Egypt is getting EUR 1 bn from the EU within days

1

What We're Tracking Today

Misr Pharma and CID offerings are planned for 1H 2025

Good morning, friends. Welcome to the last full work week of 2024 — where did the time go? We are kicking the week off with a brisk issue, so let’s dive right in.

PSA-

WEATHER- It’s officially winter in Egypt: The winter season kicked off yesterday and will run until 20 March.

IN CAIRO- We’re in for another cold day, with a high of 20°C and a low of 13°C, according to our favorite weather app.

It’s as cold in Alexandria, with a high of 21°C and a low of 12°C.

(Some) Egyptians abroad can now open Egyptian bank accounts without visiting Egypt after the foreign ministry, in collaboration with the central bank, launched an initiative that allows Egyptians living abroad to open bank accounts locally through their respective embassies and consulates, according to a statement. The initiative has been launched in 20 countries as a first phase.

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

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

WATCH THIS SPACE-

#1- Could the Chinese CCCC jump in on Egypt’s airport privatization plans? The China Communications Construction Company (CCCC) is interested in working with the Madbouly government on its airport development plans, namely the development of Cairo International Airport, this came during a meeting between company’s deputy general manager and Civil Aviation Minister Sameh Elhefny. The government is close to appointing an international consultant to establish a framework for private sector partnerships in the aviation sector.

Remember: This comes amid growing momentum around the government’s plans to privatize airport management to improve services and boost state revenues. In recent months, the government announced that Cairo, Sphinx, El Alamein, Sharm El Sheikh, and Hurghada airports would be part of the first phase of the privatization offering.

#2- More information on the planned Misr Pharma and CID offerings: State-owned pharma manufacturer HoldiPharma is gearing up to list stakes ranging between 25-30% in subsidiaries Chemical Industries Development (CID) and Misr Pharma on the EGX, Al Borsa reports citing unnamed sources. The offerings are set to take place in 1H 2025 with Misr Pharma expected to make its EGX debut in the first quarter of the year, followed by CID.

We heard about this before: CID and Misr Pharma are on the government’s list of 35 state-owned companies earmarked for privatization via stake sales to strategic investors, the EGX, or a mix of both. HoldiPharma reportedly tapped Al Ahly Pharos to advise on the offerings back in October.

DEBT-

The average yield on six-month t-bills jumped to a fresh high of 31.21% during the central bank’s latest EGP t-bills auction on Thursday, according to central bank data. The central bank auctioned off EGP 30.7 bn worth of t-bills with a six-month tenor — investors put in offers amounting to EGP 133 bn at an average yield of 31.43%.

CIRCLE YOUR CALENDAR-

German investors to visit Egypt next year: A delegation of Bavarian business leaders will visit Egypt in January to explore green hydrogen investments, German ambassador to Egypt Jürgen Schulz told Al Arabiya. Another delegation of investors from Saxony is scheduled to visit in April with an eye on the energy and infrastructure sectors.

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

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign press this morning, among the most notable headlines:

IN OUR NECK OF THE WOODS- Syria’s Kurdish factions are under increasing pressure as the balance of power in the country shifts against them, following Bashar Al Assad’s ouster earlier this month. The power shift has raised the prospect of deeper Turkish influence in northern Syria, with the Turkey-backed groups now representing a renewed threat to the Kurdish-led Syrian Democratic Forces (SDF). (Reuters)

OVER IN THE WEST- The Magdeburg attack is still making headlines: A car-ramming attack at a Magdeburg Christmas market has reignited political tensions in Germany. Five people were killed, and more than 200 were injured after a Saudi man, reportedly with far-right sympathies, drove through the market on Friday. The incident has sparked a debate over the role of immigration and far-right extremism in the country. (Reuters | The Guardian | BBC | France 24)

Egypt condemned the attack and expressed solidarity with Germany, calling for global efforts to combat all forms of violence and terrorism, in a Foreign Ministry statement.

IN THE US- Congress narrowly avoided a government shutdown after passing a stop-gap funding measure early Saturday morning. The bill — which extends federal funding through 14 March and includes aid for disaster relief and farmers but excludes debt ceiling provision — was passed after days of chaos in Washington. (Financial Times | New York Times | CNN | Washington Post)

EU approves the disbursement of EUR 1 bn to Egypt

Egypt is receiving EUR 1 bn from the EU: The European Union approved the disbursement of an EUR 1 bn macro-financial assistance package on Friday to “accompany (Egypt’s) reform agenda,” European Commission President Ursula von der Leyen wrote on X. The package marks the first phase of a EUR 5 bn set of concessional loans running through 2027, which comes as part of a wider EUR 7.4 bn package from the EU announced in March.

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

The funds will go towards alleviating external financing constraints, easing the government’s balance of payments and budget needs, and boosting FX reserves against the backdrop of regional geopolitical tensions. The package got the thumbs up from the cabinet in August and was initially agreed upon back in June.

When can we expect the funds to land in state coffers? “This disbursement, which corresponds to the first and only instalment, will take place in the coming days,” the EU Commission said in a statement on Friday.

The details of the next tranche are already being discussed: The package’s second tranche — which is set to come in at around EUR 4 bn — is “currently under discussion with co-legislators,” according to the statement. The remaining EUR 4 bn is set to be disbursed between 2025 and 2027, according to a previous statement from the International Cooperation Ministry.

Geopolitics played a role in the EU’s decision to grant us the funds: The commission pointed to the economic challenges Egypt is facing due to the ongoing situation between Russia and Ukraine and Israel’s war on Gaza. Egypt represents a “key pillar of stability and a strategic partner of the EU,” the statement reads.

The EU is pleased with Egypt’s progress on the business front: “Progress has been made in the business and investment environment, through increased transparency on investment and import conditions, and strengthening the role of the competition authority,” the statement reads.

Egypt’s El Sisi meets world leaders on the sidelines of D-8 Summit

Egypt hosted the D-8 Organization for Economic Cooperation Summit on Thursday, bringing together leaders from member nations to discuss a number of topics, most notably the “ongoing brutal aggression by Israel in Gaza and the humanitarian crises in Palestine, Lebanon, and Syria,” according to a statement. A number of key figures touched down in Cairo to attend the summit, including Iranian President Masoud Pezeshkian and Turkish President Recep Tayyip Erdogan. President Abdel Fattah El Sisi held one-on-one meetings with world leaders on the sidelines of the summit.

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

Remember: Egypt took over the rotating presidency of the D-8 cooperation and is heading the group until the end of 2025. During its time as president, Egypt aims to set up several networks, including those of economic research centers and diplomatic training centers.

#1- El Sisi met with Iranian President Masoud Pezeshkian — who was in town for his very first visit to Egypt, marking the first visit by the Iranian president since 2013. The two sides discussed efforts to develop relations and regional developments, focusing on de-escalation to maintain stability in the region.

#2- Erdogan also spoke with El Sisi in a meeting that saw the two sides touch on “strengthening bilateral cooperation across all fields, in alignment with the interests of both countries and their peoples … particularly in the areas of economics, trade, and investment.” They also discussed Gaza, Syria, Libya, Sudan, and Somalia, reiterating their security and sovereignty.

#3- El Sisi discussed the situation in Gaza with Palestinian President Mahmoud Abbas, highlighting the need for a ceasefire in the area and the immediate delivery of humanitarian aid. The two leaders rejected attempts to displace Palestinians and condemned ongoing violations in the West Bank.

#4- He held a meeting with Lebanon’s Prime Minister Najib Mikati, where he called for the need to support Lebanon’s armed forces to enhance stability. El Sisi “reiterated Egypt's steadfast commitment to offering all forms of assistance to alleviate the suffering of the Lebanese people and support the effective functioning of the country's institutions.”

#5- El Sisi met with the head of Bangladesh’s interim government Muhammad Yunus on the sidelines of the summit. The meeting focused on efforts to enhance economic, investment and cultural cooperation between the two sides.

US approves USD 5 bn arms sale to Egypt

The US greenlit a USD 5 bn arms sale to Egypt: The US State Department on Friday approved a USD 4.7 bn foreign military sale to Egypt of “Abrams Tank Refurbishment, Support, and Equipment, and related equipment,” according to a statement from the Defense Security Cooperation Agency. The sale will “support the foreign policy and national security of the United States by helping to improve the security of a Major Non-NATO Ally country that continues to be an important strategic partner in the Middle East.”

AFP picked up the story.

Cheiron is looking into expanding Egypt operations

ENERGY-

#1- Cheiron wants to expand operations in Egypt: Local energy giant Cheiron Energy is looking to expand its energy portfolio in Egypt, targeting new concessions and ramping up exploration to boost production, CEO Alan Linn said during a meeting with Oil Minister Karim Badawi.

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

Remember: Cheiron recently secured a USD 80 mn loan to fuel exploration operations, as part of its efforts to increase production by 20% in 2025.

#2- Could KSA’s Alqahtani Holding step into Egypt’s energy sector? Saudi Arabia's Alqahtani Holding is in talks with the Oil Ministry to explore joint investments in petroleum, gas, and petrochemical projects, according to a ministry statement. The group is working with Shard Capital and the Egyptian Petrochemicals Holding Company to set up a petrochemical complex in the New Alamein Industrial Zone.

#3- The General Petroleum Company (GPC) has resumed production of its GYP field, following years of inactivity, according to a statement from the Oil Ministry. The field is expected to produce some 1.5 mn barrels of oil in the coming three years.

MANUFACTURING-

Unionaire Group Technology is developing an industrial complex dedicated to manufacturing home appliances exclusively for export, Vice Chairman Youssef Fathi said during a presser, according to Al Borsa.The facility will bolster the group’s efforts to expand its presence in Europe, starting with the UK, where it plans to establish a dedicated marketing and export subsidiary. The tech company will also diversify its product portfolio — expanding beyond air conditioners to include stoves, refrigerators, and washing machines soon.

Also on the agenda: The company plans to partner up with Italian cooking appliance manufacturer Premium Company to become its main agent in Egypt and produce its products locally.

EXPANSION-

Korra Energi eyes regional expansion: Energy solutions firm Korra Energi has begun the procedures to expand into the Saudi and Iraqi markets, chairman Ayman Korra told Asharq Business. The firm is looking into potential investments in Oman, he added.

ALSO FROM KORRA- Korra inked a strategic partnership with Solariz Egypt for USD 50 mn joint solar energy projects, according to a press statement (pdf). The projects will have a total capacity of 100 MW and will serve the tourism and the industrial sectors, particularly energy-intensive industries targeting exports to Europe, such as fertilizers, petrochemicals, and building materials.

PAYMENTS-

#1- Google Wallet is coming to Egypt next month, according to Google’s wallet release notes. The service is launching in Pakistan and Venezuela at the same time. The wallet offers a number of features, most notably the payments feature which functions similarly to how Apple Pay does, allowing users to use their phones to make payments. The wallet allows users to integrate loyalty cards, metro cards, entertainment tickets, and more into their online wallet. The launch of Google Wallet in Egypt will come shortly after Apple burst onto the local scene.

#2- Merchants within Paymob’s network can now accept Apple Pay, the local fintech startup said in a statement. Users can now make online and in-store payments through Apple Pay.

HOSPITALITY-

Egyptian-Emirati alliance to revive tourism project in Morocco: A coalition led by Egyptian bn’aire Samih Sawiris, tourism investor Hossam El Shaer, and Emirati investor and Al Nowais Investments and AMEA Power Chairman Hussain Al Nowais took over the Mogador tourism station in Morocco, Asharq Business reports. The project was initially launched in 2004 but was never completed.

The timeline: The investors intend to invest an initial USD 500 mn, Sawiris told Asharq, adding that if the project proves successful it could end up having a final investment ticket of USD 1.5 bn.

ALSO FROM SAMIH SAWIRIS- Orascom Development Holding (ODH) decided to delist from the SIX Swiss Exchange because it is not fairly valued in the Swiss market, Sawiris told Asharq Business. The delisting will grant the company more flexibility and save the hefty cost that comes with listing on the Swiss Exchange.

TOURISM-

Wait, so we’re not renting the pyramids to Mr. Beast? Mega YouTuber Mr. Beast misspoke when he said that he is renting the Giza Pyramids for 100 hours — the Tourism Ministry denied the news, explaining that the YouTuber only secured a license to film at the Giza Pyramids outside official working hours.Jimmy (aka. Mr. Beast) has already completed filming for his project without disturbing the area.

BUSINESS-

IWG wants to set up more workspaces locally: Swiss provider of coworking, office, and meeting spaces IWG plans to establish 25 new locations in Egypt next year, in line with a target of 150 by 2030, according to a press release. Alexandria, the new capital, and undisclosed cities along the Red Sea are all on IWG’s 2025 list.

What they said: “Cairo has emerged as a prime community for flexible workspace solutions. We recognize the unique seasonal work patterns in Egypt and are planning our expansion accordingly,” said CEO for the Middle East & Africa at IWG Marc Descrozaille.

BoJ and BoE keep rates unchanged as central banks strike cautious tone on inflation

The Bank of England and the Bank of Japan kept their interest rates unchanged on Thursday, capping off a year of easing with a cautious stance for 2025. Despite the US Federal Reserve and the European Central Bank’s (ECB) recent rate cuts, central bankers are signalling that inflation continues to prove stickier than expected, pointing to potentially slower easing cycles next year, and triggering sell-offs across stock markets.

THE BANK OF ENGLAND-

The Bank of England (BoE) kept its interest rate unchanged at 4.75% as it looks to “squeeze” remaining inflationary pressures and reach the 2% target, according to a BoE statement. Inflation in the UK hit an eight-month high in November, according to AP. “With the heightened uncertainty in the economy, we can't commit to when or by how much we will cut rates in the coming year,” Reuters quotes BoE governor Andrew Bailey as saying, striking a cautious tone. The BoE decision was followed by a 1.1% drop in the FTSE 100 index.

BANK OF JAPAN-

Japan also wants to weigh upcoming risks: The Bank of Japan (BOJ) kept interest rates steady at 0.25% as it bides its time on risks overseas and the wage outlook next year, according to statements from BoJ governor Kazuo Ueda picked up by Reuters. “Underlying inflation is heightening but at a moderate pace. That is allowing us to go slow in raising rates,” Ueda said.

PEOPLE’S BANK OF CHINA-

The People’s Bank of China (PBOC) kept its main benchmark lending rates unchanged on Friday, in line with economists’ expectations, CNBC reports. China's leadership indicated a shift towards more aggressive economic support in 2025, which is expected to include interest rate cuts and a widening of the 3% fiscal deficit.

EGX30	30,527	+0.1% (YTD: +22.6%)
USD (CBE)	Buy 50.85	Sell 50.99
USD (CIB)	Buy 50.86	Sell 50.96
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,892	-0.6% (YTD: -0.6%)
ADX	9,351	+0.8% (YTD: -2.4%)
DFM	5,057	+0.2% (YTD: +24.6%)
S&P 500	5,931	+1.1% (YTD: +24.3%)
FTSE 100	8,085	-0.3% (YTD: +4.5%)
Euro Stoxx 50	4,862	-0.3% (YTD: +7.5%)
Brent crude	USD 72.94	+0.1%
Natural gas (Nymex)	USD 3.75	+4.6%
Gold	USD 2,645	+1.4%
BTC	USD 96,927	+0.3% (YTD: +128.6%)

THE CLOSING BELL-

The EGX30 rose 0.1% at Thursday’s close on turnover of EGP 3.79 bn (9.1% below the 90-day average). Local investors were the sole net sellers. The index is up 22.63% YTD.

In the green: Edita Food Industries (+3.7%), Abu Kir Fertilizers (+3.1%) and Emaar Misr (+2.4%).

In the red: El Sewedy Electric (-2.3%), E-finance (-2.1%) and Telecom Egypt (-1.8%).

CALENDAR

2024

DECEMBER

22 December (Sunday): The Nahda University Economic Forum’s third edition is set to take place

22 December (Sunday): Waha Connect 2024, New Assiut Technology Park, Egypt

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

EVENTS WITH NO SET DATE

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

2025

January: CBE to launch InstaPay remittances for Egyptians abroad

February: Orascom Pyramids Entertainment to bring total investments in the Pyramids Plateau to EGP 1.5 bn

1 January (Wednesday): The minimum pension will increase to EGP 1.5k, and the maximum to EGP 11.6k

1 January (Wednesday): Launch of the urgent plan for the National Population and Development Strategy.

14 January (Tuesday): The 4th edition of the Egypt Economic Summit will take place.

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.

January 2025: Bavarian Delegation visit to 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

7-10 April 2025 (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

April 2025: Saxony Delegation visit to Egypt

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

May 2025: French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6.

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

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1H 2025: The Egyptian-US Investment Forum.

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

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

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

Sections

About

Privacy & Support

Get EnterpriseAM daily