surging due to the expansion of data-intensive industries, such as AI, cloud computing, big data, and IoT, BMI Digital Infrastructure Analyst Niccolò Lombatti said in a webinar hosted by Fitch Solutions’ research unit BMI and attended by EnterpriseAM. This is pushing investors to explore emerging markets as attractive places to open up data centres, with the global cloud market projected to grow from USD 743.5 bn in 2024 to over USD 2 tn by 2030. But despite Egypt’s enviable location at the crossroads of Africa, Asia, and Europe, Egypt is yet to put itself on the map as an important data center player, despite making some progress early on.

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

Egypt is currently home to only 5.5% of the region’s data centres, with the country listed as having only 14 by the Data Center Map. Leading the Arab world is Saudi Arabia with 36 data centres and the UAE in second place with 32. Egypt even trails the tiny Gulf nation of Oman, which boasts 15 data centres to its name, despite its significantly smaller population. Egypt also trails many of its African neighbours, with South Africa leading the continent with 47 data centres, followed by Kenya with 18.

But why? On paper, the fundamentals look promising. Egypt has the potential to be a major data center hub due to its location at the crossroads of Africa, Asia, and Europe, strong subsea cable connectivity, ample land to use, but the sector has been slow to take off due to infrastructure gaps, high operational costs, and other challenges that have put off some investors.

While some have been put off, there is still considerable interest in Egypt. Among the big-ticket projects in the pipeline is Intro Group subsidiary Intro Technology and Omani data center leader Oman Data Park’s Kemet Data Center project that is set to launch its first phase of a wider USD 1 bn project next year. Last month, we also heard news that Spanish medical consultancy WHM is looking into setting up a USD 1.8 bn healthcare data center in Egypt. Dubai-based Khazna Data Centers was also reported to be closing in on the location for a USD 250 mn data center in set for completion in 2026.

Infrastructure gaps remain key in investors decisions to commit to Egypt and our domestic fiber network still needs improvement to support large-scale data center growth. The country’s data center growth depends on stable, high-speed connectivity, but bandwidth constraints remain an issue, Lombatti said in response to a question from EnterpriseAM. Suitable industrial parks with the right infrastructure is also what investors are looking for in emerging markets.

Unlike other emerging markets, Egypt’s power supply may not be as reliable as investors are looking for, especially considering the serious problems that can result from power outages. Even if the days of power outages are firmly in the rear-view mirror, interested investors will be well aware that the country had suffered rolling blackouts as recently as July — and for some, no amount of reassurances that the lights will be kept on for certain projects will ever be persuasive.

To address this energy demand and the environmental impact of data centres, there’s been a green data centre push, with a consortium including Swicorp Infra Capital, Income Egypt, and Record Digital Asset Venture inking an MoU last year to build, own, and operate a green data center in Egypt. The data center will gain its green status through 200 MWs of solar and wind energy that will be used to power it.

We’re also not ready for data centers’ heavy water consumption. Data centers require significant water resources for cooling, especially when in hot climates like Egypt. Although still a relatively small sector, industry insiders estimated in 2023 that the industry already accounts for 2% of global water usage. While this presents a challenge to any country, for a country like Egypt with a 7 bn cbm annual water deficit coupled with a rising population and the threat of the Grand Ethiopian Renaissance Dam, the calculation is somewhat more serious.

We can learn a lot from Saudi Arabia’s success in the sector, with the country now leading the Arab world having attracted USD 8 bn pledged for data center expansion since the start of 2025, according to Lombatti. The Kingdom’s drive to become an AI hub is fueled by government policies, tax incentives, and economic free zones. The push has attracted major firms like Microsoft, Amazon Web Services, and Equinix to invest in data center capacity, alongside a USD 1.5 bn Groq-Aramco partnership for the world’s largest AI inference node.

Your top infrastructure stories for the week:

Orascom Construction-Tecnicas Reunidas JV will work on a USD 2.6 bn Saudi power plant project, under a contract between the two for a 3 GW expansion of the Qurayyah IPP combined cycle power plant in Saudi Arabia’s Eastern Province.
The government approved Alstom’s EUR 80 mn railway manufacturing complex to be established as part of a freezone project in Alexandria’s Borg El Arab. The under construction project will include two factories to manufacture components for Cairo Metro Line 6 and cables.
Oil Minister Karim Badawi discussed the terms of leasing the Energos Power floating regasification unit with German officials. The discussions followed initial negotiations in Cairo in late February. The vessel is currently docked in Germany’s Mukran Port.

Tags:

AI Data Centers digital infrastructure energy Hardhat infrastructure investment watch

CALENDAR

MARCH

30 March-1 April (Sunday-Tuesday): Eid El Fitr holiday.

Egypt-Sierra Leone Business Forum.

APRIL

Arla Foods’ deadline for Domty acquisition offer.

5 April (Saturday): Mint Fintech Hackathon application deadline

7-9 April (Monday-Wednesday): Narrative PR Summit’s 9th edition, Somabay

7-8 April (Monday-Tuesday): French President Emmanuel Macron's visit to Egypt.

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

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

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

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

30 April (Wednesday): Deadline for Australia Awards Scholarships applications.

Business-to-business forum of Egyptian and Moroccan companies to promote bilateral trade, Cairo, Egypt.

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.

MAY

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

1 May-10 July (Thursday-Tuesday): 500 Global's Scale Up Program, Cairo

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

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo.

JUNE

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

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

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.

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

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

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

DECEMBER

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

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

EVENTS WITH NO SET DATE

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

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

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.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

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

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

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings for 2027.

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place

September 2028: First unit of the Dabaa nuclear power plant begins operations

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