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Monday, 14 Oct 2024

What We’re Tracking Today
Poll
Financial Services
Debt Watch
Moves
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar

CBE to leave rates unchanged on Thursday -Poll

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Today at a glance

1

POLL

CBE expected to keep rates unchanged when it meets on Thursday.
2

FINANCIAL SERVICES

FRA suspends issuing new microfinance, consumer finance licenses.
3

LAST NIGHT’S TALK SHOWS

Train crash in Minya kills 1, injures 19.
4

ALSO ON OUR RADAR

Egypt is getting EUR 7 mn from the EU to support water sustainability, green transition.
5

WHAT WE’RE TRACKING TODAY

What does the IMF slashing surcharges mean for Egypt?
6

WHAT WE’RE TRACKING TODAY

Kuwait is mulling converting its CBE deposits into investments -report.
7

DEBT WATCH

EFG Finance’s Bedaya issues EGP 1.4 bn in securitized bonds.
8

PLANET FINANCE

Middle East PE and VC investments surge in 3Q.
9

BLACKBOARD

2024 higher education rankings show Egyptian universities steadily creeping up the list.

Monday, 14 Oct 2024

What We’re Tracking Today
Poll
Financial Services
Debt Watch
Moves
Last Night’s Talk Shows
Also On Our Radar
Planet Finance
Blackboard
Calendar
1

WHAT WE’RE TRACKING TODAY

What does the IMF slashing surcharges mean for Egypt?

Good morning, all. The newsflow is picking up with Cairo Water Week in full swing, GEM kicking off partial trial operations in days, and the central bank’s Monetary Policy Committee meeting scheduled for Thursday.

WATCH THIS SPACE-

#1- The IMF’s recently announced plan to cut surcharges could save us a whole lot of dough, officials tell Enterprise: Egypt stands to save between USD 300-400 mn thanks to the IMF reducing surcharges, a government source told Enterprise. Before the decision to cut fees by an average of 36% starting next month, Egypt had been forecasted to pay the IMF USD 646 mn in surcharges over the next five years — marking it as the world’s fourth largest surcharge payer — according to the Centre for Economic Policy Research.

We’ll soon have a more precise figure of how much we need to pay in surcharges going forwards as the government and the Fund discuss the country’s new discounted rates and its repayment timelines in the coming days, the source added.

AND- Georgieva could visit soon: The necessary arrangements are underway for IMF Managing Director Kristalina Georgieva to visit the country to follow up on the Fund’s cooperation with the government, according to a statement.

#2- Another GCC nation is looking to convert its deposits into investments? Kuwait is reportedly mulling converting its deposits in the CBE — amounting to USD 4 bn, according to the CBE’s most recent data(pdf) — into direct investments, unnamed sources told Al Mal. They also noted ongoing discussions between high-level officials on large-scale investments in the local market, with Kuwait’s Sovereign Wealth Fund KIA eying potential investments in both public and private sector companies.

Kuwait isn’t the only one looking to turn its deposits into investments: Saudi Investment Minister Khalid Al Falih told Prime Minister Moustafa Madbouly in August that the kingdom was looking to convert some of its USD 5.3 bn worth of deposits at the CBE into investments.

PSA-

WEATHER- Cairo is looking at moderate breeze today and a high of 32°C and a low of 22°C, according to our favorite weather app.

It’s cooler in Alexandria, with a high of 30°C and a low of 21°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.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at Egypt’s local router manufacturing industry. Check out the story here.

HAPPENING THIS WEEK-

#1- GEM to launch partial trial operations on Wednesday ahead of grand opening, Prime Minister Moustafa Madbouly said last week. The initial phase will see the museum’s main hall opened, with other sections to follow in a phased rollout ahead of a grand official inauguration.

#2- It’s interest rate decision time: The Central Bank of Egypt’s Monetary Policy Committee will meet this Thursday to decide on our interest rate trajectory. Our Enterprise poll sees the central bank leaving rates unchanged — Read the full story in the news well, below.

CIRCLE YOUR CALENDAR-

Cairo is hosting the UN’s World Urban Forum from 4-8 November, which will focus on “localizing the sustainable development goals” under the theme It All Starts at Home: Local Actions for Sustainable Cities and Communities. It will tackle issues including unaffordable housing, living costs, climate change, and current conflicts. You can register on the event’s official website.

Who will be there? Over 59 ministers from all over the world will be flying in to attend the forum, Prime Minister Moustafa Madbouly said.

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

CORRECTION- In yesterday’s issue of EnterpriseAM Egypt, we ran a story based on local media reports that GB Capital is looking to become an investment bank. An official from the company reached out to tell us that they are not and have no intention of becoming an investment bank. The story has been removed from our website.

ENTERPRISEAM IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. EnterpriseAM — the essential morning read on all the important news shaping business and the economy in Egypt, GCC, and the wider region — is looking for writers, reporters, and editors to help us build out new publications.

NEVER WORKED IN A NEWSROOM BEFORE? We have the EnterpriseAM Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the EnterpriseAM Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors, and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists on subject matter knowledge, while also working on constructing and filing EnterpriseAM stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

THE BIG STORY ABROAD-

It’s a quiet morning on global business front pages, but that should change as the week grinds on.

Is Trump just horsing around about allowing the greenback to weaken? A top Trump economic advisor says The Donald is merely posturing about weakening the USD and turning away from global trade. Hedge fund manager Scott Bessent, who some pundits think could be the Republican’s pick for Treasury Secretary, made the remarks in a conversation with the Financial Times, telling the salmon-colored paper that Trump wants the greenback to “remain the world’s reserve currency” and that he’s using the threat of tariffs “as a negotiating tactic.”

In security news: The US has sent Israel advanced anti-missile systems and 100 troops to run them as tensions between Tel Aviv and Tehran continue to boil. In Asia, China has begun large military exercises around Taiwan — the war games come as observers spell out worries that disruptions to busy South China Seas shipping lanes could further snarl global shipping.

MORNING MUST READ- One of the world’s top AI researchers thinks “AI is as dumb as acat” — that current models are “far from rivaling the intelligence of our pets, let alone us.” Christopher Mims’ sit-down with the Meta researcher offers a broad and reasonably balanced view on the state of the art (and hysteria) about artificial intelligence.

SIGN OF THE TIMES- Global accounting giant EY is blaming a slump in private equity and M&A activity for its decision to delay “start dates for new graduates hired for its elite strategy adviser Parthenon” in the United States.

HAPPENING THIS WEEK internationally:

  • International Monetary Fund boss Kristalina Georgieva will speak this coming Thursday on the global economy and her organization’s priorities ahead of next week’s World Bank and IMF General Meetings, which formally get underway a week from today.
  • Interest rate watchers will keep a close eye on consumer inflation data from India (today), Canada (tomorrow), the UK (Wednesday), and Japan (Friday);
  • Turkey’s central bank will meet on Thursday to set interest rates. Thailand, the Philippines, and Indonesia do the same on Wednesday.
  • Earnings season continues, with major institutions set to report this week including Ashmore, Bank of America, Citi, Goldman Sachs, Morgan Stanley, Blackstone, Netflix, and Schlumberger.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We look at where Egyptian universities stand in the 2024 higher education rankings.

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Somabay, every reason to fall in love.

2

POLL

Egypt’s central bank expected to keep interest rates unchanged when it meets on Thursday

Analysts see the central bank leaving rates unchanged during Thursday meeting: The Central Bank of Egypt is once again expected to leave interest rates unchanged when it meets on Thursday, as inflationary pressures continue to grow in tandem with rising geopolitical tension in the region, according to our interest rate poll. All 11 of the analysts and economists we surveyed see the Monetary Policy Committee (MPC) holding rates steady.

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

Where rates currently stand: The overnight deposit rate stands at 27.25%, the overnight lending rate at 28.25%, and the main operation and disc. rates at 27.75%. Rates have remained unchanged since the committee delivered a 600 bps rate hike following a surprise monetary policy meeting in March in conjunction with the float of the EGP and a larger loan package from the IMF being approved soon after.

Rates have been stable since then: The central bank hasn’t touched rates since its March rate hike — leaving them as is when it met in May, July, and most recently in September.

Targeting inflation continues to be the priority for the CBE: “The CBE’s primary objective continues to be stabilizing inflation and managing market expectations. While the backdrop of global monetary easing presents an opportunity for potential rate reductions, the CBE is likely to prioritize controlling inflation over any monetary policy easing in response to other economic indicators,” economic analyst Dina El Wakkad said in a note.

Recent inflation data has only added to calls to keep rates where they are: Annual headline urban inflation ticked up for a second straight month, rising 0.2 percentage points from the month before to 26.4% in September, driven by an uptick in electricity, gas, and other fuel prices. This pushed inflation further away from the central bank’s average inflation target of 7% (±2%) by 4Q 2024 and 5% (±2%) in 4Q 2026.

And it looks like these inflationary pressures are here to stay for a while: Increasing fuel prices and the lack of a favorable base effect coupled with the seasonal rise in educational expenses are all factors that could cause inflation to persist during 4Q 2024, Al Ahly Pharos analyst Esraa Ahmed said. IBIS Consultancy economist Ali Metwally agrees, telling us that “the impact of fiscal adjustments, including rising electricity, fuel, medicine, and education prices, will extend into November and December.”

There’s a geopolitical angle: El Wakkad pointed to ongoing geopolitical tensions and regional escalation as another potential factor that could keep inflationary pressures high, as the tensions could potentially affect Brent crude and wheat prices — causing inflation to remain “stubbornly high in the fourth quarter of 2024,” she said.

Analysts pencil in their inflation predictions: Analysts see inflation accelerating for a third straight month in October on the back of continuing price hikes, as well as additional seasonal drivers. HC Brokerage’s Equity Research Head Nemat Choucri expects headline inflation to accelerate 1.0% m-o-m to 26.5% y-o-y in October due to “the electricity price increases to the household, retail, and industrial sectors in September and potentially higher energy prices in October,” she said. Economist Mona Bedair sees inflation ranging between 26.8-27% in October and November, before slowing to 23% by December.

Business activity continues to falter in the meantime: While the record high rates have been a key means of keeping inflationary pressures in check for the CBE, the tightening cycle has come at the expense of GDP growth and Egypt’s business activity, which “remains subdued due to the high interest rate environment impacting private sector investments,” Choucri said. “To overcome this, the government has been announcing investment incentives and tax facilities to encourage private local and foreign investments to drive GDP growth,” she continued.

A decision to hold will have different effects depending on the sector: Continued high interest rates are likely to discourage investment in sectors that rely on borrowing — such as the real estate sector — which could, in turn, slow growth in the sector and reduce demand for raw materials, construction supplies, and other production inputs, economist Hany Abou El Fotouh told us. “On the other hand, the banking sector may benefit from higher interest rates due to increased profit margins on loans, while attracting foreign investments into Egyptian debt instruments, which could stabilize the exchange rate,” he continued.

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3

FINANCIAL SERVICES

Egypt temporarily suspends issuing new microfinance, consumer finance licenses

It could be a while before we see any new consumer finance or microfinance firms enter the market: The Financial Regulatory Authority (FRA) has suspended issuing new licenses for companies seeking to operate in consumer finance or microfinance for one year, according to a statement. The decision — which took effect on 11 October — applies to traditional financing methods but excludes fintech-based services.

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

The why: The move comes in response to a notable increase in licenses granted over the past two years — the authority handed out 10 microfinance and 15 consumer finance licenses over the past two years — raising concerns about the financial solvency of existing service providers. The decision aims to ensure that markets and non-banking financial institutions remain stable.

DATA POINT- There are currently 25 licensed microfinance firms and 30 licensed consumer finance firms in the country, serving some 3.8 mn and 1.9 mn individuals, respectively.

The fine print: The decision doesn’t apply to companies that already received the preliminary greenlight to start operating in the consumer finance or microfinance spheres. The year-long suspension is subject for renewal as the authority sees fit.

More efforts to strengthen the NBFI sector: The authority will soon start reviewing NBFIs’ compliance with the minimum capital requirements. The regulator will also hold discussions with NBFIs in the coming days, prior to implementing Basel III financial solvency standards.

Remember: The authority increased the minimum capital requirement for NBFIs to EGP 75 mn from EGP 50 mn in 2023 and gave firms a year to comply. The new capital was introduced to ensure non-banking financial services firms have a buffer against external financial shocks and mitigate risk in the sector.

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4

DEBT WATCH

EFG Finance’s Bedaya issues EGP 1.4 bn in securitized bonds

Bedaya hits the securitization market again: EFG Holding’ NBFI arm EFG Finance’s Bedaya Mortgage Finance has issued EGP 1.4 bn in securitized bonds, according to a statement (pdf). The issuance is Bedaya’s fourth and is the second in a wider EGP 3 bn securitization program.

(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 four-tranche bond, with tenors ranging from 13 months to 81 months, received credit ratings from A- to AA from the Middle East Rating Service (MERIS). The issuance is backed by a receivables portfolio from GB Capital’s Capital for Securitization as the issuance’s special purpose vehicle.

Who bought in? The Arab Banking Corporation and Société Arabe Internationale de Banque subscribed to the issuance. EFG Hermes acted as underwriter alongside the National Bank of Egypt and Al Baraka Bank.

Advisors: EFG Hermes was the sole financial advisor, transaction manager, bookrunner, and arranger for the issuance. The Abu Dhabi Commercial Bank Egypt was custodian bank, legal advice was provided by Barakat, Maher & Partners in collaboration with Clyde & Co, and Sherif Mansour Dabus–Russell Bedford was auditor.

DATA POINT- The transaction brings the total value of securitized bonds issued in Egypt so far this year to EGP 21.2 bn — 62.7% less than the amount raised in the same period last year — according to data tracked by Enterprise.

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5

Moves

Telecom Egypt appoints new VP for financial affairs

WE welcomes a new VP for financial affairs: Telecom Egypt (WE) has appointed Wael Hanafy as the company’s new vice president for financial affairs, the company said in an EGX disclosure (pdf).

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6

LAST NIGHT’S TALK SHOWS

Train crash in Minya kills 1, injures 19

Another fatal train crash, this time in Minya: The nation’s talking heads focused last night on the deadlytrain crash that occurred in Minya yesterday — a locomotive crashed into a Cairo-bound passenger train coming from Aswan. Health Ministry spokesperson Hossam Abdel Ghaffar told Salaat El Tahrir’s Faten Abdel Maaboud (watch, runtime: 5:02) that the accident resulted in one death and 19 injuries, with the two train cars falling into the Ibrahimiya canal.

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

The aftermath: All 19 injured people were discharged from hospitals, Abdel Maaboud said (watch, runtime: 6:56), adding that those responsible for the accident were referred to the public prosecutor to check for potential drug use.

Why does this keep happening? El Hekaya’s Amr Adib expressed concern over the increasing frequency of train accidents despite bns spent on railway development (watch, runtime: 6:35). Adib said that while the reason behind the crash remains unclear, there are issues with staff competence, training, and other procedures.

ALSO- The move to cash subsidies in question: National Dialogue board member Gouda Abdel Khalek told Adib (watch, runtime: 3:26) that a key condition for transitioning from in-kind to cash subsidies is ensuring price stability in markets — something the government hasn’t been able to do. Another sticking point in the move lies in the fact that “the government doesn’t have a database that allows subsidies to reach all those who deserve them.”

Remember: Prime Minister Moustafa Madbouly last month said that he hopes to see the initial phases of the implementation of cash-based subsidies at some point during the next fiscal year. The matter has already been discussed by the National Dialogue, which is now in talks with the government over how it could be implemented, he said.

A key element: Transitioning from in-kind subsidies to cash-based government support is a keyelement of our economic reform program linked to our most recent IMF package. Enterprise sources previously told us that cash-based subsidies will range between EGP 500-1,250 and will be raised annually in line with inflation levels.

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7

ALSO ON OUR RADAR

Egypt is getting EUR 7 mn from the EU to support water sustainability, green transition.

DEVELOPMENT FINANCE-

We’re getting EUR 7 mn from the EU: Planning and International Cooperation Minister Rania Al Mashat and EU Ambassador to Cairo Christian Berger yesterday signed a EUR 7 mn comprehensive technical support package to support Egypt’s green transition— dubbed the European Green Facility initiative — according to a ministry statement. This came during the first day of Cairo Water Week, which is running under the theme “Water and Climate: Building Resilient Communities” until 17 October.

Who’s getting the funds? The money will be distributed among the ministries of irrigation, agriculture, and housing to support water sustainability and the country’s green transition.

ENERGY-

A new, more ambitious gas production target: Egypt is looking to boost its natural gas production by 30% to 6 bn cubic feet of gas per day by the end of 2025, Asharq Business reports, citing an unnamed government official. The government is planning to offer new gas fields ahead of schedule in order to reach its new target, the source said.

Remember: Oil players have been ramping up their activity in Egypt after the government started clearing its arrears to foreign oil and gas companies operating in the country and the recently-introduced incentive package for oil and gas players helped sweeten the pot even further.

LOGISTICS-

Egypt, KSA to work together on maritime transport: The Transport Ministry and Saudi Arabia’s Transport General Authority inked an MoU on the sidelines of the Global Logistics Forum to bolster cooperation in maritime connectivity, according to a statement shared by the authority. The MoU aims to develop and advance maritime and shipping activities between the two sides and “promote the use of technologies and electronic platforms to enhance maritime tourism and marinas.”

ICYMI: Yacht owners just got access to a raft of new incentives as the government works to attract more yacht tourism.

DEBT-

Kredit secures EGP 100 mn to on-lend to SMEs: GB Corp’s SME lender Kredit has secured EGP 100 mn from Banque du Caire to on-lend to SMEs, according to a press release (pdf). The funds are expected to help SMEs expand and increase their production capacity, ultimately adding job opportunities and helping improve living standards.

FINTECH-

#1- Support for retailers: Fintech giant Fawry and dairy products producer, and the company behind Kiri, Bel Egypt inked a EGP 60 mn strategic cooperation agreement to provide digital financing solutions for retailers under Bel Egypt’s loyalty program Enaya, according to a joint press release (pdf). The program aims to provide individual financing of EGP 5k-150k to up to 25k retailers across Egypt over the coming five years to enable them “to overcome current economic challenges and expand their businesses,” according to the statement.

The who’s who: Bel Egypt is funding the project, while Fawry will offer retailers solutions that facilitate their access to financing.

#2- Fintech solutions incoming: Local IT solutions provider TechLine and Raya Holding subsidiary Raya Data Center will offer solutions for the local and regional fintech sector under a newly-inked strategic partnership agreement, Al Mal reports. The two sides will provide cybersecurity services, integrated data center solutions, and cloud computing for fintech firms.

STARTUPS-

WellPal lands new strategic investment: Health-focused e-commerce platform WellPal secured an undisclosed investment from a strategic angel investor to support its growth and expansion into the Saudi market, according to a statement (pdf). The Flat6Labs portfolio company has officially moved its operations from Egypt to Saudi Arabia, the statement notes.

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8

PLANET FINANCE

Middle East PE and VC investments surge in 3Q 2024

Middle East private equity and venture capital investments hit USD 2.3 bn in 3Q 2024 surpassing the previous quarter’s USD 2.2 bn, according to S&P Global Market Intelligence data. The third-quarter figure is also nearly double the USD 1.2 bn in PE and VC investments across the region in 1Q 2024. However, 2024 is expected to fall short of last year’s USD 11.6 bn, due to ongoing regional conflicts, S&P said.

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

Where the money has been flowing: Israel led the region with 150 transactions, followed by the UAE (70), and Saudi Arabia (47).

The UAE locked in two of the largest agreements this year: Lunate and Olayan Financing’s USD 735 mn acquisition of a 49% stake in ICD Brookfield Place. Additionally, Silver Rock Group invested USD 325 mn in UAE-based generative AI firm Pathfinder Global.

Also on the list of the top 10 investments of the year: Apollo Global Management’s USD 600 mn investment in Vale Oman Distribution Center (Oman); Gulf Islamic Investment’s USD 160 mn investment in Abeer Medical (Saudi Arabia); MNT-Halan’s USD 157.5 mn funding round (Egypt); and e-commerce app Salla’s USD 130 mn pre-IPO round (Saudi Arabia).

The standout sectors: Technology, media, and telecommunications led with USD 2.2 bn in investments across 124 agreements, followed by real estate (USD 752 mn) and industrial sectors (USD 741 mn).

Renewable energy investments have particularly slowed as regional instability and challenges in green hydrogen and carbon capture projects deter investors. “[The] future of hydrogen is limited by time and cost because its main application is in hard-to-abate industries like aviation, shipping and manufacturing of steel and cement,” Ian Palmer, an oilfield engineer and partner at Higgs-Palmer Technologies, wrote in an email to Market Intelligence.

MARKETS THIS MORNING-

Asian markets are mixed this morning as investors digest a weekend briefing from China’s finance ministry at which officials said they would “significantly increase” government debt issuances. Finance Minister Lan Foan was light on details that investors hoped would make it easier to quantify how Beijing planned to bolster its growth outlook.

Futures suggest US equities may come under a bit of selling pressure at the opening bell, as will the FTSE 100 and Euro Stoxx 50. The big catalyst for share movement this week: Sentiment attendant to earnings season…

EGX30

29,954

-2.6% (YTD: +20.3%)

USD (CBE)

Buy 48.50

Sell 48.64

USD (CIB)

Buy 48.50

Sell 48.60

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,069

+0.6% (YTD: +0.9%)

ADX

9,261

+0.1% (YTD: -3.3%)

DFM

4,441

+0.1% (YTD: +9.4%)

S&P 500

5,815

+0.6% (YTD: +21.9%)

FTSE 100

8,254

+0.2% (YTD: +6.7%)

Euro Stoxx 50

5,004

+0.7% (YTD: +10.7%)

Brent crude

USD 79.04

-0.5%

Natural gas (Nymex)

USD 2.63

-1.6%

Gold

USD 2,676

+1.4%

BTC

USD 62,718

-0.5% (YTD: +49.2%)

THE CLOSING BELL-

The EGX30 fell 2.6% at yesterday’s close on turnover of EGP 4.0 bn (1.1% below the 90-day average). Local investors were the sole net buyers. The index is up 20.3% YTD.

In the green: Mopco (+2.3%), ADIB (+1.5%), and Oriental Weavers (+1.4%).

In the red: Elsewedy Electric (-8.3%), Juhayna (-7.8%), and EFG Holding (-7.3%).

Tags:

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard
9

BLACKBOARD

2024 higher education rankings show Egyptian universities steadily creeping up the list

It was a mixed — but mostly positive — bag for Egyptian universities in this year’s international rankings, with both advancements and declines across the board. While some universities achieved higher standings, others faced setbacks compared to their previous ranking.

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

There are three key ranking systems globally that are considered most authoritative: The QS World University Rankings, the Times Higher Education (THE) World University Rankings, and the Academic Ranking of World Universities (ARWU), often referred to as the Shanghai Ranking.

Nine more Egyptian universities make it to THE’s list: THE 2025 rankings have expanded their representation of Egypt’s institutions to include 47 Egyptian universities, up from 38 last year. Universities that joined the ranking this year include Al Ryada University for Science and Technology, Arish University, ESLSCA University, Luxor University, Sphinx University, Deraya University, all entering as reporter universities. Reporter universities contribute data for the rankings but are not themselves ranked. Menoufia University and Damanhour University also joined the list, making it to the rank 1201-1500, while New Valley University was also added straight to the 1001-1200 rank.

THE’s ranking methodology: The Times Higher Education ranking evaluates universities using 18 performance indicators that cover five main areas: Teaching (the learning environment); Research environment (volume, income and reputation); Research quality (citation impact, research strength, research excellence and research influence); International outlook (staff, students and research); and Industry (income and patents), THE ranking methodology notes.

E-JUST remains on top in the THE rankings: The Egypt-Japan University of Science and Technology (E-JUST) retained the top spot for Egyptian institutions for the second consecutive year, being ranked in the top 501-600 universities worldwide. Aswan University, which had consistently been ranked as Egypt’s top university for several years, is now ranked among the top 1001-1200 universities worldwide, down from its 401-500 ranking for 2023. The American University in Cairo, Future University in Egypt, Kafrelsheikh University, and Mansoura University all rose to the 601-800 rank, behind E-JUST in the list.

Several institutions saw declines in their standings: Alexandria University slipped to 1001–1200 from its 800-1000 position in the previous year. Similarly, Nile University dropped to 1201-1500 from 1001–1200, while Zagazig University dropped to 1001-1200 from 801-1000 last year.

Two more local universities added and another dropped from the ShanghaiRankings rankings: ARWU’s most recent ranking — also known as the also called the ShanghaiRanking — listed eight Egyptian institutions, with the Suez Canal University and Tanta University both being added to the list and Beni Suef University being dropped. Cairo University maintained the top spot with a ranking in the world top 301-400 universities, followed by Ain Shams, Alexandria University, and Mansoura University in joint second place with a ranking of 601-700.

The methodology: The ShanghaiRanking bases its rankings on four main indicators — quality of education, quality of faculty, research output, and per capita performance. To assess these, the ranking looks at the number of alumni and staff that have received prestigious awards, the number of citations, and the university’s presence in prominent journals.

Fifteen local universities made it on to the QS Rankings once again: Cairo University once again topped the QS World University Rankings for 2025 among the fifteen universities listed this year. Cairo University creeped up the tables to rank as the top 350th university in the world, up from 371. AUC also climbed 5 spots to rank 410 in second place, marking itself as the top ranked private institution. Ain Shams jumped from ranking between 721-730 to 592nd place.

Pushing up local universities in global rankings is also an important part of the state’s education plans: The government is working towards having at least 28 Egyptian universities on the QS World University Rankings by the end El Sisi’s third term in 2030.

Your top education stories for the week:

  • The American University in Cairo launched a new cybersecurity major, which it says comes in response to a growing demand in the job market for those who can “safeguard digital infrastructure and protect data from cyberattacks.” (Statement | pdf)
  • The cabinet approved a draft presidential decree amending the executive regulations governing private and national universities, splitting the council governing the universities into two — with one governing private and one governing national universities.
  • MPs approved USD 60 mn in foreign education financing, including USD 35 mn from USAID to back higher education initiatives and EUR 25 mn from the EU to improve vocational school graduates’ skills and offer them training programs.
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CALENDAR

2024

OCTOBER

13-17 October (Sunday-Thursday): Cairo Water Week, Water and Climate: Building Resilient Communities, Cairo, Egypt.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

20-22 October (Sunday-Tuesday): Mediterranean Offshore Conference, Alexandria, Egypt.

21 October (Monday): BEBA working luncheon with Aviation Minister Sameh El Hefny, Cairo, Egypt.

21-25 October (Monday-Friday): The second iteration of the Global Forum for Population, Health, and Human Development.

22-24 October (Tuesday-Thursday: 16th Brics Summit, Kazan, Russia

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

7-9 November (Thursday-Saturday): FinExpo Conference and Exhibition, Cairo.

11-15 November (Monday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25-27 November (Monday-Wednesday): Annual Digital Nation Conference, Cairo, Egypt.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2025

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy.

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

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

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.

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