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Tuesday, 3 Jun 2025

What We're Tracking Today
Economy
Manufacturing
Capital Markets
Earnings Watch
Last Night’s Talk Shows
Egypt In The News
Also On Our Radar
Diplomacy
Planet Finance
Going Green
Calendar

Egypt’s economic rebalancing is well underway, but continued policy discipline is needed, says HSBC

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Today at a glance

1

Economy

What HSBC is telling its top multinational clients about the state of the economy.
2

Manufacturing

A USD 500 mn baby formula factory?
3

Capital markets

EGX30 outpaced KSA’s Tadawul and UAE’s ADX benchmarks in May.
4

LAST NIGHT’S TALK SHOWS

Kouchouk previews new export subsidy plan on the airwaves.
5

EARNINGS WATCH

CI Capital’s net income came in at EGP 381 mn during 1Q 2025.
6

Going Green

Could desert sand be the key to sustainable construction?

Tuesday, 3 Jun 2025

What We're Tracking Today
Economy
Manufacturing
Capital Markets
Earnings Watch
Last Night’s Talk Shows
Egypt In The News
Also On Our Radar
Diplomacy
Planet Finance
Going Green
Calendar
1

What We're Tracking Today

Could Egypt soon be home to an official Apple store?

Good morning, all. In today’s issue of EnterpriseAM Egypt, we’ve got insights from leading HSBC economists, a USD 500 mn project to localize the production of baby formula, a deep-dive into how the EGX30 fared in May, and more.

PSA-

#1- Banks will be off from Thursday, 5 June through Monday, 9 June in observance of Eid Al Adha, according to a statement from the Central Bank of Egypt. Private and public sector workers are also getting the same five-day break.

EnterpriseAM Egypt will also be taking a break from your inboxes for the Eid break, but we’ll be back bright and early on Tuesday with all the most important updates to keep you up to speed.

#2- The Housing Ministry has extended the deadline to apply for mid-income housing units under the Housing for All Egyptians 7 initiative to 18 June, Minister Sherif El Sherbiny said in a statement yesterday. The extension comes amid strong demand and citizen requests to keep the window open longer. You can head over to the Official Egyptian Real Estate Platform for information about available units, eligibility requirements, and required procedures.

WEATHER- We’re in store for another summery day in Cairo today, with a high of 31°C and a low of 20°C, according to our favorite weather app.

It’s a few degrees cooler in Alexandria, with a high of 27°C and a low of 19°C.

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

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

WATCH THIS SPACE-

Could Egypt soon be home to an official Apple store? Tech giant Apple wants to open an official Apple store in the country as part of plans to expand its presence in the local market, Hapi Journal quotes Apple's Director of Government Affairs for the Middle East and Pakistan Omar El Rifai as saying in a meeting with Investment Minister Hassan El Khatib. The company views Egypt as a gateway for its expansion into Africa and the Middle East, El Rifai said, highlighting the company’s continued commitment to developing call centers and training programs.

REMEMBER- The government has expressed interest in attracting Apple to establish a manufacturing presence in the country, with Prime Minister Moustafa Madbouly saying in May of last year that Egypt is working to get Apple to set up a factory here.

HAPPENING TODAY-

#1- Private sector activity health check, incoming: Policymakers, private sector players, and economists are eagerly awaiting S&P Global’s PMI figures for May that will be coming out shortly. April’s reading saw non-oil private sector activity decline further to 48.5 amid weaker consumer spending — marking Egypt’s lowest PMI reading in 2025 so far.

#2- It’s day two of Fi Africa andProPak MENA at the Egypt International Exhibition Center. The three-day annual conference (pdf) — which focuses on the food, beverage, and packaging industries — will bring together over 400 exhibitors from Egypt, the Middle East, Asia, and Europe, as well as over 16k attendees. It will feature talks and workshops for F&B and consumer goods manufacturers and showcase new technologies in a bid to promote potential investments and encourage sustainability and food waste reduction. You can register for the event through the link available on the Fi Africa and ProPak MENA websites.

FROM THE DEBT MARKETS-

The Central Bank of Egypt auctioned off USD 485 mn worth of USD-denominated one-year treasury bills yesterday, surpassing the targeted USD 450 mn, according to the bank’s website. The bills were sold with a yield of 4.25%, which has been the rate throughout 2025.

EGP-denominated t-bills were also offered up yesterday, with the auction raising EGP 58.8 bn — 15% above its EGP 50 bn target, according to data from the CBE’s website. Average yields fell 0.107 percentage points to 27.918% on three-month bills, while they rose 0.091 percentage points to 26.678% on nine-month bills.

IN CONTEXT- Investors have been demanding higher yields on short-term debt since the beginning of the CBE’s monetary easing cycle back in April, which has led to the Finance Ministry having to reject bids across a number of auctions and miss its targets. Meanwhile, investors are favoring long-term bonds following the cuts, in what is a positive development that helps extend the maturity profile of public debt, reduces annual interest payments, and stimulates the secondary market for public debt instruments, a government source told EnterpriseAM previously.

The end goal? The government aims to bring down the debt-to-GDP ratio to 80% by the end of June 2026 and to lower the external debt by USD 1-2 bn annually.

THE BIG STORY ABROAD-

Musk is still managing to still make the headlines after his step back from his chaotic foray into politics, with his xAI company looking to raise USD 5 bn in debt with a double digit interest rate to build out the company’s AI infrastructure. The company behind social media platform X and AI chatbot Grok is also selling USD 300 mn worth of stock in a tender offer that values the company at USD 113 bn. (Reuters | Financial Times | Bloomberg)

Also ranking high on the world’s digital front pages are peace talks between Russia and Ukraine that give little hope that the war could soon come to an end. A second round of direct talks between the two nations in Istanbul ended with both sides trading ultimatums and agreeing only on limited humanitarian measures that included a prisoner swap. Russia demanded Ukrainian withdrawal from four regions and neutrality guarantees, while Ukraine called for a full ceasefire, US oversight, and the return of abducted children — of which Russia agreed to release just 10 from a list that Ukraine claims reaches 400. (Reuters | Financial Times | Bloomberg)

Meanwhile, leading the Guardian is a report claiming that Israel’s deadly strikes on schools used as shelters are part of a deliberate strategy. The depressingly familiar reports of strikes on schools have become a hallmark of Israel’s assault on Gaza, with the UN detailing in a report last month that 406 schools have been struck with a direct hit during the 19 month-long war — accounting for 72% of all the enclave’s schools. (Guardian)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We look at how desert sand can help make Egypt’s construction sector more sustainable.

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On June 7th & 8th, take your front seat to Eid Magic – Somabay Edition.

LUMEN: A two-day experience by CJC is landing at Somabay, headlined by Oscar and The Wolf and Klangphonics.

Get ready for beachside beats, golden hour sets, and barefoot dancing in the sand — set against the breathtaking backdrop of Somabay’s crystal-clear waters and radiant sunsets.

This is more than a celebration. It’s where music meets magic on the shores of the Red Sea.

2

Economy

Egypt’s economic rebalancing is well underway, but continued policy discipline is needed, says HSBC

Geopolitical headwinds? Sure. But the picture ahead for Egypt is positive, HSBC’s CEEMEA top economist Simon Williams and global geopolitical risk chief Dr. Helen Belopolsky argued in a client briefing (pdf) at HSBC Egypt’s head office in Cairo last week.

Working in Egypt’s favor are political stability and a region increasingly awash with economic potential. Together, they’re putting Egypt in a position in which businesses can take advantage of a rapidly changing global and regional economy.

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

Our long road to rebalance and reset the economy is also showing early results, as “inflation is stabilizing, the currency is holding, the budget deficit is easing, and interest rates are starting to fall,” Williams said. This is opening up new possibilities for investors to take advantage of as liquidity improves and global trade looks for new routes, said the lender’s Egypt CEO Todd Wilcox.

And these new openings can in turn help the country overcome ongoing economic challenges, with Wilcox pointing out how the uptick in investor appetite for using Egypt as a manufacturing hub will support our export ambitions and lower FX risk.

We’re still not out of the woods yet, with Williams pointing to the very real threat posed by ongoing geopolitical risks with no predictable conclusion, energy production and supply concerns, and a fall in Suez Canal revenues — down some 60% y-o-y in 2024 to USD 7 bn. Keeping up the country’s commitment to fiscal discipline will be key to weathering future storms, explained Williams.

But volatility isn’t necessarily a bad thing for business, especially with Egypt midway through its reform agenda, said Belopolsky. Businesses can take advantage of a changing geopolitical climate, but only if they adapt and evolve to work with and not against the new and more volatile economic normal.

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3

Manufacturing

Mostakbal Misr to build USD 500 mn baby formula factory in partnership with the private sector

Efforts to localize infant formula production are getting serious: The Egyptian Armed Forces-linked Mostakbal Misr Agency for Sustainable Development is gearing up to build a USD 500 mn baby formula factory in partnership with the private sector, Asharq Business reports, citing the agency’s spokesperson Khaled Salah. Around 40k cows will need to be imported and 50k fedans of farmland for grazing crops planted to supply the factory with around 1 mn liters of milk a year, he added.

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

The game plan: The factory, which is set to come online in early 2027, will meet around 50% of local market demand by producing 40-45 mn packages in its first phase before scaling up to fulfill all domestic needs.

Cutting our import bill is a priority of the project: The move aims to slash imports of the product — which currently stand at around USD 1 bn annually — and follows recent calls by President Abdel Fattah El Sisi to establish a domestic factory to address “unreasonable” import levels.

Private players are interested: A number of local and Emirati private players have thrown their hats in the ring for the project, Salah said.

We had an idea that the state was interested in the project: The Trade Ministry said last week that the government is planning to establish a factory for baby formula production.

As things stand: There is a single baby formula plant in Egypt — Lacto Misr — whose productsare sold locally and abroad.

A similar project was previously shelved: The government had been in negotiations with an Australian company to set up the region’s largest formula factory, but negotiations fell through after studies found that the factory would add as a packaging plant, relying solely on imported materials, an unnamed official told Asharq.

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4

Capital markets

EGX30 outpaced KSA’s Tadawul and UAE’s ADX benchmarks in May

Egypt’s benchmark index EGX30 rose 1.8% last month, closing May at 32,697, according to the EGXmonthly report (pdf). The market cap of EGX30 stocks rose 0.2% during the month to EGP 1.3 tn.

A look at trading activity throughout the month: The total value traded declined 18.1% to EGP 1.1 tn. In contrast, the total volume traded increased 117%, reaching 57.8 bn securities. Equity trading accounted for only 9.1% of total value traded last month, while bonds and bills made up the remainder.

How the EGX fared against regional, int’l benchmarks: Tadawul’s benchmark index shed roughly 4.8% in May, its biggest monthly decline this year. Meanwhile, the Abu Dhabi Securities Exchange (ADX) benchmark rose 1.2%, and the Dubai Financial Market (DFM) benchmark gained 3.3%. Globally, the S&P 500 index rose 6.2%, the FTSE 100 jumped 3.3%, and the Euro Stoxx 600 rose 4.0%.

Real estate stocks were the most traded (excluding block trades): Real estate came on top in terms of value traded with EGP 19.4 bn worth of transactions, followed by NBFS (EGP 14 bn), food, beverages, and tobacco (EGP 7.2 bn), basic resources (EGP 6.5 bn), and banks (EGP 5.3 bn). Non-Egyptian investors were net sellers in the three most traded sectors.

Local investors dominated trading last month, making up around 86.6% of the value traded in listed stocks (excluding block trades). Foreign investors accounted for about 6.6%, while regional investors made up 6.8%. Regional investors were net sellers, offloading around EGP 2.8 bn. While retail investors led most of the action in the local and regional investors categories, institutional investors accounted for the bulk of the foreign investor transactions.

Snapshot of the YTD value traded breakdown by investor type: Since the beginning of the year, local investors represented 89% of the total value traded, foreign investors made up 5%, and regional investors accounted for the remaining 6%.

Foreign + regional investors showed confidence in our debt: Local institutional investors were net sellers on the debt capital market with EGP 95.4 bn in net sales, regional investors bought a net EGP 53.7 bn worth of bonds and bills, and foreign investors bought a net EGP 41.2 bn. Retail investors were all net buyers, snapping up a combined EGP 439.1 bn.

How other local indices fared: The EGX33 Shariah index rose 0.6% last month, and the Tamayuz index, which tracks the performance of small and medium-sized businesses, jumped 11.2%.

Listings + rights issues: May saw one listing of U Consumer Finance — which owns and operates the fintech giant Valu — and one rights issue by Premium Healthcare Group.

EFG Hermes’ brokerage arms led the EGX brokerage league table (pdf) in May with a combined 13.1% market share, followed by Arabeya (11.4%), Mubasher (7.1%), Thndr (6.3%), and Cairo Capital (6.0).

Looking ahead: EGX30 is poised for further growth during the summer, supported by recent interest rate cuts and reduced inflation, financial analyst Mohamed Al Najjar told us yesterday. He also highlighted the positive impact of raising the real estate tax exemption threshold, which could boost listed real estate firms and broader investor sentiment.

While real estate and non-banking financial services led recent market gains, Al Najjar believes industrial sectors will drive the next phase of growth. Al Najjar also criticized the lack of IPO activity on the exchange, noting that only one offering occurred since late 2024, compared to several in regional markets. He warned that summer IPOs may not gain traction and urged a focus on offerings in 3Q or early 2026 for stronger investor engagement.

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5

EARNINGS WATCH

CI Capital’s net income came in at EGP 381 mn during 1Q 2025

CI Capital Holding’s net income after tax and minority interest stood at EGP 381 mn in 1Q 2025, the company said in a statement (pdf). While the figure is down y-o-y, when factoring in the exceptional FX gains last year, net income is up 54% y-o-y. The firm’s corporate leasing arm Corplease’s net income after tax reached EGP 223 mn during the quarter.

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

The company’s total revenues came in at EGP 2.4 bn during the three-month period, marking a 35% y-o-y increase when excluding the impact of the foreign exchange. CI Mortgage Finance’s revenues rose 95% y-o-y to reach EGP 194 mn during the quarter, while CI Capital’s Investment Bank recorded EGP 387 mn in revenues. CI Capital Brokerage’s revenues came in at EGP 249 mn, and CI Capital Asset Management reported a 10% y-o-y increase in revenues, reaching EGP 88 mn.

The group’s total financing portfolio expanded to EGP 23.7 bn in the quarter, marking a 15% y-o-y increase. Corplease’s outstanding portfolio stood at EGP 17 bn, rising 14% y-o-y, and CI Mortgage Finance’s saw an 85% y-o-y increase in its outstanding portfolio, reaching EGP 2.5 bn. Meanwhile, Reefy's outstanding portfolio hit EGP 3.4 bn during the quarter.

What they said: “With a resilient and diversified portfolio paired with a leadership position within the Egyptian market, CI Capital will continue to navigate challenging market cycles, providing its investors with tailor-made, innovative financial solutions and offering excellence in everything we do,” Group CEO Hesham Gohar said.

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6

LAST NIGHT’S TALK SHOWS

Kouchouk previews new export subsidy plan on the airwaves

The upcoming export support program for the next fiscal year got some airtime on Lamees El Hadidi’s Kelma Akhira last night, with Finance Minister Ahmed Kouchouk phoning to give us a preview of some key features of the program before they’re formally announced in a presser later today (watch, runtime: 9:56). The new program will be fully funded and pre-allocated in the state budget — a step aimed at avoiding payment delays and ensuring exporters know subsidy values ahead of time, he explained.

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

Kouchouk said the three-year program was crafted in coordination with the Investment Ministry and all export councils, in a process he described as a “fully coordinated effort.” He added that the new framework will bring in more beneficiaries than previous iterations.

The minister gave us an insight into the IMF fifth review of our loan program, telling El Hadidi that negotiations are progressing “very well,” with a few final points currently under review. “We’re hopeful that the fifth disbursement will arrive with the start of the new fiscal year,” he said.

El Hadidi also congratulated Kouchouk on being named African Finance Minister of the Year by the African Leadership Magazine in their 2025 awards. “Business leaders and economic figures say you’ve made a revolution in finance and tax,” she said.

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7

EGYPT IN THE NEWS

Mostakbal Misr finds footing with global wheat suppliers after rocky start

Mostakbal Misr reportedly struck private deals in April to directly purchase 180k tons of French wheat from two top European traders — marking one of its first successful attempts to bypass local intermediaries and secure imports for the country’s bread subsidy program, two trading sources told the Reuters.

The newswire thinks this could be a sign that global suppliers are getting more comfortable with dealing with the new agency, which took over the General Authority for Supply Commodities’ long-held role as the agency in charge of importing commodities back in early 2024. Traders had reportedly hesitated to engage with the new agency due to its limited track record and lack of standard documentation.

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8

Also on our Radar

Beltone Leasing and Factoring sets up shop in SCZone. PLUS: EgyFert, Redcon Properties, Omar Effendi

FINANCIAL SERVICES-

Beltone Leasing and Factoring inaugurates SCZone branch: Beltone Holding’s Beltone Leasing and Factoring inaugurated a branch in the Suez Canal Economic Zone’s Sokhna Industrial Zone, according to a statement (pdf). The move “is part of SCZone’s broader strategy to establish an integrated financial infrastructure that keeps pace with the growing needs of industrial and logistics activities,” SCZone head Walid Gamal El Din said.

A first: “We are proud to be the first leasing and factoring company to begin operations within the SCZone to finance investors. This step opens new avenues for financing industrial projects and strategic export activities, thereby contributing to economic development and supporting national growth objectives,” Beltone Holding’s Deputy Head of NBFIs for Leasing, Factoring, and Consumer Finance Amir Ghannam said.

M&A-

EgyFert shareholders sell to Nas in partial response to MTO: Shareholders in EgyFert agreed to sell 1.8 mn shares to UAE-based Nas Investment Holding, following an MTO to acquire up to 57.5% of the company at EGP 102 per share, according to an EGX bulletin. The shares tendered represent 33% of the stake Nas was targeting, bringing its total holding in EgyFert to 51.4%, according to our calculations. Nas had sweetened the offer last week, raising it from EGP 95 per share. There’s no publicly available information about the minimum acceptance level.

ADVISORS- Nas enlisted Al Ahly Pharos as broker on the transaction, while MHR & Co and White & Case are providing counsel.

DEBT-

Redcon Properties secures EGP 4.2 bn in syndicated financing for its Golden Gate project: Real estate developer Redcon Properties has landed a EGP 4.2 bn syndicated loan to fund its Golden Gate commercial and administrative complex in New Cairo, according to a statement (pdf) from lead arranger FABMisr. The 3.5 year facility was oversubscribed by 1.2x, triggering a greenshoe option that bumped the loan up from an initial EGP 3.5 bn.

Who was involved: The syndicate also includes Al Baraka Bank Egypt, Abu Dhabi Commercial Bank, Arab Bank, and Emirates NBD Egypt. In addition to being the initial mandated lead arranger, FABMisr acted as the transaction’s bookrunner, facility agent, security agent, and account bank. Matouk Bassiouny & Hennawy provided legal counsel to the lenders.

What they said: “This collaboration reflects our growing confidence in the Egyptian market and in the ability of local companies to deliver transformative urban development projects aligned with sustainability goals,” said FABMisr CEO and Managing Director Mohammed Fayed.

HOSPITALITY-

Omar Effendi’s Heliopolis branch could soon be a hotel: Misr Hotels’ board approved plans to transform the Omar Effendi branch in El Hegaz from a commercial building into a four-star hotel, according to an EGX disclosure (pdf). A feasibility study covering financial, technical, and marketing considerations will be prepared. An engineering report will also be developed to assess the building’s structural suitability, along with a detailed implementation timeline.

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9

Diplomacy

Gaza tops the agenda of El Sisi’s talks with Macron, Iranian FM

El Sisi, Iranian FM discuss de-escalation and regional diplomacy: President Abdel Fattah El Sisi met with Iranian Foreign Minister Abbas Araghchi in Cairo yesterday, where the two sides discussed ways to boost ties and de-escalate rising tensions in the region, according to an Ittihadiya statement. El Sisi reiterated Egypt’s rejection of regional conflict spillovers and emphasized the need for a Gaza ceasefire and the restoration of maritime security in the Red Sea. Araghchi lauded Egypt’s stabilizing role and called for closer consultations going forward.

Nuclear concerns in the spotlight: The meeting came as a confidential IAEA report raised alarm over Iran’s expanding stockpile of uranium enriched to near weapons-grade levels, writes the Associated Press. IAEA chief Rafael Grossi, who was also in Cairo on the issue with Iranian and Egyptian officials, called for a diplomatic solution, while Iran pushed back on the report’s credibility and transparency in ongoing talks with the US. Iran’s top nuclear officials rejected suggestions of military intent, accusing the IAEA of political bias.

El Sisi, Macron talk Gaza, investments, and June peace summit: El Sisi received a phone call yesterday from French President Emmanuel Macron, during which the two leaders reaffirmed their strategic partnership and pledged to accelerate French investment flows into Egypt, according to a statement from Ittihadiya. Macron’s call followed his April visit to Cairo, where the two countries elevated their ties to strategic level. The call also covered Gaza, with El Sisi reiterating Egypt’s backing for the June peace conference in New York.

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10

PLANET FINANCE

PE hit a wall after a strong start this year with USD 1.2 tn in dry powder waiting to be deployed

The first half of the year has been a reality check for private equity, as tariffs, geopolitical volatility, and tighter liquidity reshape the playbook. The industry kicked off 2025 with momentum, but by April, trade tensions and policy shocks flipped the mood. PE dealmakers are still doing business — but they’re having to work a lot harder for it.

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

A strong start…until it wasn’t: The year began on a high note. Credit was flowing, inflation looked tamer, and interest rates were heading down. Deal-value hit its highest level since 2Q 2022.

But things changed fast: By early April, a fresh round of US tariffs sent markets wobbling. Transaction value in April fell 24% below the 1Q average, and dealcount dropped 22%, according to Bain and Company’s Private Equity Midyear Report 2025. IPOs all but froze with Swedish fintech Klarna in early April reportedly pausing its plans for a US IPO.

Liquidity is drying up, which is bad news for LPs — who want liquidity back — and GPs — who are trying to raise new money. Buyout funds are on track to avoid a sixth straight quarterly drop. Not a single buyout fund that closed in 1Q cracked USD 5 bn — a first in a decade. More than 18k funds are chasing USD 3.3 tn in capital. That’s USD 3 of demand for every USD 1 available. “Although the decline might have bottomed out, hope for a recovery in the inflows of fresh capital has likely been pushed out into 2026 (or beyond),” the report reads.

LPs are after real exits, even at markdowns. In a March poll, 60% said they’d prefer a traditional sale over alternatives even if it means taking a valuation hit.

Some 33% of LPs said they were slowing their private market investments in response to US tariffs, while 8% were pausing entirely, the report said, citing a survey by Campbell Lutyens in April. Some 28% of them are also looking to up their allocations to private credit, while 20% want to add more infrastructure positions to their portfolios, according to the same survey.

Secondary sales are one workaround: Chinese sovereign wealth fund China Investment Corporation is reportedly looking to offload USD 1 bn of US-managed PE assets. NYC pension systems just closed a USD 5 bn sale led by Blackstone. Meanwhile, secondaries still make up less than 5% of global PE AUM.

What’s next: There’s still USD 1.2 tn in dry powder waiting to be deployed — and GPs are under pressure to put it to work. With exits harder to come by, firms are doubling down on cost control, growth initiatives, and AI-led productivity to create value and prove their portfolios have legs.

MARKETS THIS MORNING-

In a reversal of fortunes, Asia-Pacific markets are in the green in early morning trading, following a positive close on Wall Street last night. Japan’s Nikkei, South Korea’s Kospi, the Hang Seng Index, and the S&P/ASX 200 are all trading up as markets begin to push through the chaos caused by the Trump administration’s tariff policies. Across the pond, futures indicate Wall Street will open in the red later today.

EGX30

32,325

-0.5% (YTD: +8.7%)

USD (CBE)

Buy 49.62

Sell 49.75

USD (CIB)

Buy 49.64

Sell 49.74

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

10,850

+0.2% (YTD: -9.9%)

ADX

9647

-0.4% (YTD: +2.4%)

DFM

5485

+0.1% (YTD: +6.3%)

S&P 500

5936

+0.4% (YTD: +0.9%)

FTSE 100

8774

+0.02% (YTD: +7.4%)

Euro Stoxx 50

5356

-0.2% (YTD: +9.4%)

Brent crude

USD 65.16

+0.8%

Natural gas (Nymex)

USD 3.75

+1.5%

Gold

USD 3406.20

+2.7%

BTC

USD 105,019.80

-0.5% (YTD: +12.3%)

S&P Egypt Sovereign Bond Index

EGP 875.67

+0.1% (YTD: +12.6%)

S&P MENA Bond & Sukuk

USD 143.56

+0.1% (YTD: +2.6%)

VIX (Volatility Index)

18.36

-1.1% (YTD: +5.8%)

THE CLOSING BELL-

The EGX30 fell 0.5% at today’s close on turnover of EGP 3.7 bn (21.8% below the 90-day average). International investors were the sole net buyers. The index is up 8.7% YTD.

In the green: Orascom Construction (+4.0%), ADIB (+3.5%), and Egyptalum (+3.0%).

In the red: Orascom Development (-3.2%), Emaar Misr (-3.0%), and GB Corp (-2.9%).

CORPORATE ACTIONS-

#1- FRA greenlights CPME’s capital increase: The Financial Regulatory Authority (FRA) gave impact investor Catalyst Partner’s SPAC Catalyst Partners Middle East (CPME) the green light to increase its authorized capital to EGP 14.0 bn from EGP 1.0 bn by issuing up to 280.5 mn shares, according to an EGX disclosure (pdf). The increase, which is yet to be approved by shareholders at the extraordinary general meeting, comes as CPME prepares for its acquisition of majority stakes in digital lending marketplace Qardy and Catalyst Partners Holding through share swaps.

#2- U files for a capital increase: U Consumer Finance — which owns and operates the Valu brand — has applied for a capital increase, which would take its authorized capital to EGP 1.05 bn, up from EGP 750 mn, and its issued capital to EGP 210.6 mn, up from 199.6 mn, according to an EGX bulletin (pdf).

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Our weekly deep dive into the green economy and ESG issue in Egypt.

Published every Tuesday in EnterpriseAM.

Read going Green
11

Going Green

Could desert sand be the key to sustainable construction?

Can Egypt build with desert sand? Egypt’s construction sector is under pressure to slash its carbon emissions, and the country’s abundance of desert sand could be the key to greenify the sector that contributes a substantial part of the country’s GDP, according to a research paper by Future University in Egypt’s Assistant Professor of Architectural Engineering Dina Khater. The paper explores how the country’s desert sand supply could replace carbon-intensive building staples like Portland cement and clay bricks, assessing its potential as a green building material.

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

The building materials sector is one of Egypt’s biggest carbon emitters. Cement production alone accounts for around 14% of the country’s CO2 emissions, which is twice the global average. Much of this is driven by energy-intensive processes and heavy reliance on coal and petcoke, both of which are heavy carbon emitters.

Why it matters? “Nearly 96% of Egypt is undeveloped desert territory, and rapid population growth has made metropolitan centers denser. This highlights the need for prioritizing sand as a locally accessible sustainable resource for future urban development,” the paper argues.

Why sand? Sand is among the most available materials in Egypt, with deserts making up most of the country’s land, according to the paper, and is among the most underutilized resources. Specific types of Egyptian desert sand, especially quartz (also known as silica sand) and feldspar sand, could be used in construction once stabilized or compacted.

One method is bio-cementation, which could offer a greener way to stabilize weak ground. Researchers are exploring how to use natural processes to strengthen sandy soils by accelerating the formation of calcite, which is the mineral that cements sand into sandstone over time, according to a study by Professor Michael Long at University College Dublin’s School of Civil Engineering. Injecting bacteria or enzymes into sand that contains calcite triggers a reaction that produces calcium carbonate, which binds the grains together. This process could create stronger, more stable ground for construction without the carbon footprint of traditional cement or compaction methods.

A successful example: A research team from October University for Modern Sciences and Arts developed sand Lego-like bricks pressed from local sandy soil, which were then used to build a one-story structure without any burning. The bricks proved to be more climate friendly than traditional clay bricks. The structure was sturdy, good at isolation, and the bricks were half as costly as other materials.

And another: Builders in Siwa Oasis are combining traditional construction methods using karshif — a stone found by the Salt Lake in Siwa — to create cost-effective and climate-resilient buildings. Karshif, combined with other natural materials — silt, palm wood, and natural stone — can create strong, long-lasting structures.

AAC blocks are also an alternative: Sand can also be used to create autoclaved aerated concrete (AAC) blocks — also known as light white blocks. The blocks are lightweight and energy-efficient materials made from sand, cement, lime, and gypsum, and then cured with electric-powered autoclaving rather than burning. AAC blocks have several advantages including their ability to reduce a building’s energy consumption, as doubling AAC block and reflective glass in a structure can reduce energy use by up to 25% in residential and commercial buildings. These blocks are more costly than traditional bricks, but in the long term save energy and are fire resistant.

What’s the catch? There are challenges to using desert sand in construction including the lack of a regulatory framework for sand-based alternatives as many contractors and developers still stick to the familiar and tested options like clay bricks and standard cement. Desert sand is also too fine and smooth to use in construction, so without the right mix or stabilization techniques, structures would lose their strength and durability, according to an article by real estate developer Wegraz.

What’s next? “To standardize locally recognized criteria, the researcher underlines the necessity of further experimental investigations especially including Egyptian sand and regulatory actions that help to integrate masonry and sandbased concrete. The research supports the adoption of Lego-inspired building methods, modular and sustainable sand-based building materials, to enable quick and environmentally friendly urban growth,” the paper concludes.

Your top green economy stories for the week:

  • Localizing seed production: The Agriculture Ministry is in negotiations with several French and Italian companies to establish vegetable seed production projects in Egypt to stop relying on imports. (Al Borsa)
  • Egypt’s first green city: Sharm El Sheikh became the first Egyptian city to join the Local Governments for Sustainability’s global network of sustainable cities. (Statement)
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CALENDAR

JUNE

2-4 June (Monday-Wednesday): Manufacturing and packaging forum ProPak MENA and Fi Africa 2025, Egypt International Exhibition Centre.

3 June (Tuesday): S&P Global to release PMI data for May recording non-oil private sector activity

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

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

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

Realme to open smartphone factory

IFC President Makhtar Diop to visit Egypt

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

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

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

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

DECEMBER

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

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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

2Q 2025: Safaga Terminal 2 to start operations

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.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

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

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

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