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Egypt moves to offer up 62 hospital investment projects to private sector in healthcare overhaul

1

WHAT WE’RE TRACKING TODAY

Strong first-day uptake for Citizen Bond

Good morning, all. Today, we’re looking at a major shift in how the state handles healthcare, with the government moving to offer 62 hospital investment projects to the private sector. Also catching our attention, the Citizen Bond is already seeing strong first-day uptake — especially in the governorates.

For the sun-seekers, rooftop solar just got a lot more complicated with stricter local content rules and grid requirements that effectively end net-metering as we know it. The Parliament is also fine-tuning nuclear laws to make sure hospitals and universities don’t get hit by the same fee hikes as commercial ventures.

So, when do we eat? Maghrib prayers are at 5:50pm in the capital, and you’ll have until 5:00am tomorrow to hydrate and caffeinate ahead of fajr.

***

WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.***

Watch this space

DEBT — Retail demand for the newly issued Citizen Bond gathered pace on the first day of the offering, with particularly strong uptake recorded in the governorates, a senior government official tells EnterpriseAM, adding that bonds will remain available until 8 March. Sales figures from post offices nationwide are still being tallied, but early indicators suggest broad participation beyond Cairo.

To enhance the appeal of the issuance, the Finance Ministry will shoulder the 20% tax normally due on the bond, offering citizens a no-tax yield of 17.75%, the official tells us. Coupon payments will be credited directly to investors’ accounts on a net basis. The bonds also carry a fixed return for the entire tenor, regardless of any future policy decisions by the Central Bank of Egypt, giving investors certainty over their returns from the outset.

Under the issuance terms reviewed by EnterpriseAM, investors are entitled to redeem their holdings starting from the fifth month, with accrued return from issuance to the redemption date deducted. Redemptions between the seventh and 12th months will see 40% of total paid returns deducted. From the 13th month until maturity, the deduction falls to 25% of the return.


ENERGY — Net-metering as we knew it is over, as Egyptera has tightened the screws on rooftop solar, according to a circular (pdf) from the regulator. The new rules lock in who can connect, how much they can inject, and under what technical and administrative conditions.

The rules introduce a minimum 25% local component requirement, mandate certified inverters and automatic disconnection during grid outages, and put distribution companies in charge of approvals, metering, and monthly settlement. Excess power can still be credited forward — but not cashedout. Every project must be registered, mapped, and tracked through the regulator’s PV-hub platform.

IN CONTEXT- Early last year, Egyptera froze approvals for new solar grid connections pending revised net-metering and self-consumption rules, then moved to scrap the net-metering scheme altogether at the end of the year by canceling the governing circulars. Solar firms then warned that the abrupt shift stranded investments. Regulators earlier this year paused the overhaul and said the framework would be reworked.

DIGITIZATION — Speeding things up: Corporate capital increases should happen much faster now that Investment Minister Mohamed Farid is working to digitally link a handful of state entities, giving them digital access to each other’s certified documents. The move digitizes and speeds up the process that usually accompanies capital increases, board restructuring, and ratifying meeting minutes.

Who’s involved? The first phase of the process will see the Investment Ministry digitally link up with the EGX, Misr for Central Clearing, Depository and Registry, the Financial Regulatory Authority, the Internal Trade Development Authority, and the CIT Ministry.

From the diplomatic front

The Foreign Ministry condemned US ambassador to Israel Mike Huckabee’s comments about Israel’s entitlement to lands belonging to Arab states, which he made on the Tucker Carlson Show podcast (watch, runtime: 2:42:39), the ministry said in a statement. Egypt sees his comments as “a flagrant violation of international law and the principles of the United Nations Charter,” highlighting that they contradict US President Donald Trump’s 20-point “peace plan” to end the genocide of the Palestinian people in Gaza, as well as the Peace Council conference held in Washington this month.

“Egypt reiterates that Israel has no sovereignty over the occupied Palestinian territories or other Arab lands,” the ministry said. It added that it rejects any annexations of the West Bank or its separation from the Gaza Strip, as well as any expansion of settlement activities on the occupied Palestinian territories.

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** DID YOU KNOW that we cover Saudi Arabia, the UAE, and the MENA-IndiaCorridor?



Data point

81st — that’s where the Egyptian passport ranked in this year’s HenleyPassport Index, improving nine spots from last year. Singapore topped the list, while the UAE ranked as the most powerful Arab passport and came in joint third place globally with Sweden. Our corner of the world was overrepresented at the bottom of the ranking with Iraq, Syria, and Yemen, trailing only Afghanistan.

PSA-

WEATHER- It’s another cool day in Cairo today, with a high of 19°C and a low of 11°C, according to our favorite weather app.

It’s a similar story in Alexandria, with a high of 18°C and a low of 10°C.

The big story abroad

Several stories dominate headlines this morning, including the killing of drug cartel kingpin Nemesio Oseguera after a raid by Mexican authorities. Oseguera was a top member of the organization known as Jalisco New Generation Cartel, which is one of the groups behind the smuggling of bns of USD worth of drugs into the US. The operation came after mounting pressure from Washington to prevent the flow of drugs across the border.

On the global stage, the European Commission said it expects Washington to stick to the joint trade agreement inked last year. The Commission demanded “full clarity” on Washington’s next steps and insisted the US honor the agreement, indicating that it will accept no increase in US tariffs. This comes after US President Donald Trump announced he is raising global tariffs to 15%.

Speaking of which, Trump’s newest tariff hike was found to benefit China and Brazil most while heralding higher costs for US allies, namely the UK, the EU, and Japan. US allies are thought to suffer most as their exports have a higher proportion of steel, aluminium, and autos, which are covered by some tariffs that remain in place.

MEANWHILE, IN MARKETS: Crude prices retreated in early trading today after Trump’s pledge to hike tariffs fueled anxieties over a potential slowdown in global economic growth and energy demand.

*** 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 how the government’s proposed plan to extend compulsory schooling from 12 to 13 years will need to see private sector investment increase to meet the greater number of students.

Wishing you peace, joy, and endless blessings. Ramadan Kareem from Somabay.

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The Big Story Today

Egypt to tap private sector for 62 hospital investment projects

The government is moving to offload the management, operation, and service efficiency upgrades of 62 healthcare projects to the private sector, as it seeks to shift from state-led construction to private-led operation, a senior government official tells EnterpriseAM. The Health Ministry, in tandem with the Sovereign Fund of Egypt, has expanded its pipeline of private-participation prospects from just seven last year to 62 today.

The list includes Sheikh Zayed Specialized Hospital, New Alamein Hospital, and Galala Hospital, which is being repositioned as a medical tourism resort, the official tells us. The Agouza Hospital overlooking the Nile is also on the list, alongside a wide range of projects across multiple governorates.

Why it matters: The push comes as the FY 2025-26 healthcare budget is slated to reach EGP 617.9 bn, a 124.3% jump from four years ago, when the budget was EGP 275.5 bn in FY 2021-22. While the budget allocation looks sizable, debt servicing now consumes a significant portion of public spending. By inviting private operators to take over flagship assets through usufruct or management contracts, the government hopes to improve public healthcare services without adding more debt to the balance sheet.

The upcoming incentive package will be structured around a graduated model. Projects will qualify for higher levels of support based on the size of their USD-denominated financing, operational scale, ownership structure — whether usufruct or sale mechanisms — and job creation potential, the official tells us. The government is also expanding the use of the golden license to fast-track approvals for qualifying investments.

The incentives mix will combine time-bound tax and customs exemptions with land allocation in underserved areas through usufruct arrangements or public-private partnerships. Additional benefits will target projects that boost utilization rates at existing facilities or shorten the time needed to become operational.

Technology and sustainability will play a decisive role. Investors that localize advanced medical technologies or expand into underserved areas will gain preferential access to higher incentive tiers. Projects powered by clean energy and those geared toward medical tourism will also be prioritized, the source added.

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Banking

HSBC says it’s committed to commercial, investment banking amid reports it’s inching closer to exiting retail franchise

HSBC Egypt remains committed to Egypt for the long term even as it deliberates the fate of its retail business here, HSBC Middle East CEO Selim Kervanci and HSBC Egypt CEO Todd Wilcox told EnterpriseAM in an extended interview in Cairo earlier this month.

“HSBC is very committed to Egypt as a strategic market in which we are squarely focused on the needs of our corporate and investment banking clients,” Wilcox said. “We conveyed that message to the finance minister and the central bank governor when we met [in mid-February 2026].”

Connecting Egypt to global prospects — and vice versa — is good business for HSBC, Wilcox said, noting that the bank regularly organizes roadshows and reverse roadshows that put Egypt on the map with global clients and investors from China, Singapore, the UK, and beyond. Multinationals appreciate that reach too: “I was recently in Switzerland for meetings, and a very large Swiss multinational that we bank in multiple jurisdictions made clear that one reason it stays with HSBC globally despite being courted by many other institutions is that they can bank with us here in Egypt — Egypt is a key market for them.”

HSBC put its retail business here in Egypt in strategic review last October. A report in thedomestic press late on Saturday suggested that institutions including our friends at CIB and Emirates NBD, as well as QNB Al Ahli and at least one other institution, have begun due diligence on HSBC Egypt’s retail portfolio as a prelude to a sale.

Wilcox and Kervanci declined to speculate this earlier month on whether — or when — the bank would push ahead with a sale of its retail accounts here.

Why would HSBC sell its retail bank in Egypt, but continue to court commercial and investment banking clients? HSBC Group is positioning the review of its retail operations in Egypt as part of its “ongoing simplification globally.” It has been pulling back from retail around the world, opting to focus in most markets on corporate and institutional banking as well as its private banking or “wealth” business. That process got underway in mid-2023, when then-CFO Georges Elhedery put 12 countries on an “ exit watchlist ” — and accelerated after Elhedery became CEO of the global bank in 2024 with a strategy to streamline and drive growth in core markets, including Asia and the Middle East.

A big part of that drive is to focus on “internationally minded clients,” Wilcox said, pointing to the influx of Chinese and Turkish manufacturers attracted by “Egypt’s clear competitive advantages.” HSBC Egypt bankers report that appetite has been even stronger so far this year than in 2025.

HSBC Middle East Holdings Chairman Samir Assaf was also in Cairo earlier this month for a meeting of the bank’s Middle East board. After meeting with the teams at the Finance Ministry and CBE, he noted, “We remain committed to Egypt as a strategic market as we continue to invest in our people and strengthen our capabilities to support our customers as they navigate a dynamic global environment.”

HSBC by the numbers: The bank opened here in 1982 as the Hong Kong Egypt Bank and today has 4.2k staff (between the bank and its global service center) and 53 branches. In addition to the retail, corporate, and investment banking footprints, Egypt is also home to an HSBC global service center that provides support to the bank’s global operations.

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LEGISLATION WATCH

Parliament fine-tunes nuclear law to protect hospitals and universities

The Parliament is moving to exempt healthcare facilities, universities, and research centers from nuclear regulatory fee hikes, as the Energy and Environment Committee granted preliminary approval to amendments to the law regulating nuclear and radiological activities. The move comes as Egypt advances the Dabaa nuclear power plant project under the supervision of the Nuclear and Radiological Regulatory Authority, highlighting the need for a more agile and robust regulatory regime.

Key amendments include:

  • Exempting medical and academic institutions using x-ray equipment from fee increases, recognizing their non-commercial nature, and amending their classification as “radiological facility” under current law;
  • Raising licensing fees for nuclear projects, introducing a graded fee structure that reflects the scale and complexity of nuclear activities, based on facility size, type of activity, and radiation sources;
  • Expanding the Authority’s supervisory powers to ensure the safe and secure use of nuclear energy and protect people, property, and the environment from ionizing radiation risks;
  • Granting the authority administrative seizure powers to secure the collection of its dues from regulated entities.

Why it matters: The proposed amendments strike a balance between tightening oversight of high-risk nuclear activities and easing the financial burden on vital sectors, such as healthcare, education, and scientific research, while supporting large-scale nuclear investments without compromising public services.

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Startup watch

Bahrain’s Beban eyes larger stage in Egypt

Bahrain-based equity crowdfunding platform Beban Crowdfunding is preparing to launch in Egypt, CEO Karim Saleh tells EnterpriseAM. The move to establish Beban Egypt follows Foras AI — the shareholder founded by Exits CEO Mohamed Aboulnaga — increasing its stake in the company to fund the venture.

Beban? Beban is an equity crowdfunding platform that connects investors with startups and SMEs seeking funding in exchange for ownership stakes starting as low as USD 100. Unlike debt crowdfunding, “Beban connects investors with companies that want to sell equity stakes in exchange for funding,” not debt, Saleh said. What also sets Beban apart is its own Shark Tank-esque TV program to showcase the investments.

But crowdfunding can only get you so far in Bahrain with a population of just 1.7 mn. While keeping Bahrain as its regional hub, Beban is looking to tap Egypt’s 69x larger population, which represents “a far bigger market and stronger growth potential.”

Trust may be an issue for some Egyptians, as “crowdfunding in Egypt has often been associated with fraud or informal activity,” Saleh noted. To tackle this, Beban approached the FRA to develop a crowdfunding model that also “includes safeguards such as due diligence, escrow mechanisms, and tracking of funds from investment through deployment and beyond,” he added.

The company is currently applying for a license for the venture from the FRA, which will be structured around the existing securitization and underwriting framework and an investment fund. The regulator has welcomed the model but mandated additional safeguards, including an independent fund manager to oversee investments, conduct due diligence, and ensure compliance before capital is deployed.

What’s next? Beban expects to receive a preliminary license after submitting its paperwork, followed by final approval around six months later, Saleh said.

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Capital markets

Beltone Holding rolls out private equity platform

Our friends at Beltone Holding launched a private equity platform, which will provide growth-stage capital to startups from pre-seed to pre-IPO stages, according to a statement (pdf). The platform — which will complement Beltone Venture Capital — will be led by CEO and Managing Partner of Beltone Venture Capital Ali Mokhtar (LinkedIn).

Beltone describes this new platform as the next phase of its investment platform development, reflecting a “deliberate step toward strengthening its end-to-end capital offering and reinforcing its position as a long-term investment partner to ambitious founders across the region.”

ICYMI: Beltone Holding raised EGP 10.5 bn in its second capital increase last year, bringing its total paid-in capital to EGP 21.4 bn, with the capital slated to be used to fuel expansion across its platforms.

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ALSO ON OUR RADAR

TMG moves up to FTSE Russel GEIS’ mid-cap segment

Talaat Moustafa Group (TMG) advanced from the small-cap to the mid-cap segment of the FTSE Russell Global Equity Index Series (GEIS), as part of the semi-annual review for the Middle East and Africa region, the real estate player said in an EGX disclosure (pdf). The upgrade comes after TMG’s market capitalization surpassed the mid-cap minimum threshold of around USD 2.7 bn as of 31 December.

Why this matters: The reclassification of TMG to the mid-cap segment signals Egyptian caps are recovering after a recent currency devaluation squeezed margins on real estate players’ existing contracts. Large Egyptian real estate companies such as TMG are now finally heavy enough to compete for regional mid-cap indexes once again, placing them within reach of a significantly broader base of institutional investors that typically overlook small-cap stocks.

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PLANET FINANCE

When wars become a trade

Prediction markets are facing a new kind of scrutiny — and this time it’s not about sports or elections. It’s about war and diplomacy. Platforms like Polymarket have turned nearly every headline into a tradable event, with daily trading volumes topping USD 100 mn. The business is booming: the total positions taken on these platforms surpassed USD 8.3 bn in December, The Guardian reports. But as bns flow into transactions tied to geopolitical flashpoints, national security experts and lawmakers are raising concerns about what happens when global crises become financial instruments.

At the heart of the debate is the incentive structure itself. Polymarket CEO Shayne Coplan has openly praised the model, saying “it creates this financial incentive for people to go and divulge the information to the market.” Critics argue that this very feature rewards those with material, non-public information. Blockchain analyst Andrew 10 Gwei described insider trading as “a core feature of the system,” claiming it is what makes prediction markets so fast and often so accurate. This advantage concentrated wealth by granting fewer than 0.04% of accounts more than 70% of the total realized gains, accumulating USD 3.7 bn.

Broadcasting secrets: Highly accurate positions have appeared shortly before major global events, such as when one user placed tens of thousands of USD on contracts just 24 hours before 200 Israeli fighter jets bombed Iran, earning USD 128k in the process. Former White House ethics lawyer Richard Painter warned that such dynamics could have serious consequences on US national security. “If you know we’re going to bomb Iran in the next week and you start placing [wagers], then the prediction market tells the Iranians they’re about to get bombed,” he said.

A weapon for foreign influence: The Atlantic Council has described prediction markets as “dual-use infrastructure.” Unlike traditional markets, these platforms often operate with thinner liquidity, making them more vulnerable to coordinated actors’ trading activity. In theory, state or non-state actors could take strategic positions to move odds, shape narratives, or amplify misinformation. During volatile geopolitical moments, even small shifts in pricing could feed back into online discourse, reinforcing speculation or panic.

Governing for gains: The scale of money involved raises the specter of officials influencing real-world decisions to protect personal trading positions. A bill has already been introduced in the US Congress that would bar political insiders from participating in these markets.

However, supporters argue that these markets improve price discovery and democratize forecasting. Critics counter that transforming war and diplomacy into tradable contracts risks creating incentives that thrive on instability itself.

MARKETS THIS MORNING-

It is shaping up to be a volatile week of trading as markets react to US President Donald Trump’s latest tariff announcement and brace for Nvidia’s earnings out later this week. Wall Street futures are in the red this morning. Looking at Asia-Pacific markets, the Kospi and Hang Seng are starting the week in the green, while Japan’s Nikkei is closed for the Emperor’s Birthday.

EGX30

49,561

-2.2% (YTD: +18.5%)

USD (CBE)

Buy 47.74

Sell 47.88

USD (CIB)

Buy 47.77

Sell 47.87

Interest rates (CBE)

19.00% deposit

20.00% lending

Tadawul

10,947

-1.9% (YTD: +4.4%)

ADX

10,581

-0.3% (YTD: +5.9%)

DFM

6,591

-0.3% (YTD: +9.0%)

S&P 500

6,910

+0.7% (YTD: +0.9%)

FTSE 100

10,687

+0.6% (YTD: +7.6%)

Euro Stoxx 50

6,131

+1.2% (YTD: +5.9%)

Brent crude

USD 71.76

+0.1%

Natural gas (Nymex)

USD 3.05

+1.7%

Gold

USD 5,081

+1.7%

BTC

USD 67,575

-0.6% (YTD: -22.9%)

S&P Egypt Sovereign Bond Index

1,029

+0.1% (YTD: +3.6%)

S&P MENA Bond & Sukuk

153.36

-0.1% (YTD: +1.0%)

VIX (Volatility Index)

19.09

-5.6% (YTD: +27.7%)

THE CLOSING BELL-

The EGX30 fell 2.2% at yesterday’s close on turnover of EGP 4.6 bn (26.4% below the 90-day average). Local investors were the sole net buyers. The index is up 18.5% YTD.

In the green: Misr Cement (+2.1%), Edita (+0.8%), and Kima (+0.4%).

In the red: Rameda (-5.7%), Fawry (-5.3%), and GB Corp (-4.7%).

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BLACKBOARD

Mandatory education expansion shifts the investment case for Egyptian mid-market schools

The government is looking to extend compulsory schooling from 12 to 13 years, with formal education set to begin from the age of five, according to a statement from the Education Ministry earlier this month. But the proposed plan — set to come into effect within two to three years to give the sector time to prepare for twice the number of students joining in a single year — will need to see private-sector investment increase to meet the greater number of students.

Education Ministry Spokesperson Shady Zalta put the start date for the 2028-29 academic year in comments to EnterpriseAM, with the move facilitated through merging the two-year kindergarten period into just one year and including it in the compulsory education.

More years of compulsory education means more students, which means we’re going to need more schools. To meet the resulting uptick in demand, the ministry is looking to court private developers to build 1k new schools, a senior government official tells EnterpriseAM.

The ministry is sweetening the pot to persuade private players to invest in new schools, with golden licenses available to foreign investors, addressing land availability issues, and permitting school construction on smaller plots than originally allowed to accommodate the scarcity of land in densely populated areas.

It’s hoping demand will get investors to look beyond a narrow focus on elite international schools toward other areas of private sector education. While private-sector education accounts for 17% of total enrollment — up from 10.2% in 2021 — a large proportion of recently established schools are in the international education segment, Association of Private School Owners in Egypt head Badawi Allam tells EnterpriseAM.

A move toward school models that address broader demand could significantly expand investment in the sector, Allam added. While rising construction costs and lengthy return-on-investment periods have deterred many investors from all but the most lucrative school models, the country’s demographics tell a different story. A cursory glance at spending power reveals there is a sizable segment of families priced out of more expensive school models yet willing to spend on their children’s education to move them out of the state school system.

The push aligns with broader goals laid out in the recently released second edition ofthe National Narrative for Comprehensive Development, which include increasing the private sector’s share of the education market to 20% by 2030.

Along with new schools, we will need new teachers, educational psychology professor Tamer Shawky tells us. But building the country’s stock of teaching staff will be hard considering that Egypt lost 127k teachers between 2018 and 2023, according to data from the narrative.

What’s next? The proposal is still under review, after which it will be presented for public consultation before being submitted to the House, Zalta tells us.


2026

FEBRUARY

25 February (Wednesday): IMF’s Executive Board meeting for our sixth and seventh reviews.

MARCH

15 March (Sunday): IMF to hold its seventh review of Egypt’s USD 8 bn EFF arrangement.

21 March: (Saturday): Eid El Fitr starts (TBC).

30 March – 1 April (Monday-Wednesday): Egypt International Energy Conference and Exhibition (EGYPES).

APRIL

2 April (Thursday): Monetary Policy Committee’s second meeting of 2026.

12 April (Sunday): Coptic Easter.

25 April (Saturday): Sinai Liberation Day.

MAY

1 May (Friday): Labor Day.

21 May (Thursday): Monetary Policy Committee’s third meeting of 2026.

27-29 May (Wednesday-Friday): Eid El Adha (TBC).

JUNE:

30 June (Tuesday): National holiday in observance of the June 30 Revolution (TBC).

JULY

9 July (Thursday): Monetary Policy Committee’s fourth meeting of 2026.

23 July (Thursday): National holiday in observance of Revolution Day (TBC).

AUGUST

20 August (Thursday): Monetary Policy Committee’s fifth meeting of 2026.

26 August (Wednesday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

SEPTEMBER

15 September (Tuesday): IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

24 September (Thursday): Monetary Policy Committee’s sixth meeting of 2026.

27-29 September (Sunday-Tuesday): Global Conference on Population, Health, and Human Development.

OCTOBER

6 October (Tuesday): Armed Forces Day.

29 October (Thursday): Monetary Policy Committee’s seventh meeting of 2026.

DECEMBER

17 December (Thursday): Monetary Policy Committee’s eighth meeting of 2026.

EVENTS WITH NO SET DATE

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

Early 2026: The government will launch the second package of tax breaks.

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

1Q 2026: Turkish President Recep Tayyip Erdogan to visit Egypt.

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

2H 2026: Operations at Deli Glass Co’s new USD 70 mn glassware factory kick off.

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.

2027: Egypt-EU Summit 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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