Bonyan kicks off IPO

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What We're Tracking Today

Cabinet will discuss electricity pricing scenarios this week

Good morning, all. We kick off the week with a packed issue, led by Bonyan kicking off its IPO, the House approving amendments that scrap the Old Rent Law, and the IMF combining the fifth and sixth reviews of our USD 8 bn program.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 36°C and a low of 25°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 22°C.

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WATCH THIS SPACE-

#1- The cabinet will discuss electricity pricing scenarios this week amid budgetary pressures, as the country’s increasing reliance on costly LNG imports push up the county’s energy import bill, a government source told EnterpriseAM. The options include a progressive price hike on households of up to 20% for the highest consumption brackets and postponing any hikes to September to shield citizens from inflationary pressures

REMEMBER- The government scrapped five-year-old electricity price breaks for industry players on extra-high, high, and medium voltages last week on the back of the very same budgetary concerns.

#2- Cement companies have a one-month deadline to restart production, under a directive from Deputy Prime Minister for Industrial Development Kamel El Wazir, according to a cabinet statement at the end of last week. The Industry Ministry and other state entities will begin a nationwide inspection of cement factories to ensure that factories are able and committed to restarting production. Meeting local demand will be the sector's first priority, with any surplus to be earmarked for export, said El Wazir.

REMEMBER-Energy-intensive industries like cement are often the first to see their energy supplies cut when the country faces an energy squeeze. Most recently, the war between Israel and Iran last month pushed the Oil Ministry to cut off around 900 mcf/d of gas to energy-intensive industries and to suspend diesel and mazut deliveries to food and cement factories for 14 days to divert more fuel to power stations, sources told EnterpriseAM at the time.

PROJECT UPDATE-

Ras Ghareb wind farm is now fully online: The Red Sea Wind Energy consortium has fully commissioned its 650 MW wind farm in Ras Ghareb, with the final 150 MW phase entering commercial operations four months ahead of schedule, according to a press release. This follows the early delivery of the first two phases (306 MW in January and 194 MW in April). All units are now connected to the national grid.

BACKGROUND- The project was developed under a 25-year build-own-operate contract by a consortium including France’s Engie (35%), Orascom Construction (25%), Toyota Tsusho Corporation (20%), and Eurus Energy (20%). Orascom handled the full EPC scope, while Goldwind International supplied, installed, and commissioned the project’s 104 wind turbines.

And a new project brewing? The consortium has begun evaluation and early development work for a planned 900 MW wind farm on a nearby land plot adjacent to the current project site, according to the press release.

HAPPENING TODAY-

#1- Fingers crossed for the non-oil private sector moving back into the green. S&P Global will release its PMI report measuring non-oil private sector activity for June later this morning. There’s reason to be hopeful, with the S&P’s last report showing the country’s headline figure for May rising to just 0.5 percentage points shy of the 50.0 mark threshold separating contraction from growth.

#2- The two-day annual Brics Summit is kicking off today in Brazil’s Rio de Janeiro, marking the first time the bloc of nations has met since US President Donald Trump returned to the White House. Some of the Trump administration’s most punitive tariffs have been focused on Brics members and Trump even threatened tariffs of 100% or 150% if the bloc attempts to launch a common currency or undermine the USD’s status as the global reserve currency.

Egyptian representation: Prime Minister Moustafa Madbouly flew to Brazil yesterday to take part in the summit, according to a cabinet statement.

Kouchouk pushes for Brics regional links: Finance Minister Ahmed Kouchouk — who is also in Brazil for the sumit — met with his Brazilian counterpart, Fernando Haddad to discuss boosting economic and investment cooperation between Brics members, as well as facilitating trade, according to a statement. Separately, the Kouchouk also met with Maxim Oreshkin, Russia’s special representative of the President of Russia for financial and economic cooperation with Brics, to discuss joint financing for infrastructure and energy projects.

IN THE HOUSE-

The House is in session: MPs will convene today through Tuesday to discuss and vote on a raft of bills — a draft law authorizing the Oil Minister to contract the Egyptian Mineral Resources Authority and Centamin to exploit gold and associated minerals in the flagship Sukari area, amendments to the 2014 law regulating the affairs of non-special-statute medical professionals working in Health Ministry-affiliated entities, and a presidential decree regarding the funding agreement with Spain for the feasibility study on extending Cairo Metro Line 1.

THE BIG STORY ABROAD-

Trump’s Gaza ceasefire push sees mixed responses: US President Donald Trump said on Friday there “could be a Gaza deal next week” after Hamas responded in a “positive spirit” to his administration’s proposal for a 60-day ceasefire. The plan, which Trump labelled a “final proposal,” sees Hamas releasing half of the roughly 50 hostages it still holds and entering talks to end the war. Trump told reporters that he remains “very optimistic” but had yet to be briefed on the specifics.

Israel says Hamas changes are ‘unacceptable’ but will resume talks: While Hamas said it was ready to immediately enter a new round of negotiations on the US-brokered ceasefire, Israeli Prime Minister Benjamin Netanyahu’s office said the changes Hamas requested were “unacceptable.” Still, Israel will send a delegation to Qatar today to continue negotiations, aiming to secure the hostages’ release. Netanyahu is also expected to meet Trump in Washington on Monday, where the ceasefire agreement will top the agenda.

Bloodshed continues as talks loom: Over the weekend, Israeli airstrikes killed at least 138 Palestinians, including 15 people in an overnight attack on a tent encampment near Khan Younis, according to local health officials. (Reuters | Bloomberg | The Guardian | FT)

AND- Musk launches ‘America Party:’ Former Trump adviser Elon Musk announced the formation of the America Party on Saturday, saying it will “give you back your freedom” after an X poll showed strong support for a new US political party. (Reuters | The Guardian | Axios | New York Times)

Bonyan to kick off the EGX’s first full IPO of the year today

Real estate investment firm Bonyan is looking to raise EGP 1.8 bn by taking the company public, the company said in its IPO prospectus. The listing will offer up a 20–21.9% stake in the company through its retail and institutional tranches launching today with an indicative price range set at EGP 4.96–5.44 per share, while the independent financial advisor valued the stock at a fair value of EGP 7.52 a pop.

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Institutional investors will be allowed to compete for 95% of the 362.9 mn shares on offer — representing 20.8% of the company — until the institutional subscription round closes on 10 July, according to the IPO prospectus. Institutional investors will be able to acquire a minimum of EGP 10 mn, while high-net worth individuals can subscribe to the private placement tranche with a minimum of EGP 1 mn.

Retail investors will be able to buy up 5% of the shares on offer — representing some 1.1% of the company — until the close of the public offering on 15 July. Retail investors will be able to acquire a minimum of 100 shares and a maximum of 200k shares with a 30-day, 100% share price stability mechanism. The final offering price will be announced on July 11.

Bonyan’s entrance onto the EGX marks the only proper IPO of the year, in addition to being the first pure-play real estate operating company to list on the local bourse ever.

The real estate player will also embark on a EGP 250 mn capital increase, which will be done through a closed subscription from sole shareholder Sky Realty Holding across 50.4 mn shares.

ADVISORS- CI Capital and Arqaam Capital are leading the IPO as coordinators and bookrunners, with Mubasher acting as the offering agent. Matouk Bassiouny & Hennawy is serving as counsel, Baker Tilly is acting as the independent financial advisor, and PwC as auditor.

A wave of companies is lining up to make their debut on the EGX — though most have yet to officially file for listing. Among those preparing to list either this year or later are Al Ahly Sabbour, Damietta Container and Cargo Handling, Korra Energi, El Attal Holding, Royal House, Al Ahly Group for Modern Agriculture, Smart Villages, Tabarak Holding, Enara Group, Basata Holding for Financial Investments, GoBus, MO Group for Food Industries, SIAC Holding, Adeer, Arabia Holding, Friday Ice Cream, Al Gioshy Steel, Sun Way Egypt, Canal Company for Mooring and Lights, Port Said Container & Cargo Handling, Rakhaa for Agricultural Investment and Development, and a Talaat Moustafa Group subsidiary.

Old Rent Law to be scrapped after seven-year transitional period after House green light

The House gave its final approval to controversial amendments to overhaul decades-old rent law on Wednesday, despite pushback from several MPs over the article setting a seven-year transitional period to vacate residential units.

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The law sets a seven-year transitional period for residential units and five years for non-residential units rented by individuals. After the transition, tenants must vacate the property, with all old rent regulations scrapped at the end of the period.

“Old rent” will see steep increases during the transitional period:

Residential units in “premium” areas: 20x the current “old rent,” with a minimum of EGP 1k per month.
Residential units in “middle-income” areas: 10x current rents, minimum EGP 400.
Residential units in “lower-income” areas: 10x current rents, minimum EGP 250.
For non-residential units rented by individuals, the increase is set at 5x current rents.
Rents will continue to rise 15% each year throughout the transitional period, whether for residential or non-residential purposes.

How will it play out? A committee will be formed in each governorate to classify properties into each of the three categories based on factors like location, building condition, infrastructure, transport, and local services.

“The state will not allow anyone to be left homeless,” said Parliamentary Affairs Minister Mahmoud Fawzy in reference to an amendment to obligate the government to provide the original tenant or spouse under an extended contract state housing for rent or ownership.

Properties can now be reclaimed if they haven’t been occupied for a year, unless there is a reason to explain why the property had been left vacant. Landlords can also reclaim properties if tenants own another usable unit for the same purpose.

WHAT'S NEXT- The bill will be passed to President Abdel Fattah El Sisi to sign into law.

FinMin to apply a zero VAT rate on select exported services

Gov’t to apply a zero VAT rate on select exported services: The Finance Ministry is currently working on a draft decision that would see the application of a zero VAT rate on exported services, provided that the service recipient is outside the country and the service provider is local, three government sources told EnterpriseAM.

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The move would represent a breakthrough in promoting investments, as well as franchising, outsourcing, and other services provided by local suppliers to foreign companies or importers, boosting the value of exports and position Egypt as an international hub for outsourced services, our sources said.

Although a zero VAT rate law for exported services was already issued back in 2016, a lack of clarity regarding its implementation mechanisms has led to the provision not being applied, our sources explained.

What’s different this time around: The ministry’s decision will lay out the exemption mechanism and the eligible beneficiaries of the zero VAT rate. Services including outsourcing, digital marketing, professional consulting, website design, cybersecurity, the organization of outbound tourism trips, services provided to global companies, and contract manufacturing for third parties under fixed-term binding agreements will be among the list of services eligible for the zero VAT rate.

The details: If the service provider is foreign and the service recipient is in Egypt, the service will be subject to the VAT rates set by law — 10% for consulting services and 14% for other services, excluding internet services (which are taxed at 8%). A reverse charge will be applied if the foreign service provider does not register under the simplified system with the Egyptian Tax Authority (ETA) in the foreign suppliers registry to benefit from the exemption — either the foreign provider pays the tax in their own country, or a reverse charge is applied, and the local recipient of the service is liable to pay the charge, our sources explained. This applies to services such as franchising for global brands operating in Egypt, they added.

Companies exporting their services abroad — particularly tech services — and enjoying zero VAT treatment, will be eligible for export subsidies, our sources said.

As for pilgrimage services, the organization of pilgrimage and Umrah trips will be totally exempted, given that they already enjoy multiple exemptions. As such, they are considered partly local and partly exported services, and will therefore fall under the exemption category, the sources explained.

Most analysts see the CBE holding rates this week- EnterpriseAM poll

Most analysts see the MPC holding rates this week: A slim majority of analysts surveyed by EnterpriseAM expect the Central Bank of Egypt to hold interest rates when its Monetary Policy Committee (MPC) meets on Thursday. Five of the experts we spoke to see the committee pausing its easing cycle this week, while three others expect a cut between 100-175 bps.

REMEMBER- The CBE cut interest rates by 100 bps in its third meeting of the year back in May. The move marked the MPC’s second consecutive change to the policy rates since March 2024, following seven consecutive meetings where rates were held steady. It is also the bank’s second rate cut since November 2020.

Where rates currently stand: The overnight deposit rate stands at 24.00%, the overnight lending rate at 25.00%, and the main operation and disc. rates at 24.50%.

Both scenarios are possible, but a hold is the most probable: “There is an 80% probability that the CBE will keep interest rates unchanged during its upcoming meeting, and a 20% possibility of a 100 bps cut if the decline in USD (against EGP) helps to balance inflation,” Ahly Pharos Head of Research Hany Genena told EnterpriseAM. The inflation outlook is “positive”, Genena added, noting that the geopolitical tensions’ impact has already receded after the conflict came to a halt. However, the CBE is likely to cut interest rates by around 200 bps during its meeting in August, Genena said. Thndr Securities Brokerage’s Amr El Alfy similarly sees the CBE keeping rates unchanged, before cutting rates by 100 bps when it meets in August.

“The most likely scenario for the upcoming meeting is to maintain interest rates, not because of the lack of desire for stimulus, but because maintaining financial stability and the investment climate has become a priority,” banking expert Hany Abou El Fotouh told us. Any move — be it cutting or raising rates — might be premature now and could confuse the market more than it helps, Abou El Fotouh added. HC Securities’ Heba Mounir agreed with this notion, saying that “based on our expectation of domestic inflationary pressures, geopolitical tensions, and tariff threats in July, we expect the MPC to maintain policy rates at its upcoming meeting.”

However, the outlook for oil prices — a highly influential factor for inflation in Egypt — is negative, due to oil production surpluses in Saudi Arabia and the UAE, Genena said. In addition, oil prices are under “severe pressure”, Genena noted, with Brent crude now priced at USD 65.95 per barrel, after having hit USD 75 per barrel during the past two weeks.

Our carry trade remains attractive: “The latest one-year t-bills auction of 24.8% implies a positive yield of 5.2% using our 12M inflation estimate of 16.0% (after deducting a 15% tax rate for European and US investors),” Monir told us. The average required rate of return by foreign investors on the 12M t-bills declined to 27.2% from 28.0% in May. This suggests that “Egypt’s carry trade remains attractive, especially considering further rate cuts by other developed economies,” according to Monir.

Other analysts anticipate a cut: “We are forecasting for the CBE to cut interest rates by 100 bps, taking the overnight deposit rate to 23.00%, at the meeting in July,” Capital Economics’ James Swanston told EnterpriseAM. Swanston added that “the global backdrop with conflict has subsided that will remove that risk and real interest rates remain significantly positive to reduce interest rates, despite the uptick in inflation in May's data”.

Easing price pressures and geopolitical tensions could create the conditions for a cut: “In light of the relative easing in prices and the stable situation in the region, we might see a cut, even if a slight one — around 100 bps,” Beltone’s Ahmed Hafez told us. These factors, coupled with exchange rate stability, signs of growth in most macroeconomic indicators, and a drop in unemployment and increased job creation are indicators that — if present — would likely prompt the MPC to extend its monetary easing cycle, banking expert Mohamed Abdel Aal told us, penciling in a prediction of a cut of between 100-175 bps.

As for inflation: Abdel Aal expects June’s inflation reading to slow down to 16.2%, which he attributed to the absence of new, influential, or sustained inflationary pressures. Meanwhile, Hafez expects an inflation reading to drop to around 15.5% — a prediction that he bases on preliminary readings for food prices for June.

REMEMBER- Annual headline urban inflation rose for the third month running in May to 16.8%, up from the 13.9% recorded in April. On a monthly basis, inflation rose 0.6 percentage points to 1.9%. The reading was driven by a rise in food and beverage price inflation, which rose by 11.0% y-o-y.

IMF to combine fifth, sixth loan reviews to give Egypt time to meet reform targets

The International Monetary Fund has decided to combine the fifth and sixth reviews of Egypt’s USD 8 bn Extended Fund Facility Arrangement, IMF Communications Director Julie Kozack confirmed in a press briefing on Thursday following earlier unconfirmed reports.

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A combined review also means a delayed review, which the Fund now expects to take place in the fall — along with the USD 1.3 bn tranche that the government had been expecting to land in state coffers this month.

“More time is needed” to make progress on the state withdrawing itself from the economy and the broader reform agenda, Kozack said. Although “Egypt continues to make progress under its macroeconomic reform program,” more needs to be done to enable the “private sector to drive stronger and more sustainable growth” and “advancing the state ownership policy and asset [divestment] program.”

The size of the combined tranche is TBD. “It would be premature for me to speculate at this stage” on the size of the combined tranche as the country’s financing need to be assessed in ongoing discussions, said Kozack

The first review of the USD 1.3 bnResilience and Sustainability Facility will also take place alongside the sixth review, according to Kozack. The climate-focused fund has already been approved on schedule.

The international press also took note of the announcement: Reuters.

Robin: A new data science and AI player

Introducing Robin: Our friends at Beltone Holding have officially launched their data science and AI subsidiary Robin, according to a press release (pdf). Based in Cairo, Robin will equip “organizations with practical data & AI skills that can be immediately applied to drive smarter decisions and long-term success,” with a focus on large corporates and startups across Egypt and the MENA region.

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What’s being offered? Robin will offer a portfolio of data and AI advisory services that guide business from data preparation to implementation, the release said, explaining that the suite of services can transform raw data into strategy, structure, and scalable value.

What they said: “Robin was founded on the belief that data is not just a support tool, but the foundation for driving impactful business growth,” said Basma Rady, Beltone’s Chief Data Scientist and Robin’s Managing Director.

Robin already has a track record: “Robin was established in 2024 on the conviction that small and mid‑sized businesses can only scale if they tap the power of data science,” Rady told EnterpriseAM. “Although we’re formally launching to the wider market now, we’ve been working with clients for more than a year.” Robin has delivered over 100 projects to dozens of organisations across Egypt, the Gulf, and North Africa — and we’re onboarding new clients every month, she added.

How Robin works: Robin services revolve around three key pillars; analytics capability‑building, end-to-end AI implementation, and upskilling for the age of AI, Rady said. “We design and set up in‑house data and analytics teams so clients can use data and AI confidently. We roll up our sleeves and build the foundations ourselves: data pipelines, dashboards, predictive and recommendation models — all tailored to each client’s growth stage. And we run highly customized workshops.”

Which sectors are targeted? “We’re active in financial services, ins., real estate, e‑commerce, hospitality, and logistics, but we also see clear value for healthcare, manufacturing — even public‑policy work. The common thread is embedding data in day‑to‑day decision‑making,” Rady told us.

Why should executives invest in Robin’s services? “ROI shows up in three ways — revenue uplift thanks to better cross-selling and decisions driven by insights, time-to-insight by turning weekly or monthly reporting cycles into real-time dashboards, and cost and risk optimization through cleaner customer data and smarter resource allocation,” she added.

What about data security? “Data never leaves the client’s environment unless they ask us to host it,” Rady said. “We typically access the data and extract the data from the client's side. For clients who prefer a managed environment, we spin up a segregated infrastructure instance that’s fenced off from every other engagement. We also operate on a strict ‘need‑to‑know’ basis, stripping out personally identifiable information and complying with local regulations.”

Looking ahead: “Global expansion is already under way — we’re active in the Gulf and North Africa and are now scoping opportunities in other markets.”

Chinese glassware company begins construction of USD 70 mn SCZone factory

China’s Deli Glass Co broke ground on a new USD 70 mn factory for glassware goods in the China-Egypt TEDA trade zone, according to a statement from the Suez Canal Economic Zone (SCZone). The first phase of the factory is expected to kick off operations in 2H 2026.

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Export is the name of the game, with some 80% of the goods produced at the facility earmarked for export. The 120k sqm factory is expected to create 500 direct jobs. The project’s target annual production capacity was not disclosed.

DATA POINT- The SCZone signed investment agreements totalling USD 4.4 bn in the previous fiscal year across 121 projects, according to SCZone Chairman Walid Gamal El Din. Zooming out to the last three years, the zone accumulated agreements for investments totaling USD 8.5 bn over 297 projects.

Five Czech Firms explore local investments

Egypt is courting a wave of Czech industrial investment, with five companies exploring potential investments in chemicals, manufacturing, textiles, and medical equipment, according to a statement. This came during meetings between Investment Minister Hassan El Khatib and representatives from five Czech companies during his time in Prague.

Chemicals player Draslovka is considering relocating one of its factories to Egypt. The company is already working on a USD 160 mn sodium cyanide production facility in Alexandria’s Sidi Kerir industrial zone — in partnership with Austria’s Petrochemicals Holding Company. The plant would be the first of its kind in MENA.

Pump manufacturer Sigma Group is also weighing a manufacturing push, with CEO Lubos Michlík and El Khatib discussing the possibility of the company co-producing water pump spare parts with the Arab Organization for Industrialization. Sigma already operates in Egypt’s water treatment space. Michlík is set to visit Cairo next month to explore partial manufacturing for some of its product lines.

Textiles player PFNonwovens is considering expanding its investment in Egypt, where it operates a polypropylene textile manufacturing project valued at around USD 100 mn. CFO Jindřich Lhota discussed the potential expansion during a meeting with El Khatib.

Medical and mining tech investments are also on the table. El Khatib met with Linet Group’s Alexandr Jernek to discuss producing hospital beds and medical supplies in Egypt. While, talks with representatives from mining exploration tech player Modelarna Liaz.

El Khatib participated in the second Egyptian-Czech Joint Economic Committee — the first such gathering in nine years, according to a statement.

Egyptian Mina Rizk elected independent chairperson of FAO Council

Mina Rizk is the FAO’s new council chair: The UN’s Food and Agriculture Organization (FAO) unanimously elected Egyptian diplomat Mina Rizk as independent chairperson of the FAO Council for a four‑year term, according to the organization’s website. Rizk is the youngest and the first Egyptian to lead the FAO Council, steering discussions on global food security, climate resilience, and sustainable agrifood policies over the next four years. He previously chaired FAO’s Finance Committee.

Another deadly crash in Menoufia

Menoufia’s regional road once again dominated the airwaves after another tragic crash claimed the lives of nine and injured 10 others. President Abdel Fattah El Sisi has ordered the government to close parts of the regional ring road currently undergoing maintenance to ensure public safety and accelerate upgrade works. El Sisi also directed the Interior Ministry to take legal action against violators and intensify enforcement of speed and weight limits nationwide.

Adib backs El Sisi’s decision: El Hekaya’s Amr Adib (watch, runtime: 02:18) supported El Sisi’s order, saying “I know Egyptian officials are used to ignoring public calls, but what the president did today protects the country.”

ICYMI- Another deadly crash in Menoufia last week claimed the lives of 19 young girls, triggering public anger over road conditions.

MPs should summon officials: Adib questioned why no officials have been called to stand before the parliament despite repeated accidents on the road, noting that “this would reassure Egyptians.” (watch, runtime: 01:39).

More units at the Robbiki Leather City up for grabs

MANUFACTURING-

A total of 36 fully equipped units are being offered up under the third phase of the Robbiki Leather City in Badr City, the Industry Ministry said in a statement. The units with factory sizes ranging from 121 to 2k sqm — for rent or ownership — will be on offer until 27 July through the Made in Egypt platform.

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HOSPITALITY-

China’s Gaund Holding Group is working towards launching its first floating hotel as part of a larger project of five floating hotels in Egypt, according to a Tourism Ministry statement. Representatives from the company met with officials from the ministry last year to discuss its Nile cruise plans in addition to facilitating charter flights from China to Egypt — and particularly the Red Sea — as part of a wider push to increase Chinese tourist traffic to Egypt.

M&A -

Orascom Investment Holding’s general assembly approved the EGP 502 mn acquisition of a 100% stake in Misr for Entertainment Investments, the company said in a disclosure (pdf) to the EGX. The agreement also covers the company’s subsidiaries and will be financed from internal resources.

The acquisition has been in the works since at least November 2024, when Orascom Investment Holding’s non-executive expert directors and independent directors approved the acquisition in principle and decided to hire an independent financial advisor to conduct a fair value study of the company.

EXPANSION-

#1- Egyptian contractors land Libyan contracts: Libya’s Reconstruction and Development Fund has signed contracts with Egypt’s Organi Group and Wadi El Nile Contracting to implement key infrastructure projects across several cities, Al Arabiya reports.

What’s in the pipeline? Wadi El Nile will handle the second phase of the Bakour bridge and road, electrical works along the Tobruk-Emssaed road, and surface works for the Cement Bridge and Tayara Island in Benghazi.

#2- BluEV targets Morocco expansion with USD 100 mn investment: Local e-mobility company BluEV plans to enter the Moroccan market before the end of this year with a USD 100 mn investment to roll out its electric motorcycle conversion platform, co-founder and CEO Rida Baalbaki told Asharq Business.

Part of a wider regional push: “Entering the Moroccan market is part of our gradual expansion strategy across North Africa and the Middle East,” Baalbaki said, adding that BluEV aims to expand its operations to cover all of Egypt within five years. The company currently operates over 50 battery-swapping stations in East Cairo, Alexandria, Ismailia, the North Coast, and Gouna.

AUTOMOTIVE-

GB Auto will start assembling one of China’s Great Wall Motor models in 4Q 2025, with plans to roll out 5-6k vehicles a year, Haval Franchise Assistant Vice President Mohamed Mourad told Asharq Business. The company is also planning to increase sales of Haval models by 128% y-o-y by the end of the calendar year, he added.

DIPLOMACY-

The Irrigation Ministry called out Ethiopia’s completion of the Grand Ethiopian Renaissance Dam as a violation of international law, as it lacked an agreement with Sudan and Egypt as downstream nations, according to a ministry statement. The ministry further called out “persistent lack of political will on the Ethiopian side” and accused the country of trying to “impose water hegemony, rather than embracing the principles of cooperation and equitable partnership.”

Hong Kong reclaims IPO crown as Chinese firms flood market with dual listings

Hong Kong is on track to overtake Nasdaq and the New York Stock Exchange as the world’s top IPO venue this year, as Chinese companies fuel a dramatic rebound in equity fundraising on the exchange, CNBC reports. Listings surged eightfold to USD 14 bn in 1H 2025 on the Hong Kong Stock Exchange — the highest since 2021 — as firms rushed to tap resurgent investor demand, according to data.

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The momentum will likely continue into 2H: Some 90-100 IPOs are expected to bring in upwards of USD 25.5 bn in proceeds in 2025, according to PwC.

Secondary listings from China are fueling the rebound: Much of the momentum stems from a wave of secondary listings by mainland firms, seeking to diversify funding sources, with at least 40 of the 200+ IPO candidates already listed on Chinese exchanges, according to Wind data. In May, Chinese battery giant CATL raised over USD 5 bn in a Hong Kong secondary listing — the largest such transaction globally this year.

Hong Kong’s rally and the influx from mainland China is also fueled further by the arrival of DeepSeek at the start of the year. Paired with stilted growth from China’s CS1 300, mainland investors have increasingly looked to better returns on equities in Hong Kong instead.

Beijing’s regulatory push is another key tailwind: Officials have fast-tracked offshore IPO approvals for qualified tech firms, while Hong Kong’s new Tech Enterprises Channel, launched in May, accelerates listings for AI and biotech companies. These policies “have provided a much-needed shot in the arm,” Dealogic’s Perris Lee said. Hong Kong is now seen as more “inclusive” of emerging sectors, BNP Paribas’ Wei Li added, making it a draw for firms with global ambitions.

It’s also benefitting from the shift away from the US amid geopolitical tensions and delisting risks. Despite this, New York’s exchanges — NYSE and Nasdaq — were bigger than Hong Kong overall in 1H, with some USD 16.2 bn in listings, according to PwC.

A sharp reversal from 2024: In December, Hong Kong’s Hang Seng stock market dropped 1.4% amid a sea of red across Asian indices, with China’s CSI 300 down 0.9% and Japan’s Nikkei off 1.2%, as investors weighed Beijing’s stimulus pledges against sluggish growth.

EGX30	31,820	+0.4% (YTD: +10.4%)
USD (CBE)	Buy 49.28	Sell 49.41
USD (CIB)	Buy 49.31	Sell 49.41
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	11,244	+1.0% (YTD: -6.6%)
ADX	9,982	0.0% (YTD: +6.0%)
DFM	5,753	+0.1% (YTD: +11.5%)
S&P 500	6,279	+0.8% (YTD: +6.8%)
FTSE 100	8,823	0.0% (YTD: +8.0%)
Euro Stoxx 50	5,289	-1.0% (YTD: +8.0%)
Brent crude	USD 68.30	-0.7%
Natural gas (Nymex)	USD 3.39	-0.7%
Gold	USD 3,347	+0.1%
BTC	USD 108,125	-0.1% (YTD: +15.6%)
S&P Egypt Sovereign Bond Index	878.5	+0.1% (YTD: +13.0%)
S&P MENA Bond & Sukuk	145.8	-0.1% (YTD: +4.2%)
VIX (Volatility Index)	17.48	+6.7% (YTD: +0.8%)

THE CLOSING BELL-

The EGX30 rose 0.4% at Wednesday’s close on turnover of EGP 5.2 bn (5.7% above the 90-day average). Local investors were the sole net buyers. The index is up 10.4% YTD.

In the green: Orascom Construction (+4.4%), Palm Hills Developments (+4.2%), and Orascom Development (+3.0%).

In the red: Telecom Egypt (-1.9%), Emaar Misr (-1.1%), and Abou Qir Fertilizers (-0.8%).

CALENDAR

JULY

6 July (Sunday): S&P Global to release Egypt’s Purchasing Managers Index report for June

6-7 July (Sunday-Monday): Brics Summit, Rio de Janeiro

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

10 July (Thursday): Capmas to release inflation data for June

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

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

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

7 August (Thursday): The Finance Ministry to begin disbursement of 50% of exporters’ pre-June 2024 dues over a four-year plan.

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

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

SEPTEMBER

The Egyptian-Moroccan Business Council to send a delegation of 23 local companies to Rabat.

The Engineering Export Council of Egypt will ship a commercial delegation to Russia to ramp up exports to European markets.

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

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

OCTOBER

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

7 October (Tuesday): The 2025 EnterpriseAM Egypt Forum.

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

October: The third iteration of the Export Smart Exhibition and Conference.

NOVEMBER

16-19 November: Cairo ICT 2025, Egypt International Exhibition Centre.

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

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

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

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

Early 2026: Passenger operations on the New Administrative Capital–Nasr City monorail scheduled to begin.

1Q 2026: Trial operations for the Ain Sokhna–Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

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

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

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