Bonyan awaits EGX temporary listing decision today ahead of planned IPO in Q1 2025

Wednesday, 15 Jan 2025

Bonyan awaits EGX temporary listing decision today ahead of planned IPO in Q1 2025

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Today at a glance

IPO

EGX to decide today on Bonyan’s temporary share listing ahead of IPO.

Education

Egyptian universities to open branches abroad in education export push.

Automotive

Made-in-Egypt Geely autos should soon start rolling off the assembly lines.

Customs

Customs Authority begins clearing 30k passenger car backlog following new regulations.

EGYPT IN THE NEWS

Bloomberg takes a look at Egypt’s new grains buyer.

Also on our Radar

ExxonMobil discovers natural gas at its first ever offshore well in Egypt.

PLANET FINANCE

Sukuk market is set to maintain its momentum this year.

HARDHAT

A look at plans to improve Egypt's electricity infrastructure in 2025.

What We're Tracking Today

CI Capital on track for KSA expansion with Riyadh office before the end of 1H 2025

Good morning, friends. We’re kicking off this morning with more news suggesting that 2025 may not be as dry a year for IPOs as 2024 — or 2023, 2022, 2021, 2020 for that matter — a new export push through higher education, and more.

BUT FIRST- You’ve got another paid day off coming up — if you work on Saturdays that is — with Prime Minister Moustafa Madbouly announcing yesterday that workers in the public and private sectors will get the day off on Saturday 25 January in observance of National Police Day and the commemoration of the 2011 revolution.

PSA-

WEATHER- Cairo is in store for a sunny day later today, with a high of 23°C and a low of 12°C, according to our favorite weather app.

It’s a few degrees cooler in a cloudy Alexandria today, with a high of 20°C and a low of 11°C.

But be careful on the roads this morning, with heavy fog forecast for today and tomorrow morning that could make your drive into work a little more treacherous than normal, the Egyptian Meteorological Authority said in a warning.

** 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-

CI Capital is planning to expand into the KSA with a Riyadh office before the end of 1H 2025, managing director and head of regional markets, Fahd Al Tarzi, told EnterpriseAM. The more concrete target follows the financial services firm securing a service investment license from the kingdom’s Investment Ministry late last month.

What’s next? The firm is working on getting the necessary licenses from the Capital Market Authority ahead of its planned launch.

IN THE HOUSE-

The House wrapped up three days of debates yesterday, giving final approval to three draft laws and one foreign agreement. MPs will reconvene on Sunday 26 January.

Lawmakers gave the final sign-off to a government-drafted law that directs cash-based subsidies to citizens who fall below the poverty line and lack access to social ins. initiatives. The law stipulates forming the Takaful and Karama fund to distribute these payments.

MPs also approved a government-drafted bill to delay the tax on agricultural land by a year, effective 31 July 2024. The postponement aims to ease financial pressures on farmers and boost production.

The House also greenlit the Finance Ministry guaranteeing EgyptAlum’s financial commitments with Norwegian renewables firm Scatec under a power purchasing agreement between the two.

MPs signed off on a EUR 135 mn grant from the European Investment Bank to support the Environment Ministry’s Sustainable Green Industry project, which will support the greening of the country's industrial sector by implementing climate change and environmental sustainability measures.

Lawmakers passed 171 articles of the draft Criminal Procedures Law, including a provision allowing individuals on travel ban or watch lists to appeal the orders in a criminal court within 15 days of notification.

MARKET WATCH-

The EGX30 broke a five-day losing-streak on Tuesday following news of a potential ceasefire agreement in Gaza, with the country’s most main index raising 1.4% by the end of trading yesterday.

It was a similar story for exchanges in the Gulf, as building confidence in an approaching ceasefire agreement fueled investors sentiment. Saudi Arabia’s benchmark Tadawul was up 0.5%, Dubai’s index inched up 0.3%, while Abu Dhabi’s FTSE ADX climbed 0.4%. The biggest gainer among the Gulf markets was Qatar’s QSI, which also broke free from a three-session losing streak, rising 1.6% yesterday.

THE BIG STORY ABROAD-

As we inch closer to Trump once again taking office, US politics are dominating the international front pages.

Trump’s pick to run the Pentagon faces the Senate: Pete Hegseth — President-elect Donald Trump’s Secretary of Defense nominee — faced the Senate yesterday in a confirmation hearing that saw his lack of experience and controversial comments brought to light. Despite being grilled over his past actions, Hegseth appears to near Senate approval. (Reuters | CNBC | AP | FT)

The Los Angeles wildfires continued to make headlines, with strong winds expected to carry fire-sparking embers over the area, which has been enduring massive destructive fires over the past week. (AP | Reuters)

*** 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 take a look at what’s in store for Egypt’s electricity sector in 2025.

Tags:

CI Capital Saudi Arabia What We're Tracking Today

Discover Somabay’s offerings at boot Düsseldorf 2025.

Somabay, the premier Red Sea holiday destination, and its partner ORCA Dive Club will showcase their exceptional diving and watersports experiences at boot Düsseldorf 2025. With vibrant coral reefs, pristine lagoons, and a collaboration with Duotone PRO-Center for kiteboarding and wing foiling, Somabay solidifies its status as a world-class hub for water enthusiasts. Don’t miss the chance to explore the unmatched beauty and offerings of this Red Sea gem.

IPO

EGX to decide today on Bonyan’s temporary listing ahead of IPO

Bonyan is on the verge of securing approval to list its shares on the EGX, as the Compass subsidiary could secure approval from the EGX’s listing committee to temporarily list its shares on the EGX’s main market today, unnamed sources tell Al Mal. Bonyan has requested to list 1.65 bn shares at a par value of EGP 1 a pop.

The real estate investment firm is pencilling in Q1 2025 for its planned IPO, with the company expecting to raise between USD 120-150 mn — some EGP 6-8 bn — from the listing, making the offering one of the largest the EGX has ever seen, the sources told outlet, without hinting at the proposed percentage of the company to be offered.

We first got wind that the firm was mulling an IPO in July, with unnamed sources at the time putting the IPO’s potential size at the lower end of current estimates at USD 120 mn.

Bonyan has already been laying the groundwork for the offering, with the company heading to a number of countries — including the UAE and Saudi Arabia — in September to hold roadshows to promote the IPO.

You may not have heard of Bonyan before, but there’s a good chance you’ve been to one of their properties, with the firm being the company behind Sheikh Zayed’s Walk of Cairo, having numerous office buildings in New Cairo's central business district in its portfolio, and other assets in and around the capital.

Stories like this are giving some hope that the local IPO market won’t be as dry in 2025 as it has been for the last several years, with 2024 witnessing only two companies holding an IPO throughout the entire year. The companies in question were Act Financial, which began trading on the EGX in late July after a 26x oversubscribed offering and the IPO of United Bank, marking an important step in the state’s privatization efforts.

ADVISORS- CI Capital and Arqaam Capital are acting as managers, while law firm Matouk Bassiouny & Hennawy is offering legal counsel.

Tags:

EGX IPO watch real estate

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Customs

Egyptian Customs Authority begins clearing 30k passenger car port backlog following new regulations

There’s good news for those who have imported cars collecting dust at the country’s ports, as the Egyptian Customs Authority (ECA) has begun procedures to release the roughly 30k vehicles currently stranded at the country’s ports that violated previous personal import or disabled-accessible vehicle import regulations, according to a document from the authority seen by EnterpriseAM.

Vehicles will have to meet certain criteria to pass customs, including being shipped before 27 December 2024, accompanied by a SWIFT payment transfer confirmation proving payment was made via a bank abroad before 25 June 2024, and paying a fine.

“These procedures represent a breakthrough in resolving the crisis of vehicles piled up at ports, whether for personal import or disabled-accessible vehicles,” Egyptian Automotive Dealers Association head Osama Abou El Magd told EnterpriseAM.

The fines will not exceed EGP 10k — significantly less than re-export costs — El Magd added.

Tags:

customs

Automotive

China’s Geely and Egyptian partner Auto Mobility to kick off local auto assembly starting today

Made-in-Egypt Geely autos should soon start rolling off the assembly lines, with a new factory set up with the Chinese auto giant’s local partner Auto Mobility set to launch “within hours,” Prime Minister Moustafa Madbouly said at a meeting with representatives from the involved companies yesterday.

Auto Mobility? The company is a joint venture between Kuwait’s Ali Alghanim & Sons Automotive, Saudi’s Mohamed Yousuf Naghi Group, and Egypt’s Organi Group. The trio behind Auto Mobility — along with local firm Al Safi Group — teamed up in late 2022 to establish Global Auto Group, the local agent of BMW and Mini.

The new factory is hoping to export 30k vehicles while also meeting local demand, but no overall annual production capacity target was provided. Whatever the production capacity number is, Geely Holding Group’s vice president indicated the company’s willingness to increase production further and establish Egypt as an important export base for Africa, the Middle East, and other markets further afield.

We’re also yet to give a price tag for the new factory, but reports last year put Auto Mobility’s investment into the localization of Geely-branded vehicles USD 100 mn — which very well may have also referred to a different game plan than the one ongoing now.

Remember: Local reports said last year that Geely was one of the auto makers who showed interest in participating in the government’s Egyptian Automotive Industry Development Program (AIDP), alongside Stellantis, Proton, Geely, Jac, and BYD.

EVs may be the next step, with Auto Mobility Chairman Fahd Ali Al Ghanim saying last year that it will study the production of EVs at a later stage.

** We spoke to Auto Mobility Managing Director Osman Abdelmoneim last year for our My Morning Routine column. You can check out our interview here.

Tags:

Auto Mobility automotive Geely

Education

Egyptian universities to open branches abroad in education export push

Negotiations are currently underway to open branches of Egyptian universities overseas, with the efforts taking place within a push internationalize the higher education sector in Egypt and education service exports, according to a statement covering a meeting between President Abdel Fattah El Sisi with Higher Education Minister Ayman Ashour, Education Minister Mohamed Abdel Latif, and Prime Minister Moustafa Madbouly.

The move is being done in partnership with the private sector, with the state not responsible for bearing any of the costs, according to the statement that provided little to no other details on the new initiative.

Higher Education Ministry spokesman Adel Abdel Ghaffar named Cairo University, Alexandria University, and Ain Shams University as among the universities that will hopefully soon sign an agreement to establish overseas branches in comments to Ahmed Moussa on Ala Mas’ouleety following the release of the statement (watch, runtime: 2:04).

The overseas branches will be in countries in Africa, Asia, and the Arab world, Abdel Ghaffar said, without naming any particular country by name.

Remember: The government has been hard at work trying to push the country’s universities up international rankings, with the latest rankings mostly showing local higher education establishments steadily creeping up the lists. To illustrate the importance of these rankings to the state, a target to increase the number of Egyptian universities on the QS World University Rankings from 15 to 28 was explicitly mentioned as part of the plan for El Sisi’s third term by the Cabinet Information and Decision Support Center.

The most recent Times Higher Education Arab University Rankings saw an Egyptian university make the top ten for the first time, with Cairo University coming in at eighth place, up from 28th the year before.

Better ranked universities should mean more appetite abroad for overseas branches — and also more international students, with a government source previously telling EnterpriseAM that the government wants to see 200k international students enrolled in Egyptian universities by 2030, up from the roughly 30k enrolled last academic year.

Tags:

Education Higher Education Ministry

Kudos

Mashreq wraps up its Climb2Change environmental cleanup in Wadi Degla

Our friends at Mashreq have officially finished their clean-up of three designated zones in Wadi Degla Protectorate, as part of Mashreq’s wider Climb2Change global ESG initiative focused on sustainability-linked financing and environmental preservation, the bank said in a press conference attended by EnterpriseAM yesterday. The wider initiative aims to scale and clean up 14 mountain sites around the world, reaching seven peaks and seven base camps.

The project’s Wadi Degla initiative removed nearly 2.2 tonnes of general waste and 120 tonnes of construction waste from the area, with Mashreq employees and external volunteers led by esteemed Egyptian adventurers Omar Samra and Manal Rostom contributing a total of 809 hours to the cleanup, the bank said in a statement (pdf) following the event. The clean up also benefited 72 local entities as part of the initiatives aim to also have a positive social impact.

What they said: “Completing the Wadi Degla Protectorate clean-up as part of the global Climb2Change initiative underscores Mashreq’s commitment to environmental conservation and sustainability. This mission is a vital component of our broader ESG strategy, where we not only focus on immediate impact but also foster long-term change by engaging our employees and local communities,” said Mashreq Egypt CEO Amr El Bahey.

Stay tuned for the initiative's next stop in China, set to take place in May.

Tags:

ESG Mashreq Bank

Moves

Investment Minister Hassan El Khatib appoints four new assistants

Investment Minister Hassan El Khatib has appointed four new assistant ministers as part of the ministry’s efforts toward “improving the investment climate, developing the business environment, promoting investment opportunities, and supporting digital transformation,” according to a ministry statement.

The new appointments include:

Ghada Nour, who will aid in investment, promotion, and government offerings;
Mohamed El Gawsaqi, assisting in planning, development, and digital transformation;
Asser Mounir, who will assist in legal and legislative affairs;
Amgad Mounir, who will assist in financial, administrative, and executive affairs.

Tags:

investment watch moves trade

LAST NIGHT’S TALK SHOWS

El Sisi and Biden’s phone call on ceasefire efforts topped the agenda on the airwaves

The nation’s hosts led their coverage last night with President Abdel Fattah El Sisi's phone call with US President Joe Biden, during which they discussed developments in the mediation efforts by Egypt, the US, and Qatar to reach a Gaza ceasefire agreement and prisoner exchange agreement, according to an Ittihadiya statement. El Sisi emphasized “the urgency of reaching an immediate ceasefire agreement to end the severe humanitarian suffering in Gaza, allow unrestricted humanitarian aid delivery, and prevent regional conflict escalation.” Kelma Akhira's Lamees El Hadidi (watch, runtime: 2:02) and Ala Mas'ouleety's Ahmed Moussa (watch, runtime: 7:59) had extensive coverage of the story.

“An issue with the occupying Israeli state” is currently standing in the way of an agreement being reached, Al Quds University political science professor Ayman El Rakb told El Hadidi (watch, runtime: 8:39). The agreement on the table is “developed and all gaps have been bridged,” and is only awaiting Israel’s decision, El Rakb continued.

“The agreement awaits Israeli Prime Minister Benjamin Netanyahu resolving an internal crisis, as he conducts shuttle meetings with Ben Gvir and others,” according to El Rakb. The academic and pundit added that “the Israeli prime minister is expected to hold a virtual meeting with his team at midnight tonight to give the green light to his delegation to approve the agreement.”

ALSO ON THE AIRWAVES- The National Wages Council is studying raising the minimum wage for private sector workers “following political leadership directives,” council member Alaa El Sakty told Hadret El Mowaten's Sayed Ali (watch, runtime: 2:04). “Studies are currently being prepared,” He said, without disclosing details about the expected increase to the current EGP 6k monthly minimum wage. He expects the council to meet by February to decide on the matter.

Remember: A raise in the public sector minimum is already in the works, with an upcoming social protection package expected to raise the minimum wage by EGP 1k to EGP 7k, with adjustments for other income brackets, two government sources recently told EnterpriseAM.

Tags:

Gaza LAST NIGHT’S TALK SHOWS Middle East politics social protection

EGYPT IN THE NEWS

Bloomberg takes a look at new grains buyer Mostakbal Misr

Egypt’s new wheat-buying system was highlighted in an in-depth piece by Bloomberg, with the outlet saying that the Egyptian government’s decision to replace the General Authority for Supply Commodities (GASC) with the newly formed Mostakbal Misr Agency for Sustainable Development as the state’s main grain buyer has made it more difficult for merchants around the world to see the “volumes, price and origins” of the wheat that their rivals are trying to sell to Egypt — a critical market for sellers.

What’s changed: Despite the closed-door nature of grain buys, traders have generally had access to data on Egypt’s big wheat tenders. Since GASC’s replacement by Mostakbal Misr, that information has dried up, leaving “many in the market scratching their heads,” Bloomberg writes.

GASC’s data was “very useful as an insight into the export market and the competitiveness of various origins,” CRM AgriCommodities consultant Mike Verdin told the outlet, adding that it “offered a guide, both through the list of offers as well as the cargoes actually purchased. The loss of this has made the market less transparent, in my view, with info on other tenders less complete, and less frequent,” he said.

Tags:

commodities GASC trade

Also on our Radar

ExxonMobil discovers natural gas at its first ever offshore well in Egypt. PLUS: Alqahtani Holding + Tanmia Petroleum + Enppi + Petrojet, Alstom, CI Capital, Misr Beni Suef Cement

ENERGY-

#1- ExxonMobil has found natural gas at its Mediterranean’s North Marakia offshore concession after drilling at the block began in mid-December, according to a report from industry publication Mees. The size of the find has yet to be determined, but pre-drill estimates came in at around 3.5 tn cubic feet, the report reads.

Remember: The exploratory well is ExxonMobil’s first in Egypt, with the company having reportedly invested USD 100 mn in the first phase of the exploration process. ExxonMobil owns 60% of the Mediterranean’s North Marakia offshore concession, while Qatari state-owned oil and gas company Qatar Energy owns the remaining 40%.

Some corners of the international business press also picked up the story: Bloomberg

#2- Saudi Arabia’s Alqahtani Holding inked two cooperation agreements with Tanmia Petroleum, Enppi, and Petrojet to cooperate through Africa and the Middle East, according to an Oil Ministry statement. The agreements aim to foster cooperation between the parties to work together on engineering, supply, and construction projects related to petrochemicals, infrastructure, and industry.

FINANCIAL SERVICES-

CI Capital has launched a new research portal to expand investors’ access to its MENA research offering, the investment banking group said in a press release (pdf). The portal allows “institutional and high-net-worth investors” to access research publications, coverage lists, and forecasts for MENA-listed stocks, while facilitating direct interaction with CI Capital's analysts.

What they said: “We are excited to introduce our new research portal, which reflects an important step in our digital transformation strategy. This platform will streamline access to our research, providing enhanced tools and timely insights, while also facilitating more efficient scheduling of analyst interactions and easy access to financial models. Although this marks a crucial advancement, we recognize its arrival as a timely development to our research capabilities," said Managing Director and Head of Research Monsef Morsy.

MANUFACTURING-

Alstom has launched a tender for the construction of its planned EUR 80 mn Borg El Arab railway manufacturing complex, which was sent by the French rolling stock manufacture to around 15 Egyptian contracting firms, Al Borsa reports. The winning company is set to be announced in February before construction begins in March, with the factory expected to begin production in 1Q 2027.

Remember: The cabinet last week approved extending Alstom's land lease period to 30 years from 15 years for the complex, which is expected to house two factories on 40 acres alongside an additional 50 feddans for future expansion. The first phase of the project’s development will see a components factory built on 13 acres, while the second phase will add a vehicle factory on 27 acres.

RENEWABLES-

Misr Beni Suef Cement will build an EGP 298 mn solar project in partnership with Chinese tech giant Huawei, Chinese solar module manufacturer Jinko Solar, and local renewables company Integrated Renewable & Sustainable Communities, the company said in a disclosure (pdf). The solar project will support the company’s efforts to power its industrial activities with renewables.

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ALSO ON OUR RADAR Alstom capital markets CI Capital energy ExxonMobil financial services oil and gas railways renewables solar power

PLANET FINANCE

Sukuk market is set to maintain its momentum this year

The global sukuk market is expected to keep the ball rolling well into 2025, with global issuances forecast to hit USD 190-200 bn this year, despite the spillover of geopolitical volatility in key sukuk markets, according to a report by global ratings agency S&P Global. As global liquidity conditions improve, FCY-denominated sukuk are set to account for USD 70-80 bn of the total volume this year — compared to USD 72.7 bn in 2024. Sustainable sukuk are expected to contribute around USD 10-12 bn — a slight increase from USD 11.9 bn last year.

This forecast follows a solid 2024 for the global sukuk market, with sukuk issuances totaling USD 193 bn, slightly down from USD 197.8 bn in 2023 due to tighter liquidity and fiscal constraints in Turkey and Pakistan. Meanwhile, total FCY sukuk taken to market were up 29% y-o-y to USD 72.7 bn last year, primarily driven by an uptick in borrowing activity from the GCC region led by Saudi Arabia, Malaysia, and Indonesia.

Monetary easing + geopolitical stability support the outlook: S&P sees monetary easing continuing, supporting the financing needs of major sukuk issuers, particularly in the GCC where diversification away from oil revenues trigger an expansion in financing needs, according to S&P. This accompanied by a stabilizing macroeconomy and supportive liquidity conditions should encourage issuers to debut more offerings.

A roadblock may be ahead: The sukuk market could face a shake-up in the coming years, with the expected downside risks of the Sharia Standard 62 by the Accounting and Auditing Organization for Islamic Institutions (AAOIFI) forecasted to take shape next year. If implemented, the new standard — which would shift the focus from contractual obligations to underlying assets — could increase sukuk issuance costs and introduce additional risks for investors, the rating agency wrote.

Want to go deeper in all things sukuk? Our favorite Islamic finance podcast Majlis & Markets by Hassan Jivraj covered the broader sukuk topic extensively — including Shariah standards 59 & 62 — with S&P Global Ratings’ Global Head of Islamic Finance Mohamed Damak and AAOIFI Secretary General Omar Ansari in two separate episodes.

MARKETS THIS MORNING-

Asian markets were mostly in the green this morning, following Wall Street’s mixed performance on the back of moves on tech stocks. Japan’s Nikkei was up 0.4%, while Shanghai Composite was down 0.2% in early trading. Meanwhile, Wall Street futures are slightly in the green as investors anticipate the US inflation report.

EGX30	28,967	+1.4% (YTD: -2.6%)
USD (CBE)	Buy 50.39	Sell 50.53
USD (CIB)	Buy 50.40	Sell 50.50
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,173	+0.5% (YTD: +1.1%)
ADX	9498	+0.4% (YTD: +0.8%)
DFM	5246	+0.3% (YTD: +1.7%)
S&P 500	5843	+0.1% (YTD: -0.7%)
FTSE 100	8202	-0.3% (YTD: +0.4%)
Euro Stoxx 50	4980	+0.5% (YTD: +1.7%)
Brent crude	USD 79.92	-1.4%
Natural gas (Nymex)	USD 3.93	-0.9%
Gold	USD 2691.90	+0.5%
BTC	USD 96,534.40	+2.5% (YTD: +3.0%)

THE CLOSING BELL-

The EGX30 rose 1.4% at yesterday’s close on turnover of EGP 3.7 bn (1.4% below the 90-day average). Regional investors were the sole net buyers. The index is down 2.6% YTD.

In the green: TMG Holding (+8.3%), Ezz Steel (+6.1%), and Egypt Kuwait Holding -EGP (+3.5%).

In the red: Cleopatra Hospitals (-2.3%), Emaar Misr (-2.2%), and Fawry (-1.8%).

CORPORATE ACTIONS-

#1- Ezz Steel’s board greenlit purchasing the shares of dissenting shareholders after delisting for EGP 138.15 per share, as established as the fair value of its shares by financial advisor BDO Keys Financial Consulting, the company said in an EGX disclosure (pdf)

Remember: The Financial Regulatory Authority gave its approval for Ezz Steel to begin procedures for delisting its shares from the EGX last month.

#2- QNB Al Ahli’s board has proposed a cash distribution dividend to shareholders of EGP 1.5 per share, the bank said in a disclosure (pdf) to the EGX. The proposal will be presented to the bank’s general assembly for approval.

Tags:

Financial Markets Planet Finance S&P Global

HARDHAT

A look at plans to improve Egypt's electricity infrastructure in 2025

Egypt’s electricity sector is undergoing a transformation to address growing challenges and improve its infrastructure. The government has invested heavily in the sector over the past 11 years, but recent hurdles — such as declining natural gas production from the Mediterranean’s Zohr field and rising demand — have forced a shift in priorities. The focus now is on ramping up renewables, modernizing grid systems, and ensuring consistent power throughout the summer — all of which require significant additional investments.

Why now? Declining natural gas production and a return to gas imports have raised new challenges for Egypt's energy mix, a senior government official told EnterpriseAM. Coupled with the global impact of the Russia-Ukraine war, soaring shipping costs, and currency exchange rate fluctuations, the electricity sector has had to adapt rapidly. These issues have increased Egypt’s import costs by over EGP 100 bn, highlighting the urgency of diversifying energy sources and modernizing infrastructure.

Renewables to the rescue: In light of this, the government is upping the ante with regard to its renewable energy targets, with plans to add 4 GW of solar and wind capacity to the grid by this summer. This push includes significant investments in new battery storage systems and grid upgrades to cut fuel consumption and energy losses, with these efforts having saved us some EGP 1.2 bn on a monthly basis over the last several months of 2024.

Grid upgrades and regulatory reforms are high on the sector’s list of priorities: Regional grid networks still require up to EGP 1.5 tn in investments by 2030 to modernize infrastructure and strengthen regional interconnectivity, our source told us. The sector also hopes to transition to an open electricity market in which multiple parties can sell electricity, in line with plans to position Egypt as a regional energy hub.

The government’s plans for the grid are already in motion: The Electricity Ministry aims to invest EGP 63 bn in grid upgrades by the end of FY 2024-25 to improve efficiency and accommodate growing demand. The government is also focused on connecting more and more renewable energy projects to the grid, particularly through the elimination of integration fees. In addition, the Electricity Ministry is working to develop the electricity transmission system, with 780 new transformer stations built so far.

Big wind and solar projects are expected to come online this year: Several major projects are poised to change the energy game in 2025. AMEA’s Amunet wind project should see 500 MW of a larger 1.5 GW project come online this summer, while the company’s Benban solar plant is expected to begin producing 300 MW of power this August as part of a larger 1 GW project. Meanwhile, a local-international consortium of Orascom Construction, Engie, Toyota Tsusho, and Eurus Energy added 306 MW of a 650 MW wind farm project in Ras Ghareb to the national grid earlier this month, with the rest slated to come online by 3Q 2025.

Hydrogen blending and nuclear energy are also in the mix: A pilot program in Sharm El Sheikh is testing blending hydrogen into the natural gas system, with hopes that the stopgap measure will lessen natural gas requirements. Meanwhile, progress at the Dabaa nuclear plant is on track, with the first reactor’s core set to be received by July 2025 and installed by October 2025. Once operational, the Electricity Ministry expects nuclear energy to contribute 5% of Egypt’s total energy mix.

**We ran a two-part series on Egypt’s prospects for green hydrogen blending — alongside possible challenges — in a Going Green last year.

Digital transformation is powering the sector: The government’s focus on digitization in the electricity sector is already showing results. By 2025, 19.2 mn electricity customers will be connected to advanced monitoring systems, managed from a new digital consumption monitoring center in the New Administrative Capital. Smart and prepaid meters and integrated digital tools are also key to the government’s plan to streamline consumption management and reduce inefficiencies.

Regional connectivity plans are taking shape: Egypt is making headway in its electricity connectivity projects, with initial phases of the Egypt-Saudi grid link set to launch this year. Upgrades to the Egypt-Libya grid and stronger ties with Jordan are also in progress, bolstering Egypt’s position as a regional electricity hub.

Challenges ahead: Despite these promising developments, challenges persist. Currency instability and rising inter-sector debts require careful management, while the sheer scale of infrastructure modernization — including integrating older systems with new ones — presents added challenges.

Your top infrastructure stories for the week:

Eni’s planned fixed regasification unit in Damietta will cost USD 190 mn, up from a previous price tag of USD 150 mn that a government official told EnterpriseAM when we first heard of the plan back in August.
A blackout-free summer in 2025? Egypt has secured enough energy supplies to ensure that the nation’s power plants can run at full capacity when the summer season approaches and demand jumps, Electricity Minister Mahmoud Esmat said.
The national grid just got a little greener, with 306 MW of a 650 MW wind farm in Ras Ghareb being developed by a local-international consortium of Orascom Construction, Engie, Toyota Tsusho, and Eurus Energy now online. The entire project is expected to be up and running and connected to the national grid by 3Q 2025.

Tags:

Hardhat infrastructure renewable energy

CALENDAR

JANUARY

15 January (Wednesday): Launch of Egypt’s first joint-stock ship waste management company in Port Said.

18 January (Saturday): Soil Spaces launch event, Mivida, New Cairo

20-24 January (Monday-Friday): World Economic Forum Annual Meeting

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

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Health Ministry finalizes partnership with Gustave Roussy to operate Dar El Salam Hospital.

CBE to launch InstaPay remittances for Egyptians abroad

Building permit applications in Egypt's new cities will go online

Accor Group to open Sofitel Cairo Downtown Nile, the world’s largest Sofitel.

Egyptian National Railways to launch tender for Tanta-Mansoura-Damietta railway line upgrades

Food products will require food safety and validity certificates from the National Food Safety Authority (NFSA)

Bavarian Delegation visit to Egypt

FEBRUARY

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.

2 February: Energy Day Conference, Cairo, Egypt.

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.

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

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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