Another busy day for El Khatib in Kuwait

Tuesday, 4 Feb 2025

Another busy day for El Khatib in Kuwait

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Today at a glance

Investment Watch

El Khatib’s second day in Kuwait: Ali Alghanim mulls insulin factory, Red Sea resort in Egypt and more.

Capital markets

When can we expect the stamp tax to replace the planned capital gains levy on EGX transactions?

Energy

Gov’t locks in 60 LNG shipments for 2025.

M&A WATCH

UAE’s Amass submits offer to acquire EGP 100 mn stake in Osool ESB through capital increase.

Commodities

Al Mashat pitches SCZone as Ukrainian grain storage hub.

Also on our Radar

Raya Auto to set up USD 50 mn EV assembly plant next year.

What We're Tracking Today

Are we witnessing the death of USAID?

PLANET FINANCE

Markets react to the impending Trump tariffs.

Going Green

The lowdown on Egypt’s blue economy.

What We're Tracking Today

Are we witnessing the death of USAID?

Good morning, friends. We have another packed issue for you this morning as the news cycle shows no sign of slowing down. In today’s issue we have everything you need to know about Investment Minister Hassan El Khatib’s second day in Kuwait, fresh M&A news, and the latest on the capital gains tax.

PSA-

WEATHER- Cairo is in for another cool day, with a high of 21°C and a low of 12°C, according to our favorite weather app.

It’s just as cool in Alexandria, with a high of 20°C and a low of 12°C.

** 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- Has the Trump administration sounded the death knell for USAID? All signs from the US’ Oval Office seem to indicate that the embattled US Agency for International Development (USAID) is rapidly approaching a reckoning, with US President Donald Trump describing USAID to reporters Sunday as “run by radical lunatics” and the head of the Department of Government Efficiency Elon Musk referring to it as a “criminal organization" and a “radical-left political psy op” in separate posts on X. Meanwhile, the agency’s website has gone down, with some of its top officials put on leave as doubt swirls about USAID — and its funding’s — future, the Financial Times reports.

One possible endgame could involve the US State Department absorbing USAID — a scenario that would likely cause hefty budget cuts that would slash funding for global assistance programs. “I would be absolutely for, if that’s the path we go down, removing USAID as a separate department, and having it fall under…other parts of the United States…because of its failure,” Republican Chair of the US House of Representatives’ foreign affairs committee Brian Mast told CBS’s Face the Nation (watch, runtime: 4:08).

What does this mean for Egypt? Although Trump’s 90-day halt on foreign aid exempted Egypt and Israel to allow them to continue to receive military aid, other programs that the US funds in Egypt — including USAID scholarships for Egyptians at home and abroad — were completely cut off by the order. A total of 1.1k Egyptian students on USAID-funded scholarships have been left without funding to continue their education, with some even facing housing insecurity. Universities and the Higher Education Ministry have stepped in by covering the tuition of 877 students, though students who had been about to enroll were not included in the support package.

#2- More vessels start passing through the Red Sea: The Liberian crude oil tanker Chrysalis passed through the Suez Canal yesterday for the first time since being targeted in a Houthi attack last July, according to a statement from the Suez Canal Authority. “The return of the tanker to transit through the Suez Canal is a strong message of reassurance regarding the positive developments towards the return of stability to the Red Sea region,” SCA head Osama Rabie said.

Remember, traffic is picking up through the canal, albeit very slowly, with reports out last week that six US- and UK-linked ships passed through the Red Sea safely since 19 January, after Yemen’s Houthis announced they would only target Israeli-linked vessels following the ceasefire agreement between Israel and Hamas. However, six ships is just a drop in the bucket when compared to traffic the canal was used to, with shipping giants such as Maersk, MSC, and Mitsui OSK still avoiding the Red Sea, citing security risks.

FROM THE DEBT MARKETS-

The central bank sold USD 1.06 bn worth of one-year USD-denominated T-bills yesterday, at an average yield of 4.25%, according to data on its website. The issuance coincides with a similar amount of T-bills set to mature next week, with a yield of 5.1%.

HAPPENING TODAY-

Foreign Minister Badr Abdelatty is in Turkey today to discuss bilateral relations with his Turkish counterpart Hakan Fidan, the Foreign Ministry said in a statement yesterday. The talks will cover cooperation across multiple areas as well as regional developments.

Abdelatty isn’t the only Arab official landing in Turkey today: Syria's new Interim President Ahmed Al Sharaa will be in Ankara today, where he will discuss the latest developments in Syria with Turkish President Recep Tayyip Erdogan, the head of comms at the Turkish presidency said on X.

Abdelatty has a busy week ahead: The minister is set to travel to India later this week — in what will be his first visit to the country since his appointment last year — to partake in the first Indian-Egyptian strategic dialogue, India’s Hindustan Times reports, citing people it says are familiar with the matter. The discussions will focus on regional developments and strengthening diplomatic ties.

AND- It’s the final days of the Cairo International Book Fair: Today and tomorrow are your last chance to bag a bargain at the book fair, which comes to a close on Wednesday after its two-week run at the Egypt International Exhibition and Convention Center in New Cairo. This year’s fair is hosting 1.2k publishers showcasing their latest publications and thousands of exhibitors for the event, with mns expected in attendance — last year’s visitor count reached near the 5 mn mark.

THE BIG STORY ABROAD-

Trump’s flurry of executive orders is still the primary focus of international news headlines this morning, from delaying tariffs to creating a new US sovereign fund, to latest updates on the campaign targeting US foreign aid.

Crisis averted (for now): North American leaders managed to reach last-minute agreements with Trump, postponing tariffs on Canada and Mexico for 30 days, pending negotiations. Canadian Prime Minister Justin Trudeau said his country will deploy technology and manpower to curb the flow of immigration and fentanyl across the border, while Mexico’s Sheinbaum is deploying 10k National Guard troops to “stop drug trafficking from Mexico.” Meanwhile, the US committed to curbing the flow of high-powered weaponry to Mexico.

China is still in the fray, however, as 10% tariffs are still set to take effect within a few hours. Trump is to speak with China’s Xi Jinping this week to reach an agreement, otherwise “tariffs are going to go substantially higher,” Trump said yesterday. (NYTimes | FT | Reuters | The Guardian)

Trump also signed an executive order yesterday to establish a sovereign wealth fund, with US Treasury Secretary Scott Bessent saying we could see the US fund created within a year. The proposed fund could strike partnerships with “very wealthy people” and help finance the purchase of TikTok from China’s ByteDance, with an eventual target to rival investments deployed by big players like Saudi Arabia. (Bloomberg | BBC | Associated Press)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We dive into Egypt’s blue economy, its potential, and what’s stopping it from flourishing.

Tags:

USAID What We're Tracking Today

Somabay Welcomes World Aquatics Open Water World Cup for the Third Year

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.

Investment Watch

El Khatib’s second day in Kuwait: Ali Alghanim mulls insulin factory, Red Sea resort in Egypt and more

El Khatib continued to make the rounds in Kuwait: Investment Minister Hassan El Khatib spent his second day in Kuwait in a series of high-profile meetings aimed at strengthening Egyptian-Kuwaiti economic ties and drumming up investments.

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

#1- Ali Alghanim explores new investments in Egypt: Kuwait’s Ali Alghanim & Sons Group is looking into setting up an insulin factory in Egypt in partnership with foreign companies as part of its expansion in Egypt. The group is also exploring the development of a tourist resort overlooking the Red Sea.

Ali Alghanim already has a footprint in the Egyptian market: The group’s JV — set up with Saudi’s Mohamed Yousuf Naghi Group, and Egypt’s Organi Group — Auto Mobility recently inaugurated a USD 100 mn auto assembly plant for Chinese automaker Geely-branded vehicles in Egypt.

Remember- Egyptian-made insulin is fairly new. Eva Pharma became the first player to locally produce insulin glargine late last year, with a new production line that will help Egypt become a net exporter of the med. Eva Pharma’s production line is expected to move Egypt from importing 6 mn doses annually to exporting 74 mn doses.

#2- The first meeting of the Egyptian-Kuwaiti Joint Ministerial Trade Committee: El Khatib, alongside Kuwait’s Trade Minister Khalifa Ajeel, co-chaired the inaugural session of the Joint Egyptian-Kuwaiti Ministerial Trade Committee. The session touched on efforts to boost trade, industrial, and investment relations between the two sides.

All to boost Kuwaiti investments: “El Khatib invited Kuwaiti businessmen and companies to engage more actively in increasing current investments and creating new investments in joint projects across various fields,” according to the Kuwait News Agency.

At the top of the list: The two nations agreed to increase industrial, food safety, agriculture, and trade cooperation.

#3- Meetings with officials: El Khatib met with Kuwaiti Prime Minister Sheikh Ahmad Al Sabah — the two sides touched on efforts to boost relations and increase commercial, industrial, and investment cooperation between the two countries. El Khatib also held talks with Kuwaiti Finance Minister Noora Al Fassam.

#4- El Khatib highlighted potential investments in the local market during a meeting with a delegation from the Kuwait Investment Authority. He outlined key investment opportunities in Egypt, particularly in sectors including healthcare, food security, energy, communication, and information technology.

ICYMI- El Khatib’s first day in Kuwait was also plenty fruitful, with the minister meeting with representatives from Bukhamseen Group — which is mulling a USD 125 mn hotel in Egypt — Aref Investment, and Al Mulla Group. Check out the full story here.

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Capital markets

When can we expect the stamp tax to replace the planned capital gains levy on EGX transactions?

It looks increasingly likely that the long-awaited capital gains tax on EGX transactions may never come, with the government holding intensive discussions to resolve the issue — and even look for alternatives, a government source told EnterpriseAM. The tax that was supposed to come into play in December has continued to be unenforced due to the absence of executive regulations, the source told us.

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

In its place, officials are now considering reinstating a 0.15% stamp tax on all EGX transactions as a simpler alternative to the capital gains tax, which has been repeatedly delayed. There’s already an agreement between the EGX and the Financial Regulatory Authority about how to activate the stamp tax using the collection mechanism previously in place, the source said. Under the proposal, Misr for Central Clearing, Depository, and Registry would collect and remit the tax to the Tax Authority at a flat rate of 0.15% on all transactions — regardless of portfolio size or holding period.

A return to a stamp tax has been in the cards for a while now, with a senior government source telling EnterpriseAM last September that officials were studying alternatives to taxing EGX capital gains, including imposing a stamp tax. Senior figures in the cabinet, including Investment Minister Hassan El Khatib have also on several occasions raised concern that the incoming tax could be detrimental to the country’s investment climate.

Proponents of the stamp tax think it has some important advantages over the capital gains tax, including our source, who explained to us that reintroducing the stamp tax instead of the capital gains tax would encourage investors to hold stocks for longer rather than making short-term trades to minimize tax exposure. The latest iteration of the capital gains tax calculated liabilities based on the total value of an investor’s portfolio, prompting companies to offload shares at year-end to reduce taxable gains.

Refresher: A 10% capital gains tax on EGX transactions was supposed to be introduced in January 2022 for resident investors, but was later delayed. The tax has since undergone a number of different amendments and reviews, before the Madbouly government started mulling over replacing its plans to tax EGX capital gains with the flat 0.15% tax.

What’s next? The government plans to finalize the collection mechanism and submit draft legislation to the House soon to avoid disrupting the upcoming corporate tax filing season, which ends on 30 April, our source told us.

Tags:

capital markets EGX tax

Energy

Egypt locks in 60 LNG shipments worth USD 3 bn for 2025

USD 3 bn worth of LNG shipments locked in for 2025: Egypt has reportedly signed agreements with Shell and TotalEnergies to purchase a total of 60 LNG shipments in 2025 for around USD 3 bn, an unnamed government official told Asharq Business.

(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: The agreement entails supplying around five shipments per month, each carrying between 160-165k cubic meters of LNG — equivalent to approximately 500 mn cubic feet of gas per day for local consumption over a one-week period, the source added. The contracts were signed in December and came into effect in early January, with each shipment valued at around USD 50 mn. The agreements include a one-year deferred payment period from the date of each shipment’s delivery, according to the source.

Remember: A senior government source told EnterpriseAM in December that the Oil Ministry wants to see local production rise to the point that the government will only need to import four shipments monthly, setting a target for domestic production to increase by up to 500 mcf/d by March. Egypt currently produces 4.3 bcf/d, alongside 900 mcf/d of imported gas, our source said, against demand of more than 6 bcf/d.

No one seems to agree when Egypt will stop importing LNG and regain its title as a net LNG exporter, with the more pessimistic pencilling in 2029 and the more optimistic seeing LNG deliveries ending by 2026 or 2027.

One encouraging sign is a resurgence of LNG re-export agreements: The Madbouly government is expected to ink agreements this month with France’s TotalEnergies and Italy’s Eni to transport Cypriot gas to Egypt to be liquefied and exported. This follows earlier news from the Oil Ministry that TotalEnergies wanted to supply gas from its fields in Cyprus to Egypt for liquefaction and re-export as LNG or to be fed directly into the grid.

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energy oil and gas Shell TotalEnergies

M&A WATCH

UAE’s Amass submits offer to acquire EGP 100 mn stake in Osool ESB through capital increase

The UAE’s Amass wants a piece of Osool ESB: Abu Dhabi-based Amass Investments has submitted a binding offer to acquire a EGP 100 mn stake in EGX-listed brokerage firm Osool ESB through a capital increase, according to two separate filings to the exchange filings (pdf) | (pdf).

The details: Amass is offering to invest EGP 100 mn in the firm at the fair value price that will be decided by an independent financial advisor, with the investment set to be an off-market private placement transaction. It’s noteworthy that Osool Holding holds a 74.2% stake (pdf) in the listed company.

A deposit in good faith: The Emirati firm has already transferred the full amount it is willing to invest to Osool’s bank account, which will remain in escrow until Osool decides on the offer. Osool will hold a board meeting on Thursday to evaluate the offer.

Last year was a good year for Osool ESB: The company logged EGP 8.96 mn in net income in 9M 2024, up 79.3% y-o-y.

Market reax: Following the news, Osool ESB’ shares rose 20% to EGP 0.92 a share by the end of trading yesterday.

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corporate actions M&A Watch

A MESSAGE FROM VODAFONE

Vodafone Business Director Mahmoud ElKhateeb on driving digital progress

What does Egypt need to do to become a digital economy?

Egypt has great potential to build a leading digital economy, and there are three essential key areas to unlock this potential: infrastructure, skills development, and fostering an environment that embraces innovation.

While some rural areas still face connectivity challenges, Vodafone Egypt has actively addressed this by investing EGP 100 bn in infrastructure upgrades over the years, to ensure that all communities benefit from faster, more reliable internet — a cornerstone for economic advancement.

To empower the workforce for the future, Vodafone Business has introduced nationwide initiatives aimed at enhancing digital capabilities and technical expertise, equipping both youth and professionals for the digital world.

Creating a culture of change involves awareness and support, which is why we are committed to offering digital solutions and advisory that make the transition to digital technologies both accessible and seamless for everyone.

How does Vodafone Business support SMEs in their digital transformation?

We support businesses of all sizes with scalable solutions, including cloud services, IoT, and cybersecurity, to drive their digital transformation. For SMEs, we foster growth by encouraging the adoption of integrated solutions and enhanced connectivity, while V-Hub guides them in choosing the right digital tools to remain competitive. Our continued sponsorship of Shark Tank Egypt underscores our dedication to supporting entrepreneurs and fostering innovation. For larger enterprises, we are the digital partner of choice, driving end-to-end digitization across critical sectors with best-in-class mobility, connectivity, and digital solutions. With a proven track record, including leading Egypt’s healthcare digitization initiative, we continue to help businesses achieve their digital transformation objectives.

How does Vodafone Business’ goals align with a broader vision for social and economic impact in Egypt?

First thing that comes to my mind here is a mega project that’s very close to my heart, which focuses on digital inclusion through enabling access to quality healthcare, in line with Egypt’s Vision 2030. Through the Universal Health Insurance program, we’ve digitized 359 public healthcare facilities across six governorates, improving patient care for six million citizens. Additionally, we’ve modernized 17 university hospitals, with the benefits of digitalization already visible in Ain Shams University hospitals, with wait times reduced by 32% and EGP 50 mn saved.

What would you like those who are considering partnering with Vodafone Business to know?

I’d like them to know that we are committed to helping them grow. Whether you're an SME or a large enterprise, we understand the challenges of the digital age and are here to keep you secure, competitive, and connected. Our partnerships are built on trust and collaboration, and together we can unlock new opportunities and drive progress in the digital world.

How does Vodafone Business see the potential of 5G in Egypt’s digital transformation?

5G has the power to revolutionize Egypt’s digital landscape by enabling faster, more reliable connectivity that fuels innovation across industries. From enhancing smart manufacturing with real-time data processing to transforming healthcare with remote diagnostics and AI-driven solutions, Vodafone’s 5G will unlock new opportunities for businesses to operate more efficiently and create cutting-edge services. At Vodafone Business, we’re excited to help Egyptian companies leverage 5G capabilities to drive productivity, streamline operations, and foster growth in an increasingly digital world.

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A MESSAGE FROM VODAFONE TELECOMS Vodafone Egypt

Commodities

Al Mashat pitches SCZone as Ukrainian grain storage hub

Could the SCZone be the gateway for Ukrainian grain? Planning and International Cooperation Minister Rania Al Mashat touted the Suez Canal Economic Zone (SCZone) as a potential hub for Ukrainian grain storage and re-export to Africa during a high-level meeting in Cairo with Ukrainian Agrarian Policy and Food Minister Vitaliy Koval and senior officials, according to a ministry statement. She also invited international partners to visit the area to explore its potential as a logistics and manufacturing hub.

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

The move comes amid ongoing disruptions in the wheat market related to the Russia-Ukraine war, with Russia’s wheat harvest expected to have declined to 83 mn tons in 2024, down from 92.8 mn tons in 2023. Russian farmers ditching wheat to sow higher-yield crops may reduce the country’s 26% share of the global wheat market and inflate wheat prices, especially for major buyers like Egypt.

Ukraine also wants to set up its own logistics zone: Koval, for his part, noted that Ukraine is interested in establishing a logistics zone in Egypt that would be a center for Ukrainian exports to the rest of Africa, amid a broader expansion of economic and trade relations between the two countries.

ALSO- Egypt and Ukraine signed cooperation agreements on trade standardization, specifications, and quality and an MoU in the space sector.

All part of the gov’t silo expansion plan: The government has been expanding silo infrastructure to secure Egypt’s wheat and grain reserves, Al Mashat added, pointing toward the EGP 520 mn West Port Said Silo, which broke ground back in 2021. The facility, located in West Port Said Port, has a 100k-ton storage capacity and was designed to ease pressure on existing port silos in Damietta, Dekheila, Alexandria, and Safaga. The project was backed by USD 538 mn in food security funding from the UAE, the Saudi Fund for Development, France, and multilateral lenders.

There are more private sector investments on the way, with Feerum Egypt — the local arm of Polish grain silo company Feerum — reportedly in talks with Banque Misr and Banque du Caire to secure funding for its long-awaited silo factory in East Port Said. The project, now valued at EGP 2.5 bn, aims to deliver 1.4 mn tons of storage capacity over three years, with production slated to start in 2026.

The government has been working for years to increase wheat storage capacity and cut down on harvest losses. The Supply Ministry has plans to increase the country’s silo capacity to 5.3 mn tons through new silo construction and financing agreements. The expansion is key to ensuring food security, reducing waste, and reinforcing Egypt’s role as a regional grain hub.

Tags:

commodities Rania Al Mashat

Trade

Egypt’s processed food exports hit fresh high in 2024

Egypt’s processed food exports hit a record USD 6.1 bn in 2024, growing 21% y-o-y thanks to a “significant expansion in export markets” — especially the Arab, European, and US markets — the Food Export Council said in a press release.

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

The biggest buyers: Arab countries as a whole took the largest share of Egyptian processed food exports, buying 54% of our exports for a total of USD 3.3 bn. The EU claimed the second spot, with the bloc buying up 19% of our exports for some USD 1.2 bn — up 32% from 2023.

Saudi Arabia topped the list as Egypt’s largest single-country export destination with USD 491 mn worth of exports, up 23% y-o-y. Sudan came in second place with USD 412 mn worth of exports — a 12% y-o-y decline. Meanwhile, Dutch exports of Egyptian processed food saw the largest expansion with a 103% y-o-y jump to USD 259 mn worth of exports.

Soft drink concentrates came on top of the processed food products sent abroad, registering USD 532 mn in total value and showing growth of 6% y-o-y. Flour, sugar, frozen strawberries, and edible oils rounded out the rest of the list for the year.

Untapped potential and room for more growth: “With targeted investment in capacity and machinery, quality standards, and market penetration strategies, Egypt can position itself as a regional food processing hub, capturing a much larger share of regional demand. Private equity firms such as RMBV are positioning themselves as catalytic investment capital to achieve exactly this outcome,” RMBV Managing Partner Ahmed Badreldin told EnterpriseAM.

Strengthening Egypt’s manufactured food exports has been a key priority of late, with global food companies — including those from Europe, Turkey, and other countries in the Middle East — already maintaining manufacturing and export bases in Egypt. Incorporating tech solutions that reduce costs, improve quality, and ensure sustainability across the production chain is a key factor in attracting new investments in the sector, with freeze-drying technology and innovations in herb processing, juice concentrates, and date production among the areas ripe for investment.

Case in point: Last year, MAFI Agricultural Produce Industries inked contracts to set up a USD 300 mn agri-food industrial complex set to house five factories — the project raised USD 180 mn in long-term financing last month. There’s also Sullex, the cold chain developer that’s building an innovative project south of Giza, which will help cut down on food waste and change how food producers operate — we spoke with its founder and Chairman Andrew Daniel last year to learn more about the company and what it does. Check out the interview here.

Still, several roadblocks remain, including high costs, a lack of sufficient workforce training, and widespread informality in the sector. Food exporters are also among those facing lower export subsidies in the coming period, with the government announcing in November that food exports will receive subsidies of between 1.2% and 3% of the total value of exports depending on their added value.

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food Food Export Council trade

EGYPT IN THE NEWS

Cairo-based houseware brand Anūt gets ink in the FT’s lifestyle section

It looks likely that there will be an uptick in orders of Egyptian pottery, glassware, and tableware coming from London, with the Financial Times featuring Cairo-based houseware brand Anūt Cairo and its founder Goya Gallagher in its lifestyle pages. The salmon-colored paper takes its reader through Anūt’s collection and the story of the recently launched brand.

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lifestyle

Also on our Radar

Raya Auto to set up USD 50 mn EV assembly plant next year

EVs-

Raya Auto plans to establish a USD 50 mn EV assembly plant in Egypt next year, CEO of the Raya Holding automotive unit Mohamed El Naggar told Asharq Business. The plant will be developed in partnership with an unnamed Chinese company, with half of the project cost self-financed and the rest secured through bank loans. The company also plans to invest USD 25 mn to build 30 fast-charging stations in Egypt over the next three years.

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

DEVELOPMENT FINANCE-

Our annual USD 1.5 bn from the ITFC secured: The Madbouly government and the International Islamic Trade Finance Corporation (ITFC) inked their annual USD 1.5 bn work program yesterday, ITFC CEO Hani Sonbol told CNBC Arabia. The funds will support the energy sector and food security.

MANUFACTURING-

Glass Manufacturing Group (GMG) plans to set up a USD 2 mn factory in Qalyubia this year to double its production capacity to 2k pieces per day, Al Borsa reports. The company is also planning to double its export volumes starting next year.

STARTUPS-

Local VC firm Foundation Ventures reached financial close for its FVFII USD 25 mn fund, led by investors like the Egyptian American Enterprise Fund, Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and Onsi Sawiris, according to a statement (pdf) from the firm. MSMEDA said in December that its contribution to the fund would total USD 3 mn.

The new fund aims to "strengthen Egypt’s entrepreneurial landscape” by supporting early-stage startups and helping them expand across and beyond the region. Egyptian startups will not be the only recipients, however, with some of the funds set to be funneled into “promising” African startups.

AVIATION-

Emirates Airlines has inaugurated its Emirates World store in Cairo as part of its plan to offer a more interactive experience for travelers, the company announced at a press conference attended by EnterpriseAM last Thursday. The new store, located in 5A by Waterway in New Cairo, aims to “elevate the customer experience through product showcases, smart technologies and expert travel consultants.”

Expansion plans in the pipeline: This marks Emirates’ third store in Africa and ninth globally, with the airline planning to invest over AED 100 mn to expand its network to 40 stores worldwide within the next three years, Chief Commercial Officer Adnan Kazim told EnterpriseAM.

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ALSO ON OUR RADAR aviation development finance Foundation Ventures International Islamic Trade Finance Corporation Manufacturing Raya Auto startups venture capital

PLANET FINANCE

Markets react to the impending Trump tariffs

Trump’s tariff plans send shockwaves across financial markets: Markets around the world started the week in the red in anticipation of the US implementing higher tariffs on its largest trading partners and threatening the EU may be next. Japan’s Nikkei fell 2.7% during yesterday’s trading, the FTSE 100 was down 1.0%, Kospi fell 2.5%, while the S&P 500 closed down 0.8%.

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

A better performance than initially expected: The tariffs on Mexican, Canadian, and Chinese imports were set to take effect at midnight before US President Donald Trump paused the 25% tariff on Mexican and Canadian imports for a one-month period. The move had markets performing better than initially expected.

Investors are hopeful that the tariffs will never see the light: “Call us deluded, but we still think that permanent tariffs on the US‘s allies (Canada, Mexico) will not be a thing … That’s because concessions are an ‘easier’ way to deal with Trump’s ‘problems’ (from a cost-benefit and game-theoretic perspective), and Trump likes to make deals,” Macquarie’s Thierry Wizman said.

Markets aside, the tariffs will have a broader economic impact, possibly hurting “the economies of the US and its neighbors while putting upward pressure on inflation,” CNBC writes. “Our economists expect that fully implemented tariffs would have meaningful consequences. A recession in Mexico becomes the base case,” one Morgan Stanley strategist said, pointing to increased inflation and lower economic growth.

Is the EU next in line for the Trump tariff? Trump told reports that levies on goods coming from the EU could be introduced “ very soon.”

All of the international pages had coverage of the new: BBC | AP | CNBC | Reuters | FT

MARKETS THIS MORNING-

After a rocky start to the week, Asian markets are in the green in early trading this morning — the Nikkei is up 1.5%, the Hang Seng is up 2.8%, and Kospi is looking at gains of 1.8%.

EGX30	29,755	-0.6% (YTD: -0.1%)
USD (CBE)	Buy 50.28	Sell 50.41
USD (CIB)	Buy 50.31	Sell 50.41
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,377	-0.3% (YTD: +2.8%)
ADX	9,576	-0.1% (YTD: +1.7%)
DFM	5,183	+0.1% (YTD: +0.5%)
S&P 500	5,995	-0.8% (YTD: +1.9%)
FTSE 100	8,584	-1.0% (YTD: +5.0%)
Euro Stoxx 50	5,218	-1.3% (YTD: +6.6%)
Brent crude	USD 75.41	-0.3%
Natural gas (Nymex)	USD 3.35	+10.1%
Gold	USD 2,857	+0.8%
BTC	USD 101,932	+5.1% (YTD: +9.0%)

THE CLOSING BELL-

The EGX30 fell 0.6% at yesterday’s close on turnover of EGP 3.1 bn (18.4% below the 90-day average). Regional investors were the sole net sellers. The index is down 0.1% YTD.

In the green: Beltone Holding (+4.6%), Orascom Construction (+1.3%) and CIB (+0.5%).

In the red: Orascom Development (-2.6%), Palm Hills Development (-2.6%) and Alexandria Containers and Cargo Handling (-2.6%).

Tags:

Financial Markets Planet Finance trade

Our weekly deep dive into the green economy and ESG issue in Egypt.

Published every Tuesday in EnterpriseAM.

Read going Green

Going Green

The lowdown on Egypt’s blue economy

Where does Egypt’s blue economy stand? The blue economy is increasingly coming into frame as a key pillar of the green transition. At home, the blue economy has significant potential by virtue of Egypt’s strategic location — and the country has, indeed, made some successful strides in areas like fish farming. Nonetheless, the local sector is underperforming in the absence of a national blue economy strategy and fragmented oversight. The Egyptian Center for Economic Studies (ECES) last month held a seminar to discuss Egypt's position in the global blue economy and ways to overcome these obstacles. We bring you the full scoop in this story.

THE BRASS TACKS-

First things first: What is the blue economy? The term refers to the sustainable use of marine resources for economic growth, according to the World Bank. It encompasses activities like aquaculture, renewable marine energy, ocean-based tourism, maritime transport, and marine biotechnology.

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

The global blue economy is gaining momentum: Estimated at USD 15 tn, the global blue economy provides more than 500 mn jobs worldwide and supplies 40% of food security, according to ECES. One of the United Nation’s 17 sustainable development goals — dubbed Life Below Water — focuses on the conservation and sustainable use of oceans, seas, and marine resources for sustainable development.

More than 33 countries have integrated the blue economy in their future development plans, including China, India, Morocco, and South Africa. China’s blue economy contributed about 9% of its GDP — or USD 1.3 tn — in 2019, while South Africa's blue economy accounted for about 4.5% of its GDP in 2020.

At home: A study by ECES revealed that coastal tourism and diving dominate the sector, accounting for 75% of the total value of Egypt’s blue economy. Fish farming emerged as the second largest contributor, followed by transportation. While the renewable marine energy sector currently holds the smallest share of the blue economy, it is projected to have the highest growth potential in the future.

AQUACULTURE-

We’ve had some success with fish farming: Fish farming presents a prime opportunity for the local blue economy. Ranking as the top aquaculture producer in Africa, Egypt accounts for 71% of the continent's output, according to a 2023 study. The country has grown its output of farmed tilapia by over 50 times since it first began producing substantial quantities in 1991, expanding it to a current 1.1 mn tons from 20k tons, Fish Basket Chairman Ali El Haddad said at the ECES seminar. El Haddad attributes this growth to effective private sector management.

But how sustainable are our practices? Fish farming, along with fishing and ecotourism, continue to rely on traditional economic models. Additionally, illegal fishing in certain areas is damaging the marine ecosystem and threatening fish populations.

Exports are stifled by an underdeveloped fish processing industry: Aquaculture exports remain at a low level of around 50k annual tons, El Haddad noted. Because the fish processing industry is underdeveloped, exports are constrained to whole fish, which represent a meager 3% of global fish exports, El Haddad explained.

Regulatory reforms are needed to prop up fish processing: The National Food Safety Authority’s (NFSA) bureaucratic approach causes delays, while its multi-committee inspection process focuses on finding faults rather than helping factories improve and meet export standards, El Haddad argued. He urged the creation of laws to regulate the fish processing industry and called for a reform of the NFSA.

MARITIME TRANSPORT-

We’re in the catbird seat when it comes to maritime trade: Egypt's strategic geographic location, with over 3k km of coastline, positions it to capitalize on 60-70% of global maritime trade, said Khaled El Sakty, AAST’s International Transport and Logistics college dean. Nearly 11.8 bn tons of goods — 85% of global trade — are transported by sea, he noted.

But inconsistent port fees and regulations are a sticking point: Among the obstacles hindering the country’s significant maritime potential are inconsistent port fees and tariffs, said international transport consultant Mohamed Sherine El Naggar. Additionally, varying port authority regulations have prevented proper discount application for vessels passing through multiple ports. El Naggar stressed the need for unified tariffs, fees, and regulations, alongside a comprehensive overhaul of the entire maritime system.

What about other industries? Subsea cables and marine-based medicine are two promising sectors, said El Sakty, calling for increased investment in these areas. Submarine cable networks facilitate around 99% of international data transfer, according to the Blue Economy Observatory, and many crucial cables traverse Egyptian waters, El Sakty said. Meanwhile, some 50-60% of pharma companies rely on raw materials derived from marine organisms, El Sakty said, emphasizing the importance of more research in this area.

Om El Donia has a ways to go: Despite government discussions about a blue economy strategy for over two years, one is yet to materialize. And unlike major players in the blue economy, Egypt lacks an independent authority dedicated to regulating the sector, with multiple ministries and entities seeing an overlap in roles. El Sakty suggested the creation of an independent authority under the cabinet. Echoing this sentiment, ECES’s Execute and Research Director Abla Abdel Latif called for the development of a clear institutional framework to prevent further missed opportunities for Egypt’s blue economy.

Your top green economy stories for the week:

Progress made on DAI’s planned green ammonia plant: Germany’s DAI Infrastructure is reportedly planning to submit the financial studies for its USD 10 bn green ammonia plant project in East Port Said to banks and the involved government entities within two months. (Hapi Journal)
Gov’t on the lookout for new Ataka pumped storage hydropower project partner: The Madbouly government is set to reoffer the USD 2.3 bn pumped storage hydropower plant at Ataka Mountain to Indian, Chinese, and European investors, after an offer was withdrawn from China’s SinoHydro following funding issues.
AOI has another solar panel factory in the works: State-owned Arab Organization for Industrialization (AOI) is reportedly set to establish a USD 100 mn solar panel manufacturing facility with a production capacity of 300 MW in partnership with Omani investors.

Tags:

going green water

CALENDAR

FEBRUARY

23 January- 5 February (Thursday-Wednesday): Cairo International Book Fair, Egypt International Exhibitions Center, Cairo

29 January - 8 February (Wednesday-Saturday): Business Ya Shabab exhibition, Cairo Stadium

6 February (Thursday): Trade mission to Tanzania, organized by Chemicals & Fertilizers Export Council and the Export Council Building Materials, with 23 Egyptian companies participating.

8 February (Saturday): TechShift Summit 2025, The Greek Campus Downtown, Cairo

10 February (Monday): The Economic Forum for Industry and Investment.

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

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): EGYPES Technical Conference, Egypt International Exhibition Center, Cairo, Egypt.

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

20 February (Thursday): Monetary Policy Committee's first meeting.

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

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

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

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

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

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: 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

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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