Egypt will put forward a plan to rebuild Gaza

Wednesday, 12 Feb 2025

Egypt will put forward a plan to rebuild Gaza

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Today at a glance

Diplomacy

Egypt to put forward plan to rebuild Gaza as Trump doubles down on his plan to push Gazans into Egypt and Jordan.

Investment Watch

Egypt to invest USD 250 mn setting up two industrial zones in Libya.

What We're Tracking Today

Spain’s WHM wants to set up a USD 1.8 bn data center in Egypt.

M&A WATCH

Beltone Capital acquires majority stake in Baobab from Apis Partners.

Energy

Int’l energy players will invest USD 130 mn in oil and gas drilling.

REGULATION WATCH

FRA revises guidelines governing ins. firms’ investments.

PLANET FINANCE

Trump’s tariffs could delay Fed rate cuts as inflation risks rise.

HARDHAT

Can Egypt help meet the growing demand for sustainable aviation fuel?

What We're Tracking Today

Spain’s WHM wants to set up a USD 1.8 bn data center in Egypt

Good morning, friends. We have another packed issue for you this morning breaking down the latest developments in the diplomacy sphere following the meeting between Jordan's King Abdullah and Trump, where Trump continued to push the displacement agenda, and Egypt saying it will put forward a comprehensive proposal to rebuild Gaza.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 18°C and a low of 10°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 18°C and a low of 11°C.

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WATCH THIS SPACE-

#1- A USD 1.8 bn healthcare data center in the works? Spanish medical consultancy WHM is looking into setting up a USD 1.8 bn healthcare data center in Egypt through a consortium of investors and in partnership with the CIT Ministry, according to a statement. The project, which was proposed to Investment Minister Hassan El Khatib during his visit to Spain, aims to help position Egypt as a regional hub for AI-driven medical services.

Details TBD: The terms of the project are set to be hammered out over a series of followup meetings between the company and local authorities. El Khatib extended an invitation to WHM to visit Egypt to explore potential investments, highlighting the government’s willingness to provide the needed support for WHM to invest in the local market.

ICYMI- A key initiative of the second edition of Egypt’s National Artificial Intelligence Strategy, released last month, is establishing advanced data centers in a drive to develop the country’s AI infrastructure.

#2- Private players to take over public labs? Gulf and local investors — including an unnamed Emirati company — have reportedly expressed interest in managing and operating radiology and lab services in Health Ministry institutions, starting with the newly developed medical city at Nasser Institute, Al Mal reports.

The details: The partnership is expected to see the government provide the underlying assets and a portion of the equipment for the project, with the private sector partner set to supply the remainder of the equipment and come up with a pricing scheme for health services.

DATA POINT-

#1- The government plans to increase domestic wheat purchases from farmers by around 11% y-o-y to 4 mn tons during the harvest season starting mid-April, Supply Minister Sherif Farouk told Asharq Business. The government is targeting wheat imports of 6 mn tons this year — down from 6.2 mn tons in 2024 — Farouk added.

ICYMI-Egypt's total wheat imports hit a 10-year peak at 14.2 mn tons in 2024, marking a 31.5% y-o-y increase.

On the demand side: Egypt's total wheat consumption stood at nearly 20 mn tons last year, with a similar level expected this year, Farouk said.

#2- The number of high-speed mobile internet users in Egypt grew 10.5% y-o-y in 2024 to reach 87.4 mn, according to data from state statistics agency Capmas. Meanwhile, some 11.6 mn users had active home internet subscriptions last year, marking a 6.9% y-o-y increase.

HAPPENING TODAY-

Abdelatty leaves Washington for Addis Ababa: Foreign Minister Badr Abdelatty is in the Ethiopian capital today to participate in the Ordinary Session of the African Union’s Executive Council taking place today and tomorrow in the leadup to the two-day AU Summit kicking off on Saturday, according to a ministry statement. During his time in Ethiopia, Abdelatty will hold talks with his African counterparts and AU officials on regional issues and efforts to enhance bilateral relations.

THE BIG STORY ABROAD-

Trump doubled down on his plan to forcibly displace Gazans in an impromptu press conference with King Abdullah II of Jordan, the first Arab leader to meet with the US President after his controversial statements sparked wide regional and international criticism.

“We’re gonna have Gaza … there’s nothing to buy. Gaza is a war-torn area,” Trump said, responding to a question regarding where the money will come from and who the US will buy Gaza from. Gazans will be resettled in a “parcel of land” in Jordan, another in Egypt, with other countries potentially hosting more refugees, Trump added. On the matter of cutting aid to Egypt and Jordan, the US President said: “I don’t have to threaten that, I think we’re above that.”

King Abdullah seemed unwilling to respond to Trump’s pressures to publicly endorse his plan, circling back to Jordan accepting 2k ill Palestinian children from the strip for treatment. Abdullah added that Arab nations are putting together alternative proposals with the support of regional and European players, and that there is no need to “get ahead of ourselves.” The King later reiterated in posts on X that Jordan is part of a “unified Arab position” opposing any displacement of Palestinians in Gaza and the West Bank.

We have the full story in the news well, below.

The conference came as the fraught ceasefire in Gaza is on the brink of collapsing. Israeli Prime Minister Benjamin Netanyahu warned Israel will resume “intense fighting” if Hamas does not move forwards with the planned release of Israelis, with Israeli troops already amassing in and around Gaza. Meanwhile, Trump reiterated in the presser his advice that Israel “let hell break out” if Hamas ignores the deadline he put earlier for releasing captives by Saturday noon. (Bloomberg | NYTimes | CNN | Reuters | BBC)

MORE FROM TRUMP- Trump earlier signed an executive order to halt enforcement of the Foreign Corrupt Practices Act that prohibits bribing foreign government officials for business gains. “It’s going to mean a lot more business for America,” the President said. (FT | Reuters | BBC)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We look at how Egypt can help meet the growing demand for sustainable aviation fuel.

Tags:

healthcare What We're Tracking Today

Somabay Welcomes World Aquatics Open Water World Cup for the Third Year

Somabay proudly hosts the World Aquatics Open Water World Cup for the third consecutive year, reinforcing its status as a top watersports destination. The training camp will run from 18-22 February at Somabay’s state-of-the-art OneFlow Aquatics Centre, preparing athletes from 21 countries for the competition. From 21-22 February, they will compete in three races, further cementing Somabay’s appeal for international swimming events.

Diplomacy

Egypt to put forward plan to rebuild Gaza as Trump doubles down on his plan to push Gazans into Egypt and Jordan

Egypt will propose a plan to rebuild Gaza: Egypt plans to “present a comprehensive vision for the reconstruction of the Gaza Strip in a manner that ensures the Palestinian people remain in their homeland and aligns with their legitimate and legal rights,” Foreign Ministry said in a statement out early this morning. Egypt will also work with the US administration, led by President Donald Trump, to reach peace in the region and a “just settlement of the Palestinian cause that upholds the rights of the region’s peoples.

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

We already have a plan: Egypt has already put forward two plans to rebuild Gaza without displacing its people, unnamed sources told Al Arabiya, reaffirming that Egypt will not take in Gazans and has firmly rejected three proposals involving forced displacement.

Egypt has asked the Trump Administration to clarify Trump’s statements regarding the withholding of aid, Al Arabiya’s source said.

Trump isn’t backing down: During a meeting with Jordan’s King Abdullah in the Oval Office, Trump repeated his vow to take over Gaza to which King Abdullah reiterated Jordan, Egypt, and the overall Arab stance on the matter. “I have to look into the best interests of my country … Let’s wait until the Egyptians [present their ideas],” he said.

Doubling down: “I believe we'll have a parcel of land in Jordan. I believe we'll have a parcel of land in Egypt,” Trump said. “We may have someplace else, but I think when we finish our talks, we'll have a place where they're going to live very happily and very safely.”

Baseless confidence: “We’re going to be able to work something, and I know we’ll be able to work something also with, I believe, not, not 100%, but 99% we’re going to work out something with Egypt,” Trump said.

Trump appears to take back threats to withhold US aid from Egypt and Jordan unless they take in refugees from Gaza — “I don't have to threaten that. I do believe we're above that,” he said.

IN CONTEXT- This follows threats from Trump earlier this week to withhold aid from the two nations if they refuse to take in refugees forced out of Gaza as part of his plan to push out Palestinians from their homeland.

El Sisi's visit to the White House may not happen soon? While Trump has invited President Abdel Fattah El Sisi for a visit, El Sisi has reportedly postponed his planned visit to Washington after Trump continued to push for the displacement of Gaza’s residents, unnamed sources told Al Arabiya.

ALSO IN WASHINGTON-

Gaza continued to top the agenda of Foreign Minister Badr Abdelatty’s meetings during his time in Washington. The minister met with leading Republican Senator Lindsey Graham, Republican Congressman and Congressional Friends of Egypt Caucus Co-Chair Mario Diaz Balart, Republican Congressman and Foreign Affairs Committee Chairman Brian Mast, Republican Senator and Senate Appropriations Committee Chairman Susan Collins, Democratic Senator and ranking member of the Senate Appropriations Committee's Subcommittee on State, Foreign Operations and Related Programs Brian Schatz, and Vice President of the Heritage Foundation Victoria Coates.

Abdelatty’s presence in the country coincides with Trump’s threat to call for Israel to restart the war if Hamas does not release more detainees by Saturday noon. Trump’s demand followed the group temporarily suspending the release of hostages on the back of consistent and deadly Israeli violations of the ceasefire, which have prevented essential aid from entering the enclave and murdered numerous civilians.

A busy trip for the minister: Abdelatty spent the first half of his time in Washington in meetings with US Secretary of State Marco Rubio and a handful of other US officials.

Tags:

Badr Abdelatty DIPLOMACY Donald Trump Egypt-US relations Middle East politics

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Investment Watch

Egypt to invest USD 250 mn setting up two industrial zones in Libya

Egypt to establish two industrial zones in Libya: Egypt is moving forward with plans to set up two industrial zones in Libya with investments of USD 250 mn, member of Federation of Egyptian Industries’ Arab Cooperation Committee Alaa Nasr told EnterpriseAM, explaining that 22 local players have already expressed interest in setting up shop in the new zones and more are expected to follow in their footsteps.

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

As things stand: The Egyptian side has secured a 1.2 mn sqm plot to set up the zones on, he said.

We knew this was coming: Last October, Benghazi hosted a delegation from the Federation of Egyptian Industries for the Libyan-Egyptian Industrial and Trade Forum, during which Omar Abdel Aziz, Head of the FEI’s Foundries Division said he is setting up an industrial complex in Tripoli with Wazan for Steel and Metal Company, as well as another complex in Benghazi.

Just scratching the surface: The two zones top the list of agreements signed during the visit, which you can check out in detail in our coverage of the story here.

How will it work? Local investors looking to enter the Libyan market are in the process of setting up a JV to facilitate partnerships with Libyan players, committee head Mohamed El Bahy told EnterpriseAM.

Key sectors: While the 22 local players interested in setting up factories in the new zones span various sectors, some of the most notable include steel, chemicals, wood, furniture, lighting systems, and engineering industries, El Bahy said.

We know one of the companies involved: Plastics and acrylic manufacturer Rubex is one of the local players setting up shop in the Libyan industrial zones, according to an EGX disclosure (pdf). The company will also start taking the necessary steps to set up a branch in the neighboring country.

Why Libya? Libya offers an investment-friendly environment, on top of its extremely cheap energy prices, making it an attractive investment destination for energy-intensive industries like iron, cement, and ceramics, El Bahy told us last year.

Tags:

investment watch Libya

A MESSAGE FROM VISA

The top trends shaping payments in 2025

Payments are becoming increasingly digital, flexible and driven by consumer choice. As non-cash transactions surge toward an estimated USD 2.8 tn by 2028, a transformation toward instant, streamlined, secure payments is taking place.

HERE’S WHAT YOU NEED TO KNOW-

AI will be transformational, reducing fraud and personalizing payment experiences: In the last decade alone, Visa has invested USD 3 bn in our AI and data infrastructure. In 2024, we introduced three new AI-powered risk and fraud prevention solutions that have the potential to significantly reduce the risk of fraud across account to account (A2A) and card-not-present (CNP) payments, as well as transactions on and off Visa’s network.

Biometrics are the future, reducing the risk of hacking and eliminating the need for passwords: Authentication is moving away from PINs and passwords and will rely more on your face, your fingerprints or other biometrics, which not only means that you don’t have to keep track of passwords, it also reduces the risk of fraud. Products like Visa Payment Passkey Service do precisely that.

Real-time payments (RTPs) are gaining momentum making trade and global growth easier: The U.S. FedNow service and Europe’s Instant Credit Transfers Scheme (SEPA) are driving more seamless 24/7 instant payments, but fraud protection and global interoperability remain key issues.

A2A payments will become more streamlined, giving consumers more payment options: Products like pay by bank are digitizing and simplifying A2A payments. Emerging tools like Visa Protect for A2A Payments, are also rolling out to help mitigate fraud on RTP networks.

Embedded finance is the future, allowing users to access financial services in one place: Third-party financial products and services are being embedded into otherwise non-financial digital platforms. When done right, it’s a four-way win for service providers, digital enablers, distributors, and end-users.

Faster cross-border payments are keeping up with the demands of globalization: By 2028, cross-border payments are expected to account for 33% of global e-commerce spending. Interoperable global RTP networks that are not siloed and can process payments in multiple currencies will be the future. Visa Direct is a great example of a global RTP network that is interoperable and enables faster, more cost-effective cross-border capabilities for individuals and businesses.

The future of payments is here: fast, secure, and consumer-centric. Explore the possibilities at Visa.com.

Tags:

A MESSAGE FROM VISA Visa

Energy

Int’l energy players to invest USD 130 mn in oil and gas drilling in Egypt

USD 130 mn in fresh energy investments? Two consortiums of international energy players are set to invest a total of USD 130 mn over the next five to eight years in drilling 10 oil and gas exploration wells in East Port Said and the Western Desert, Al Arabiya reports, citing government documents.

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

Remember: The House earlier this week approved the two agreements after reviewing and approving the reports conducted by the Energy and Environment Committee regarding the agreements.

The first consortium will drill three wells in the East Port Said offshore concession: A consortium of three companies — Eni’s subsidiary IEOC, BP, and Qatar Energy — is set to invest USD 100 mn drilling three exploratory oil and gas wells in the 2.6k sqm East Port Said offshore area in the Mediterranean Sea over a period of eight years, according to the documents reviewed by the outlet.

The timeline: The wells will be drilled in three phases, with the first three-year phase to see the consortium invest USD 40 mn, the second three-year phase USD 30 mn, and the final two-year phase USD 30 mn.

The second consortium will reportedly drill seven wells in the Western Desert, investing USD 30 mn across two phases. This consortium of IEOC and Apex International Energy will invest USD 17 mn to drill four wells over the first, three-year phase of the project. It will drill an additional three wells with USD 13 mn in investments over two years. The two consortiums have submitted a request to the Egyptian General Petroleum Corporation (EGPC) to amend their concession agreement to increase their investments.

AND MORE ENERGY INVESTMENTS FROM APACHE-

Apache to funnel USD 60 mn into Western Desert drilling: US oil producer Apache is set to kick off a USD 60 mn drilling program in its Western Desert blocks in March as it looks to ramp up natural gas production by a daily 80 mn cubic feet, Asharq Business reports, citing an unnamed government official. The project is reportedly part of a wider five-year plan by the company to invest USD 3.5 bn in exploration, research, and production in the Western Desert.

The target: Apache, Egypt’s largest oil producer, reportedly plans to ramp up its daily natural gas production in Egypt to 500 mn cubic feet per day from a current 450 mn cubic feet by the end of fiscal year 2024-2025.

ICYMI- Apache recently signed up for four additional Western Desert blocks totaling over 6.3k sqm, representing a 30% increase to the company’s overall concessions in Egypt.

Tags:

BP energy oil and gas Qatar Energy

M&A WATCH

Beltone Capital acquires majority stake in Baobab from Apis Partners

Beltone Capital acquires Apis Partners’ full majority stake in Baobab: UK private equity outfit Apis Partners has fully exited its majority stake in African SME-focused financial services provider Baobab Group, with Beltone Holding subsidiary Beltone Capital acquiring the company’s stake, Apis Partners said in a press release. The price tag of the acquisition was not disclosed.

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

We saw this coming: Beltone Holding announced yesterday that it had inked a share purchase agreement to acquire a majority stake in the African SME-focused financial services provider for an undisclosed amount. The news followed a previous announcement last month that Beltone Capital had entered into a put option agreement to acquire the stake.

The acquisition is in line with Beltone’s expansion plans: Beltone has been looking toward expansion for some time now, with Beltone Holding CEO and managing director Dalia Khorshid previously stating that the firm was looking to expand into high-growth regional markets. Baobab, for its part, has existing operations in Senegal, Côte d'Ivoire, Madagascar, Burkina Faso, Mali, Democratic Republic of Congo, and Nigeria, along with a 500k customer base.

What they said: “This strategic acquisition marks a significant milestone in our data-driven regional expansion into high-growth African and emerging markets, reinforcing our commitment to financial inclusion and impactful product offerings,” Khorshid said in the press release. “Baobab’s strong market presence enhances our ability to provide innovative financial solutions, fostering its growth, enhancing its digital capabilities, and expanding its client base with scalable, technology-driven services that drive economic empowerment.”

Tags:

Apis Partners Beltone Capital Beltone Holding M&A Watch

REGULATION WATCH

FRA revises guidelines governing ins. firms’ investments

FRA rolls out new rules regulating ins. companies’ investments: The Financial Regulatory Authority (FRA) introduced new investment allocation requirements for ins. and rein. companies, according to a statement.

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

Mandatory investment in stock market funds: Under the new rules, ins. and rein. players will need to invest at least 5% of their free funds in open-ended funds that invest in EGX-listed equities. A single fund investment cannot exceed 5% of an insurer’s paid-up capital or 15% of the fund’s total assets — whichever is lower.

A chunk of their paid-up capital is also going to EGX-listed stocks: The new rules also require ins. players to invest at least 2.5% of their paid-up capital in open-ended funds that invest in EGX-listed stocks. The investment in a single fund cannot exceed 5% of the insurer’s paid-up capital or 15% of the fund’s total assets — whichever is lower.

Companies can opt to invest in stocks directly: With the FRA’s approval, companies can instead directly invest in listed stocks and have that account toward the new requirements.

The new rules also introduce a cap on equity investments: The FRA introduced a cap on the total amount ins. and reins. companies can invest in stocks or funds — their investments now cannot exceed 30% of their total funds allocated for investment. Under the new rules, no more than 5% of a company’s total investments can go to commodities and metals — be it through related funds or other instruments.

What about real estate investment funds? Under the new regulations, personal ins. companies can invest up to 10% of their investment-allocated funds in real estate investment funds. Meanwhile, the cap for property and liability ins. players comes in at 5%. The investment in a single fund cannot exceed 5% of the ins. firm’s paid-up capital or 15% of the fund’s total assets — whichever is lower.

The exception: The caps don’t apply to real estate funds the ins. company had a hand in setting up.

SOUND SMART- Free funds refer to shareholder equity, used for general business operations and investments, while allocated funds are the reserves insurers must maintain to meet future claims. The new regulations ensure a clear distinction between the two, setting different investment rules for each category to balance risk and return while protecting policyholders.

What’s next? Ins. players will have six months to meet the new investment thresholds but must immediately halt additional investments in asset classes where they have exceeded the new caps.

Stronger oversight and transparency requirements: The new regulations introduce measures tightening oversight and governance requirements for ins. firms’ investment practices, requiring companies to implement control systems to prevent errors and submit their investment policy to the FRA annually and keeping the authority up to date with any amendments to the policy.

FRA has been revisiting ins. companies’ investment guidelines: The country’s regulator amended the rules governing private ins. funds and the caps on their investments last month, a move aimed at helping them diversify their investment portfolios.

Tags:

capital markets EGX Financial Regulatory Authority insurance regulation watch

LAST NIGHT’S TALK SHOWS

Anger and rage on the airwaves as the nation’s talking heads react to Trump’s threats

All about Trump’s threat to halt US aid to Egypt: The nation’s talking heads had a lot to say about US President Donald Trump’s threat to halt US aid to Egypt and Jordan if they refuse to take in Gazans.

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

“Trump’s words are empty threats and we must stand firm, let US aid go to hell,” political commentator Mostafa El Feki told Yahduth Fi Misr’s Sherif Amer (watch, runtime: 20:10), warning that Israel would pay a “hefty price” to pay if peace with Egypt was threatened. El Feki described Trump’s proposal as “far worse than ethnic cleansing” and urged Egyptian officials to respond decisively.

How important is US aid to us? Amer provided a detailed overview of US aid to Egypt (watch, runtime: 4:24).

The Ahmed Moussa take: Ala Masouleety’s Ahmed Moussa told his viewer (watch, runtime:30:14) that “Egypt will not back down” from its commitment to the Palestinian cause, even after Trump’s threats. Moussa described Trump’s remarks during a meeting with Jordan’s King Abdullah as “alarming,” particularly the suggestion of allocating land in Egypt and Jordan for Palestinian resettlement. He warned that Israel’s control over Gaza is just the first step in a broader push to expand settlements into neighboring territories.

ALSO ON THE AIRWAVES- Kelma Akhira’s Lamees El Hadidi hosted (watch, runtime: 25:52) legal representatives of landlords and tenants of properties under the “old rent” law to talk about their proposals to amend the law after the Supreme Constitutional Court’s ruling in November obligating lawmakers to amend it, which is expected to be discussed in the House over the next few months.

Tags:

LAST NIGHT’S TALK SHOWS Middle East politics

Also on our Radar

Suez Canal completes EGP 9 bn southern expansion

LOGISTICS-

The Suez Canal’s EGP 9 bn southern expansion has been completed, Suez Canal Authority head Osama Rabie said yesterday. The 10 km expansion will improve navigation through the canal by 28%, he told Lamees El Hadidi (watch, runtime: 14:15).

AUTOMOTIVE-

Could the local manufacture of Mitsubishi vehicles be imminent? A delegation from Japan’s Mitsubishi will soon visit Egypt as the company looks into locally manufacturing its vehicles in Egypt, unnamed sources from the Industry Ministry told Al Mal. The automotive giant is currently mulling its options — taking on the project on its own or in partnership with a local player.

We had an idea this was happening: Earlier this month, Al Mulla Group said it is in talks with Mitsubishi to localize the manufacture of its vehicles in Egypt.

ENERGY-

Lukoill awarded South Wadi El Sahl concession: Russian energy giant Lukoil will invest USD 22.5 mn to drill six exploratory wells in the South Wadi El Sahl oil concession west of the Gulf of Suez after it was awarded the concession, unnamed sources told Al Mal.

Tags:

ALSO ON OUR RADAR automotive oil and gas Suez Canal

PLANET FINANCE

Trump’s tariffs could delay Fed rate cuts as inflation risks rise

Trump’s trade policies will likely put Fed rate cuts on hold — at least for now: The US Federal Reserve is expected to hold off on cutting interest rates until at least next quarter, with US President Donald Trump’s recently announced tariffs igniting fresh concerns about inflation risks, according to a Reuters poll of 101 analysts conducted between 4-10 February. The survey results suggest that Fed officials will adopt a wait-and-see approach as they assess how tariffs and other policy changes could affect the economy before making any further rate cuts.

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

The forecast marks a stark shift from Reuters’ January poll, which saw close to 60% of economists agree that the Fed would cut rates in March. In contrast, just 22 of the 101 analysts polled in February expected a cut in March, with another 45 penciling in a cut for 2Q 2025. Only 17 of the 99 analysts who offered end-of-year forecasts believed that the Fed would hold off on rate cuts until 2H, with another 16 not expecting any cuts this year. Futures markets, for their part, are currently pricing in just over a 50% probability of one rate cut by mid-2025.

The size of the year’s cuts is also up in the air: The range of forecasts for the Fed’s end-2025 rate target is unusually wide, spanning from 3.00-3.25% on the lower end to 4.50-4.75% on the high end.

The uncertainty is all thanks to Trump: The Fed and economic analysts alike have been bracing for the impact of Trump’s policies since his election win in November 2024, with officials indicating that they are reluctant to make additional cuts until the full effect of his policies becomes clear. The Fed declined to make a rate cut at the last meeting of its Federal Open Market Committee (FOMC) on 29 January, prompting Trump to deride the decision before making a sharp about-face several days later.

The US president’s recently imposed tariffs are a key part of the picture, with ING Economist James Knightley telling Reuters that “the tariffs are inflationary and could be quite negative for economic growth as well.” Trump has already imposed a 10% tariff on USD 450 bn worth of Chinese goods and 25% tariffs on steel aluminum imports and vowed to impose reciprocal tariffs matching those imposed by other US trade partners. The president has also threatened to impose 25% tariffs on US imports from Mexico and Canada, with the measures on hold until 1 March as the neighboring countries continue to negotiate over border security.

Analysts have broadly reconsidered their inflation forecasts since Trump’s win, with 90% of the economists that participated in both the October 2024 and February 2025 Reuters polls revising their 2025 inflation estimates upward by an average of 40 basis points between the two polls.

We may not get more clarity on the Fed’s long-term vision for interest rate cuts for quite a while: “The uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025,” Capital Economics’ Neil Shearing told the newswire.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning — Japan’s Nikkei is looking at gains of 0.4%, the Shanghai Composite is up 0.1%, and Kospi is up 0.2%.

EGX30	29,564	-1.1% (YTD: -0.6%)
USD (CBE)	Buy 50.39	Sell 50.53
USD (CIB)	Buy 50.41	Sell 50.51
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,424	-0.4% (YTD: +3.2%)
ADX	9,639	+0.1% (YTD: +2.3%)
DFM	5,336	+1.4% (YTD: +3.4%)
S&P 500	6,069	0.0% (YTD: +3.2%)
FTSE 100	8,777	+0.1% (YTD: +7.4%)
Euro Stoxx 50	5,391	+0.6% (YTD: +10.1%)
Brent crude	USD 76.78	+1.2%
Natural gas (Nymex)	USD 3.52	+2.2%
Gold	USD 2,933	-0.1%
BTC	USD 95,926	-1.5% (YTD: +2.8%)

THE CLOSING BELL-

The EGX30 fell 1.1% at yesterday’s close on turnover of EGP 4.1 bn (10.7% above the 90-day average). International investors were the sole net buyers. The index is down 0.6% YTD.

In the green: Abu Kir Fertilizers (+2.5%), Telecom Egypt (+0.8%) and CIB (+0.2%).

In the red: Palm Hills Development (-5.3%), Rameda Pharma (-4.6%) and Qalaa Holdings (-4.3%).

CORPORATE ACTIONS-

#1- EFG Holding doles out 4.5 mn shares to employees: Our friends at EFG Holding transferred some 4.5 mn shares valued at EGP 33.8 mn to their employees yesterday as part of the company’s staff reward and incentive program, according to an EGX bulletin.

#2- Talaat Moustafa Group CEO Hisham Talaat Moustafa purchased 450k of the group’s shares this week, according to an EGX disclosure (pdf).

#3- Saib Bank shareholders in line for dividends: Saib Bank’s board approved a proposal to distribute cash dividends of USD 19.9 mn — or USD 0.6 per share — for the fiscal year 2024, according to an EGX disclosure (pdf).

Tags:

Financial Markets Planet Finance

HARDHAT

With demand for sustainable aviation fuel reaching new highs, can Egypt help meet the growing demand?

Air travel is back in business and so is global demand for aviation fuel: Global air travel is bouncing back to pre-pandemic levels, pushing up demand for jet fuel. Consumption of jet fuel and kerosene hit 8 mn barrels per day (bbl / d) last summer, the highest since late 2019, according to a report from S&P Global. Annual demand was projected to climb 550k bbl / d y-o-y in 2024, and a further 300k bbl / d y-o-y in 2025, driven by China and Western Europe.

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

And with a growing demand for aviation fuel, comes a growing demand for sustainable aviation fuel: The supply of sustainable aviation fuel — commonly referred to as SAF — is set to expand, with 2 bn gallons expected to hit the market by 2028, bringing the industry closer to its 3 bn-gallon target for 2030, according to the SAF Grand Challenge report (pdf). Despite a threefold increase in production last year, SAF still accounts for less than 1% of global jet fuel demand, International Air Transport Association’s (IATA) Gulf and Near East manager Khaled Al Eisawi said at an aviation conference in Dubai in November.

But first, what is SAF exactly? SAF is a biofuel used to power aircraft that is made from non-petroleum feedstock such as waste cooking oil, animal fat, and non-food crops. It can reduce carbon emissions by up to 80% compared to traditional jet fuel, according to the IATA estimates.

The EU’s regulatory push could further boost SAF demand from the bloc — with Egypt in a prime position to take advantage: The EU’s ReFuelEU mandates as of this year require aviation fuel suppliers to include a 2% SAF blend in the total aviation fuel pool at EU airports. This regulatory push is expected to boost European SAF consumption by 216% y-o-y, reaching 1.9 mn tons in 2025, according to S&P Global data. Germany, France, and Spain are expected to account for nearly 40% of this demand.

Europe’s clean jet fuel rollout is set to face turbulence: With hefty fines looming for fuel suppliers that miss the EU’s SAF blending targets, major players are expected to front-load blending in early 2025 — pushing up spot SAF prices. But Europe’s SAF supply chain isn’t ready to meet demand, according to the S&P data. Despite plans to produce 1.5 mn mt of SAF next year, investment is lagging as Shell, Chevron, and BP delay projects over high CAPEX costs and policy uncertainty.

Against this backdrop, Egypt’s Oil Ministry launched the Sustainable Aviation Fuel Production Company in November of last year, committing USD 530 mn to develop SAF production facilities and integrate them with other petroleum firms. The project targets 120k tons of SAF output annually, aiming to cut 400k tons of carbon emissions per year once production begins in the coming years.

This isn’t new: The Oil Ministry has been laying the groundwork for Egypt’s first SAF production, with state-owned firm Egyptian Petrochemicals Holding Company (ECHEM) set to launch operations in 2025, pending the completion of feasibility studies, according to a government source who spoke to us previously.

The move aligns with US multinational conglomerate Honeywell wrapping up its SAF feasibility study with the European Bank for Reconstruction and Development (EBRD). The study is expected to inform investment decisions and production timelines as Egypt seeks to position itself as a regional SAF supplier.

Egypt is moving to streamline SAF feedstock procurement, with the Environment Ministry planning a platform to source waste cooking oil from the private sector, according to a Waste Management Regulatory Authority official. But with much of the supply chain dominated by informal collectors and refiners, the government will need to accelerate licensing efforts to bring them into the formal economy and ensure a stable, scalable supply for SAF production.

While a regulatory framework for SAF production is in the works, industry insiders warn that clear pricing incentives and investment guarantees will be critical to positioning Egypt as a competitive supplier. The country’s oil refining and derivatives market has increasingly been attracting investments, but SAF projects have yet to see the same level of capital inflows, leaving questions over whether Egypt can attract the funding needed to scale up production.

Beyond SAF, Egypt explores wider biofuel production: The Egyptian government is also assessing alternative biofuel projects, with research underway into jatropha, rice straw, water hyacinths, and giant reed as feedstocks. Some of the output could be exported to Europe, given the bloc’s increasing reliance on renewable fuels. Italian energy major Eni is working with Egyptian authorities on a biogas project with a capacity of 4.7 cubic meters per day, while Norwegian biogas firm Antec has expressed interest in entering the Egyptian market.

THE BIGGER PICTURE IN THE REGION-

Emirates Airlines is investing over USD 200 mn in clean jet fuel, committing to SAF-powered flights from Singapore, Amsterdam, and London as part of its push toward net-zero emissions by 2050. However, the airline’s Chief Commercial Officer Adnan Kazim, speaking at the opening ceremony of Emirates World’s store in Egypt, emphasized the limited availability and high cost of SAF, calling for greater government support to scale production.

The UAE is also looking to turn its waste into jet fuel, with the Dubai Municipality singing an agreement back in February of last year to turn waste into jet fuel, partnering with Belgium’s Besix, Japan’s Marubeni Middle East and Africa Power, and UAE-based Enoc Marketing to convert municipal waste into sustainable aviation fuel. The agreement will see the municipality supply solid and organic waste, along with green hydrogen from sewage treatment, for fuel production. The project is still under study but is slated for implementation by July 2025. The UAE is also looking to scale up domestic production, targeting SAF to account for 1% of national airline fuel use by 2031.

Saudi Arabia is also developing its own SAF infrastructure, with Norwegian SAF producer Nordic Electrofuel securing Saudi government approvals in December to develop an e-SAF plant in Jubail, with land and solar assets allocated for the project. The plant — set to produce 350 mn liters of e-SAF annually — could launch by 2029 if fast-tracked, using solar power from existing regional assets and in-house green hydrogen production. Saudi Arabia is ramping up its e-fuel ambitions, with Aramco, TotalEnergies, and the Saudi Investment Recycling Company evaluating a SAF plant in the Eastern Province, while Aramco plans to bring two SAF demonstration projects online in Neom by 2025.

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CALENDAR

FEBRUARY

13-17 February (Thursday-Monday): The 10th Annual Conference of the Businesswomen of Egypt 21 Association, the Arab League HQ, Cairo.

15 February (Saturday): The 14th annual conference of CFA Society Egypt, InterContinental Cairo Semiramis, Cairo, Egypt.

15-16 February (Saturday-Sunday): African Union Summit, Addis Ababa, Ethiopia.

17 February: (Monday): Cypriot President Nikos Christodoulides will visit Egypt to sign agreements to transport Cypriot gas to Egypt to be liquefied and exported.

17-19 February (Monday-Wednesday): Egypt Energy Show, Egypt International Exhibition Center, Cairo, Egypt.

18 February (Tuesday): Central Bank of Egypt to publish trade balance figures.

18-19 February (Tuesday-Wednesday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

20 February (Thursday): The central bank’s Monetary Policy Committee meets to decide interest rates.

20 February (Thursday): The Egyptian-Swiss Business Circle and Kickstart Innovation are hosting Innovate Together: Business Opportunities Between Egypt and Switzerland

21-23 February ( Friday-Sunday): The First Arab Fraud Combating Summit.

27 February (Thursday): Emergency Arab Summit on the Palestinian issue, Cairo, Egypt.

BP to bring the second well of its Raven natural gas project online, with additional production capacity expected.

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

Subscription period for Your Home in Egypt initiative opens.

MARCH

3 March (Monday): Central bank to publish foreign reserve data for February.

4 March (Tuesday): S&P Global to release Egypt’s PMI figures for March.

10 March (Monday): Capmas expected to release inflation data for February.

Arla Foods’ deadline for Domty acquisition offer.

Operation of phase one of the Amotope wind farm.

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

10 April (Thursday): Capmas expected to release inflation data for March.

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

7-9 April (Monday-Wednesday): Narrative PR Summit launches 9th edition, Red Sea

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

17 April (Thursday): Monetary Policy Committee’s second meeting.

28-30 April (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

MAY

10 May (Saturday): Capmas expected to publish inflation data for April.

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development.

22 May (Thursday): Monetary Policy Committee’s third meeting.

Egyptian Exporters Association (Expolink) exhibition, Italy

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

JUNE

10 June (Tuesday): Capmas expected to publish inflation data for May.

June 2025: MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting.

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum.

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

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

DECEMBER

25 December 2025 (Thursday): Monetary Policy Committee’s eighth meeting.

December 2025: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

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

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

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

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

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

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

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

1H 2025: EGX launches a sharia-compliant sustainability index.

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

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

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

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

2027

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

EVENTS WITH NO SET DATE

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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