Emergency Arab League summit on Gaza delayed

Wednesday, 19 Feb 2025

Emergency Arab League summit on Gaza delayed

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Today at a glance

Diplomacy

Arab League summit on Gaza pushed back.

M&A WATCH

Dubai’s Dubizzle acquires Hatla2ee.

Customs

Gov’t is working to finalize a raft of additional customs facilities.

REGULATION WATCH

FRA introduces fresh regulations aimed at boosting SPAC activity.

EARNINGS WATCH

CIB’s net income surges 78% y-o-y in 4Q 2024.

Also on our Radar

Adnoc wants to expand its Egyptian aviation fuel services.

What We're Tracking Today

Egypt to rent another floating regasification unit from Cyprus?

PLANET FINANCE

The S&P 500 hits fresh high.

HARDHAT

The key themes shaping the construction sphere this year.

What We're Tracking Today

Egypt to rent another floating regasification unit from Cyprus?

Good morning, all. We have another busy issue for you this morning with the news flow showing no signs of slowing down.

PSA-

You can now book train tickets through the Egyptian National Railways’ new 24/7hotline. To reserve or make inquiries, call 1661 from a mobile phone, or 09000661 on a landline. Payments also can be made through Fawry, with more payment options in the pipeline.

WEATHER- It’s another sunny day in Cairo, with a high of 22°C and a low of 13°C, according to our favorite weather app.

It’s a little colder in Alexandria, with a high of 19°C and a low of 12°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-

#1- Twenty German companies are planning to invest in Egypt’s manufacturing sector, a high-ranking government source told EnterpriseAM. A delegation of the companies met with government officials last week to discuss the proposed investments that include projects in the auto feeder industry and electrical engineering.

The pull? Cheaper energy and lower taxes than in Germany is what persuaded the companies to consider setting up shop in Egypt, according to the source.

#2- Egypt will ink an agreement to rent a floating regasification unit from Cyprus next month, with the ship, which will have a daily processing capacity of 500 mn cubic feet per day (mcf/d), set to dock in Egypt to cover high energy demand in the summer months, Asharq Business reports citing an unnamed government official.

That makes five: Egypt reportedly chartered a third floating storage regasification unit to process LNG imports to dock at Ain Sokhna by June 2025 and a fourth unit from Turkey to dock for the duration of the summer.

DATA POINT-

Gold prices hit an all time high: The price of 24 karat gold surged to EGP 4,714 per gram and 21 karat gold rose to EGP 4,125 per gram yesterday, which gold trading platform iSagha CEO Saied Embaby attributed to heightened demand as people look to the precious metal as a hedge amid ongoing geopolitical uncertainty.

HAPPENING TODAY-

It's the closing day of the Egypt Energy Show, where private and public energy players from around the world have gathered at the Egypt International Exhibition Center in Cairo. The three-day event — coming this year under the theme of Building a Secure and Sustainable Energy Future — brings together 47k visitors, features 300 speakers, and hosts more than 500 participating companies.

HAPPENING TOMORROW-

#1- Will tomorrow be the day the Central Bank of Egypt starts cutting rates? The central bank’s Monetary Policy Committee will meet tomorrow to decide on whether to kick off the year with an interest rate cut after having kept rates stable since its March hike that coincided with the float of the EGP.

Analysts are split on which way the committee will go, with some telling us in our customary interest rate poll that they expect the bank to cut interest rates by 100-200 basis points (bps) on the back of a strong positive base effect and slowing inflation. While others believe that the recent inflation data will prompt the bank to wait until the next time the committee meets in April.

#2- Egypt-Switzerland economic cooperation is on the agenda tomorrow at the online event Innovate Together: Business Opportunities Between Egypt and Switzerland, organized by the Egyptian-Swiss Business Circle and Switzerland-based Kickstart Innovation. The event will gather startups, investors, and public and private players from both nations to explore potential business prospects between the two countries.

THE BIG STORY ABROAD-

Talks on the Russia-Ukraine war held in Riyadh are in the spotlight this morning, as senior delegates from the US and Russia agreed to start laying the groundwork for an agreement that ends the war.

Saudi Arabia hosted talks between senior US and Russian officials yesterday, spearheaded by US Secretary of State Marco Rubio and Russian Foreign Minister Sergei Lavrov. The two sides agreed to chart a way towards normalizing their diplomatic missions and ending the Ukraine war.

Europe is trying to catch up: The EU — notably missing from the talks — is set to join the table “at some point” to iron out details regarding sanctions on Russia, Rubio said.

Ukraine is not on board: “Nobody decides anything behind our back,” Ukrainian President Volodymyr Zelensky said in a press conference after the US-Russia meeting was concluded. Zelensky, who was due in Saudi today for a separate trip, postponed his visit to the Kingdom in a move to avoid “any coincidences.” US President Donald Trump signaled he wants to see elections in Ukraine once the war ends, and said that Ukraine’s leadership “allowed a war to go on that should have never happened.” (Reuters | Associated Press | EC | Semafor | FT)

MEANWHILE IN GAZA- Israel confirmed negotiations on the second phase of the ceasefire agreement will begin this week, after securing an agreement in Cairo that will see Hamas release six living captives instead of three next Saturday. Israeli Foreign Minister Gideon Saar said Israel will reject any arrangements that do not involve disarming Hamas and all other factions, adding that rule in Gaza will not be transferred to the Palestinian Authority. (Bloomberg | Reuters)

*** 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 BMI’s key themes shaping the construction sphere this year.

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oil and gas What We're Tracking Today

Somabay at ITB 2025: A Destination for Every Traveler

Somabay is making a splash at ITB 2025, bringing its diverse hotel offerings to the global stage. From serene wellness retreats and action-packed adventures to family-friendly escapes and refined seaside stays, our world-class resorts cater to every kind of traveler. Set against the breathtaking backdrop of the Red Sea, Somabay promises unforgettable experiences tailored to your journey. Visit our stand 317 at Hall 6.2 B to discover bespoke stays, exclusive experiences, and the essence of Somabay hospitality.

Diplomacy

Arab League summit on Gaza pushed back

Emergency Arab League summit pushed back to 4 March: Egypt will host the emergency Arab League summit to unify the Arab stance against the calls for displacement of Gazans on 4 March, according to a Foreign Ministry statement. The summit had originally been scheduled for 27 February before being delayed.

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

LEADING UP TO IT- President Abdel Fattah El Sisi is reportedly heading to Riyadh tomorrow to take part in talks — with Saudi, Jordanian, Emirati, and Qatari leaders — that are expected to set the stage for the summit, Reuters reports citing unnamed Egyptian sources.

On the agenda: Egypt will reportedly present its reconstruction plan for Gaza at the meeting. Two key elements of the plan include: excluding Hamas from governing Gaza and ensuring reconstruction happens without displacing the residents of Gaza.

Remember: Last week Egypt said it will propose “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.”

BEFORE THAT- El Sisi is in Madrid where he will be taking part in high-level meetings and partaking in talks with the Spanish business community and companies. The president landed yesterday and already held meetings with Spanish shipbuilder Navantia ’s chairman to discuss cooperation in shipbuilding, marine industries, and renewable energy, as well as the Chairman of hospitality giant Barceló Group to discuss investments in Egypt’s tourism sector.

We know Barceló is interested in the local market: The company is in negotiations to acquire and participate in several projects in Egypt. Barceló is interested in projects in Cairo, Sharm El Sheikh, Hurghada, and Marsa Alam and has an “ambitious investment plan” for the local market.

Also to come: Egypt and Spain will upgrade their relationship to a strategic partnership during El Sisi’s visit, they will also sign a number of MoUs covering a variety of sectors.

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DIPLOMACY Gaza Middle East politics

M&A WATCH

Dubai’s Dubizzle acquires Egyptian car marketplace Hatla2ee

Dubai-based classifieds giant DubizzleGroup took over homegrown online car marketplace Hatla2ee, according to a statement (pdf). The move will see Dubizzle fold Hatla2ee’s platform into its operations in Egypt — which already include Dubizzle and Bayut — thereby expanding its footprint in the country’s fast-growing automotive market and digital classifieds scene.

What we don’t know: The financial terms of the takeover and post-acquisition leadership lineup were not disclosed.

What they said: “Dubizzle Group has already built a strong presence in Egypt … Adding Hatla2ee to our portfolio means we can now offer Egyptian consumers the widest range of automotive services with the power of our cutting-edge technology,” Dubizzle Egypt CEO Haroon Rashid said.

A win-win for both sides: The agreement is set to boost Dubizzle’s reach in a market where online automotive sales are gaining traction, positioning it to compete with local and regional players. Hatla2ee CEO Samy Swellam said joining Dubizzle offers the company access to advanced technology and will allow it to create a better experience for its users.

About Hatla2ee: Founded in 2016, Hatla2ee has become one of Egypt’s leading platforms for new and used car sales, amassing over 2 mn monthly visitors on its website and mobile application.

** Want more? Swellam was our Founder of the Week back in 2022.

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Hatla2ee M&A Watch startups

Customs

Egypt is working to finalize a raft of additional customs facilities

Gov’t works to finalize a raft of customs facilitations: The Madbouly government is currently preparing a list of facilitations on customs duties, as part of larger efforts to streamline Egypt’s customs system and facilitate local manufacturing efforts, a government source told EnterpriseAM.

What we know: The measures are being taken to push the government’s localization efforts forward, with the investment and industry ministries holding meetings to discuss requests submitted regarding distortions in the customs tariff that create advantages to imported goods ahead over locally produced alternatives, our source said. The government could move to reduce customs duties on inputs for certain industries to increase value added, push localization efforts forward, and create opportunities for feeder industries to grow rather than rely on imports, the source added.

The government is also looking to ease the Authorized Economic Operator (AEO) program’s membership conditions, in what would be an additional step towards facilitating customs clearance, our source said, explaining that the system currently requires specific transaction volumes and the submission of three financial statements in order for companies to join.

The government is working on a number of other ways of facilitating customs, including efforts to launch the first call center for the ECA, electronically link data with the Egyptian Tax Authority to expedite data verifications, improving issues related to duty drawback, temporary admission, and pre-release procedures for shipments — all while reducing the number of customs inspection authorities — currently 22 — to be limited to the relevant authorities based on the nature of the product, our source said.

Remember: The cabinet also recently approved a proposal from the finance and investment ministries to improve the process of exporting and importing goods in a bid to cut customs clearance time down from eight days to just two.

This would come on top of a number of newly-announced measures:

The launch of a new unified platform for the prices of the most frequently imported goods, which will help eliminate arbitrary assessments across customs ports;
Allowing the payment of custom taxes on inputs in six-month installments of up to six months, without late penalties for the first three months;
Allowing manufacturers a production material waste rate of up to 3%, which will benefit producers working in freezones and special economic zones and help resolve cases filed against manufacturers by the Industrial Control Authority;
Only collecting customs duties through the Nafeza platform upon the arrival of goods, easing financial burdens on manufacturers;
Allowing manufacturers to use ins. documents as a guarantee to provide the Egyptian Customs Authority (ECA);
Unifying the requirements of the ECA and the General Organization for Export and Import Control (GOEIC), which will help reduce customs clearance time — resolving one of the main disputes among manufacturers;
Allowing e-payments across different payment methods and platforms, representing a step forward for the digital transformation;
Updating the Authority’s risk management system, with the aim of making it easier to reclassify shipments from being “under reservation” to being classified as production inputs — provided their safety is verified.

ICYMI- Deputy Finance Minister for Tax Policies Sherif El Kilani told EnterpriseAM late last year that the government is revisiting customs procedures to align with global standards and improve efficiency. This includes a plan to introduce a four-tier system — green, red, blue, and orange — for importers, allowing for faster clearance for compliant businesses.

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customs

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REGULATION WATCH

Egypt introduces fresh regulations aimed at boosting SPAC activity

FRA takes steps towards boosting SPAC activity: The Financial Regulatory Authority (FRA) introduced amendments to the regulations governing SPACs, in addition to new rules for mergers as well as delisting procedures.

A REGULATORY MAKEOVER FOR SPACS-

New SPAC regulations: The FRA revised regulations related to SPACs, allowing them to merge, swap shares, or acquire credit balances of their target company. Once an acquisition is completed, the SPAC shares will be tradable at fair value, provided that the listing requirements are met.

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

Post acquisition: The SPAC can start trading after publishing its semi-annual financial report six months after the acquisition is completed. The report must reflect a net income of no less than 5% and a shareholders’ equity above its paid-up capital. Previously, a SPAC had to wait until submitting its annual financial report two years post-acquisition before its shares could be publicly traded.

The rationale: The move aims to diversify the acquisition options for a SPAC and ensure transparency and fairness when determining its share price.

Opening the trading floor for all: The regulatory changes open SPAC trading to retail investors — SPAC trading was previously open only to qualified investors.

Relaxing the rules: The amendments relax previous regulations that require founders and board members to hold on to their combined 51% share in the SPAC following a capital increase or acquisition. They also allow investors who subscribe to the capital increase to freely trade their new shares without restrictions.

The fine print: Following a merger — if the SPAC merged with a listed company — some 51% of the shares of subscribing shareholders will be frozen for no less than 12 months if the acquired company’s fair value exceeds the listed company’s market value to ensure stability.

The second update to SPAC rules in less than a year: The FRA updated its rules governing the listing and delisting of the acquisition vehicles on the Egyptian bourse last July. Under the regulations, SPACs must apply to list on the EGX within one month of obtaining their license from the FRA, or it will be considered invalid. They need a minimum issued and paid-up capital of EGP 10 mn which must be increased to EGP 100 mn within three months of listing on the EGX.

Remember: Egypt’s first SPAC — Impact investor Catalyst Partners’ Catalyst Partners Middle East (CPME) — made its EGX debut last November.

What’s a SPAC again? A special purpose acquisition company is a type of shell company used by investors to acquire firms. SPACs raise money from the public in an IPO and then use the proceeds to merge with or acquire an appropriate company. Check out our explainer for more on how SPACs work.

FRESH RULES FOR MERGERS-

If the merger of an EGX-listed company results in a capital increase that causes the company to fail to meet listing requirements, it must rectify the situation within six months to maintain compliance.

For further control and stability post-merger, investors subscribing to the capital increase of a listed company must hold onto their newly acquired shares for at least one fiscal year under the new regulation, until the company publishes audited financial statements demonstrating compliance with profitability and equity requirements.

STRONGER SAFEGUARDS FOR MINORITY SHAREHOLDERS IN DELISTINGS-

No monopoly over delisting decisions: The FRA amended regulations governing the voluntary delisting of shares to bolster minority shareholder rights and align local regulations with global best practices. Under the new rules, delisting decisions must now be approved by 75% of the general assembly, provided that the majority of minority shareholders (those unaffiliated with the majority owner) also approve the delisting. The FRA emphasized that the new requirements ensure equal treatment of all stakeholders, preventing controlling shareholders from unilaterally forcing a delisting.

Shareholders get the final say on delistings: Another key regulatory change the FRA introduced revokes the ability of a company’s board to unilaterally decide to delist shares in cases where 75% of a company's shares were acquired through a tender offer. Instead, the decision must be made by the general assembly. The FRA argues that this amendment balances power between controlling and minority shareholders, ensuring greater fairness in corporate governance.

Buybacks now have new mechanisms: The new delisting regulations require that minority shareholders looking to exit be offered the highest valuation between three key benchmarks:

The highest closing price of the stock during the month preceding the board’s decision to call the assembly;
The average closing price of the company’s shares over the three months prior to the board’s decision;
A fair value assessment conducted by an independent financial advisor approved by the FRA.

The fair value study must be published at least 15 days before the shareholder vote, ensuring transparency and giving minority investors ample time to assess their options.

The FRA also streamlined the delisting process, requiring companies to submit delisting documents to the EGX within five business days of the assembly’s decision. The delisting itself must be fully completed within 20 business days after all required documents are submitted to the exchange.

New oversight for employee incentive and reward programs: The regulations also transferred regulatory oversight of employee incentive programs to the FRA from the EGX. Moving forward, companies must submit disclosure reports to the FRA within two business days before calling a general assembly to approve the incentive plan.

Tags:

Financial Markets Financial Regulatory Authority regulation watch

A MESSAGE FROM VODAFONE

Enriching lives everyday through technology

Whether it is empowering people, promoting environmental sustainability, or championing inclusion, Vodafone Egypt is all about utilizing technology for community advancement. The recently published 2024 Sustainability Report, covering the period from March 2023 to April 2024, highlights Vodafone’s conscious endeavors to leverage its impact across key areas, from rural connectivity, financial inclusion, health, to education, accessibility, and environmental sustainability.

Here are some key highlights from the 2024 Sustainability Report:

Closing the digital divide. With a firm belief that everyone deserves to stay connected, Vodafone Egypt has built over 4k rural sites, while introducing around 200k affordable 4G devices, to ensure more people have constant access to the digital world.

Driving financial inclusion – Vodafone’s got you covered. Through Vodafone Cash, digital financial services are now accessible to more people than ever. Today, over 20 mn wallet holders benefit from secure and convenient financial solutions.

Redefining education through technology. As Vodafone Egypt believes that there is more to life than today, its Ta3limy online platform has provided quality education to over 2.5 mn beneficiaries, offering new learning opportunities and increasing access to knowledge.

Championing accessibility. Vodafone Egypt’s Deaf and Hard-of-Hearing Call Centre has facilitated 35k requests, ensuring continued support for its customers and reinforcing the company’s dedication to inclusivity and accessibility.

Creating a more sustainable future. Environmental sustainability remains central to Vodafone Egypt’s operations, with a 1.8-mn-liter reduction in diesel consumption, and 54% y-o-y decrease in Scope 1 & 2 emissions, the company has continued moving closer to its Net Zero goal by 2035.

Fostering an inclusive workplace. With women holding 32% of leadership roles, Vodafone Egypt continues to champion an inclusive workplace, by prioritizing gender equity and embracing diversity across all organizational levels.

Investing in a future-ready workforce. Vodafone Egypt’s commitment to talent development is reflected in an EGP 25.5 mn investment in skill-building programs, equipping teams with the expertise needed to lead and innovate in an evolving digital landscape.

Don’t miss out — watch the video to see how Vodafone Egypt is driving positive change.

Tags:

A MESSAGE FROM VODAFONE Vodafone Egypt

EARNINGS WATCH

CIB’s net income surges 78% y-o-y in 4Q 2024

CIB wrapped up 2024 “on a high note:” The lender saw its net income surge 78% y-o-y to EGP 12.8 bn during 4Q 2024, according to a press release (pdf). The bank saw its revenues climb 57% y-o-y to EGP 27 bn 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 details: The bank’s net interest income grew 67% y-o-y during the three-month period to EGP 25.4 bn while non-interest income dropped 17% y-o-y to EGP 1.6 bn.

For the full year: CIB posted a net income of EGP 55.2 bn, marking a 86% y-o-y increase, while revenues jumped 68% y-o-y to EGP 99 bn on the back of a 72% y-o-y increase in net interest income and a 34% y-o-y increase in non-interest income. The bank also saw its gross loan portfolio increase 50% y-o-y during the year, recording EGP 399 bn, while its deposits were up 43% y-o-y to EGP 968 bn.

What they said: “CIB ended 2024 on a high note, achieving another milestone in financial performance, reiterating its leading market position in terms of both profitability and solvency through the year, while remaining committed to elevate the overall customer banking experience,” the bank’s management said.

Tags:

banking CIB earnings earnings watch

LAST NIGHT’S TALK SHOWS

The delay of the Arab League summit dominate the airwaves

The delay of the emergency Arab League summit was the main talking point on the airwaves last night. Kelma Akhira’s Lamees El Hadidi (watch, runtime: 12:27) said that the delay followed mediation by Egypt and Qatar, leading to an agreement with Hamas to release four detainees' bodies on Thursday and six detainees alive on Saturday.

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

Egypt’s Gaza reconstruction plan is in motion: Heavy equipment and mobile homes have entered Gaza as Egypt begins clearing rubble and rebuilding infrastructure. El Hadidi said the machinery is already working to clear the road leading to the Kerem Shalom crossing to facilitate aid entry. “Egypt is pushing ahead with reconstruction, ensuring Gazans are part of rebuilding their homeland,” she added. “We won’t wait for summit outcomes — this is a matter of national security for Egypt.”

Al Hayah Al Youm also had the story (watch, runtime: 1:39 | 7:54).

Want the details? We have the full story in the news well, above.

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Gaza LAST NIGHT’S TALK SHOWS Middle East politics

Also on our Radar

Adnoc wants to expand its Egyptian aviation fuel services

ENERGY-

#1- Adnoc Distribution plans to expand its aviation fuel services in Egypt beyond its existing presence at Cairo and Marsa Allam airports, company’s CEO Bader Al Lamki told EnterpriseAM at the Egypt Energy Show. The company is looking to expand into the Alamein Airport, he added, explaining that it is looking to invest up to USD 300 mn to expand its presence in Egypt, KSA, and the UAE this year.

Also in the pipeline: The company is looking to enter Egypt’s EV charging market and is currently working to secure the necessary licenses, he said. It is also planning to open its first integrated service station in New Cairo, set to be the largest in the country, and is looking into setting up new fuel station locations in the new capital and the North Coast.

ICYMI: Adnoc Distribution entered the Egyptian market two years ago after acquiring a 50% stake in TotalEnergies Egypt. The company currently operates 240 retail fuel sites across the nation.

#2- Joint Egyptian-Greek carbon capture projects incoming? The Oil Ministry signed an MoU with Greece’s Environment and Energy Ministry to collaborate on carbon capture, storage, and utilization — known in the business as CCUS — according to a statement. The pair will work on proposals for a carbon capture and storage regulatory framework with support from Greece’s industry knowledge and develop models for its possible application within the economy. Egypt also hopes to begin exporting carbon dioxide to European markets for industrial use.

Carbon capture? CCUS traps CO2 that is released by factories and power plants, preventing it from reaching the atmosphere. The captured CO2 can either be used in the production of fuels, chemicals, concrete, and other materials — or it can be stored deep in the earth. Carbon capture makes it possible to make polluting industries a little less polluting and opens up potential additional revenue streams, but it’s a new technology that is still expensive. It’s yet to really be a thing in Egypt, but interest is growing.

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ADNOC ALSO ON OUR RADAR energy

PLANET FINANCE

The S&P 500 hits fresh high

Tuesday was a good day for global markets, with both the S&P 500 and the Euro Stoxx 600 closing at all-time highs following a turbulent few weeks triggered by US President Donald Trump introducing new tariffs. The benchmark S&P 500 closed up 0.2% at a record 6,130 and the Euro Stoxx 600 closed at 558.

The rationale: “I think people are still trying to digest everything going on with not only tariffs and how that could impact things but also general valuations … We feel like the market is pretty expensive,” Villere & Co’s Sandy Villere told Reuters.

Investors are keeping an eye out for: The Federal Reserve’s next move. The odds of a rate cut took another hit after inflation came in hotter than expected in January, with the consumer price index rising 3% y-o-y, the highest increase since June.

“You've got not only the tariff situation, which I think is going to be more sabre-rattling and negotiating than anything long-term; the other thing is inflation that could be a little more stubborn than people think and I don't think the Fed can cut interest rates as fast as originally expected,” Villere added.

What about European markets? It wasn’t just the pan-European index that hit a fresh record yesterday, German’s benchmark index also hit a new record high after rising 0.2% — banking and defence stocks drove the rally, Reuters writes, adding that investors are hopeful peace talks between Russia and Ukraine will likely increase military spending.

MARKETS THIS MORNING-

It’s another morning with Asian markets mixed in early trading — Japan’s Nikkei is down 0.4%, the Hang Seng is down 0.4%, meanwhile the Kospi is looking at gains of 1.8% and the Shanghai Composite is up 0.5%.

EGX30	30,588	+0.5% (YTD: +2.9%)
USD (CBE)	Buy 50.59	Sell 50.73
USD (CIB)	Buy 50.59	Sell 50.69
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,334	+0.6% (YTD: +2.5%)
ADX	9,619	+0.7% (YTD: +2.1%)
DFM	5,375	-0.2% (YTD: +4.2%)
S&P 500	6,130	+0.2% (YTD: +4.2%)
FTSE 100	8,767	0.0% (YTD: +7.3%)
Euro Stoxx 50	5,534	+0.3% (YTD: +13.0%)
Brent crude	USD 75.82	+0.8%
Natural gas (Nymex)	USD 4.01	+7.6%
Gold	USD 2,955	+1.9%
BTC	USD 94,942	-1.6% (YTD: +1.5%)

THE CLOSING BELL-

The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 3.8 bn (4.8% above the 90-day average). International investors were the sole net sellers. The index is up 2.9% YTD.

In the green: EFG Holding (+4.5%), Telecom Egypt (+4.2%), and Egypt Kuwait Holding -EGP (+4.2%).

In the red: EgyptAlum (-2.1%), GB Corp (-1.3%), and Oriental Weavers (-1.0%).

CORPORATE ACTIONS-

That’s a wrap on Beltone’s acquisition of Sodic for Securitization: Our friends at Beltone Holding finalized an EGP 8.6 mn acquisition of Sodic’s securitization arm, Sodic for Securitization, according to a disclosure (pdf) to the EGX.

REFRESHER- Sodic for Securitization announced last March that it would offload all of its shares to Beltone Financial Holding after its general assembly approved the decision.

Tags:

Financial Markets Planet Finance

HARDHAT

The key themes shaping the construction sphere this year

BMI is cautiously optimistic that the global construction industry is set for expansion in 2025, driven by expected global monetary easing cycles and renewed private sector investment, Fitch Solutions’ research unit said in its Infrastructure Key Themes for 2025 webinar. But US President Donald Trump’s return to the White House, geopolitical risks in our part of the world, and fiscal tightening across emerging markets could push the industry in new directions. Fitch’s research team outlined five key themes shaping the year ahead.

#1- BMI expects the global construction industry to expand by 2.7% y-o-y in 2025, a slight slowdown from 3.2% in 2023 but in line with the sector’s long-term growth trajectory. While monetary easing should provide relief after years of tight financing conditions, weaker public spending — especially in emerging markets — could dampen momentum. High debt levels and fiscal consolidation efforts are likely to limit government-backed infrastructure projects, shifting the burden onto private investors. Despite these headwinds, BMI projects industry growth to remain above the past decade’s average of 2.6% y-o-y.

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

Asia leads, Latin America lags: The Asia-Pacific region will continue to be the biggest growth driver, expanding at 4.2% y-o-y, while MENA and Sub-Saharan Africa will both see growth tick up to 3.8% y-o-y. The biggest underperformer? Latin America, which is expected to contract by 2.2%, weighed down by slowing public investment.

REMEMBER- Egypt’s infrastructure bill was capped at EGP 1 tn for FY 2024-25 at the IMF’s behest to rein in spending, shifting priorities toward near-complete national projects over new developments. Urban development (EGP 186 bn), oil and gas (EGP 136 bn), and ICT (EGP 85 bn) lead the agenda, while the government pushes to localize industries to save USD 3 bn in imports and increase exports by 20%.

Egyptian construction and real estate players are looking to foreign markets as domestic opportunities dry up. With public projects slowing at home, firms are turning to regional markets with strong demand and government-backed infrastructure spending. Gulf countries and post-conflict nations like Iraq and Libya are proving particularly attractive, but fierce competition, financing hurdles, and regulatory challenges remain obstacles. While Egyptian firms have the expertise and scale to compete internationally, securing funding—especially USD-denominated letters of guarantee — has emerged as a key barrier.

#2- Global monetary loosening is expected to spur private investment in construction, offering much-needed relief after four years of restricted financing, BMI projects. Interest rates are projected to fall to 3.5% in the US, 3.75% in the UK, and 2% in the eurozone, supporting infrastructure activity in 2025 and beyond. This “will lead contractors to commence new construction work, facilitate infrastructure asset owners in raising capital, and spur greater infrastructure transaction activity,” the report reads.

The immediate impact of lower interest rates will be felt in residential construction, as easier financing boosts both developers and homebuyers, BMI projects. Broader infrastructure investment will take longer to gain traction — likely after 2025 — given the lag between financing decisions and project execution. While monetary easing should stimulate construction activity, its full impact hinges on threats to economic stability and inflation risks, which could slow the pace of rate cuts.

Egypt’s sticky inflation and tight monetary policy have kept interest rates at record highs, with the overnight deposit rate standing at 27.25%. While inflation has been easing for three consecutive months, concerns over external pressures, FX stability, and geopolitical risks have kept the CBE’s unwinding of high interest rates on hold since its 600-bps hike in March 2024.

That could all change this Thursday, with some analysts expecting the CBE to begin its first rate cuts this year. A strong base effect, slowing inflation, and improving balance of payments could provide room for a 100-200 bps cut, according to our latest poll of analysts. Others argue that geopolitical instability, external debt obligations, and Suez Canal revenue risks could push the CBE’s Monetary Policy Committee to hold steady until April.

#3- Emerging market fiscal consolidation is expected to shrink public sector construction bills and incentivize governments to encourage private investment, BMI reports. With fiscal consolidation a priority, many developing economies — particularly in Sub-Saharan Africa and Latin America — are diverting funds toward debt servicing, leaving fewer resources for large-scale public projects. Sectors heavily reliant on state funding, such as transport and housing, will bear the brunt of the cuts, with private investors expected to fill the gap. Adding to the uncertainty, the future of US aid flows post-US election remains unclear, raising further risks for government-backed infrastructure.

While private infrastructure spending should ideally see an uptick in 2025, its materialization is heavily dependent on political will and institutional capacity. BMI cites Sub-Saharan Africa’s significant pipeline of public-private partnerships (PPPs), but many projects are still in pre-construction phases, requiring further efforts to unlock funding — especially amid growing competition between China and the US for regional influence. In Latin America, transport, mining-related infrastructure, and energy projects are set to drive private sector involvement, spurred by rising demand for critical minerals, energy transition investments, and nearshoring trends.

Egypt’s infrastructure sector is leaning harder on PPPs as state-backed spending slows. The government signed EGP 20 bn worth of PPP contracts this year, covering strategic warehouses, dry ports, and waste conversion projects, with another USD 3.2 bn in infrastructure projects set to be tendered under the framework before year-end. Authorities are also preparing to launch 11 new PPP projects valued at EGP 62 bn, spanning power distribution, wastewater treatment, and education infrastructure.

#4- Trump’s return signals a rollback on climate infrastructure spending: The new Trump administration is expected to scale back climate-related infrastructure investment, both domestically and internationally, BMI reports. The Inflation Reduction Act (IRA), a key driver of clean energy and EV production, faces potential funding cuts or reallocations, while broader infrastructure spending under the Infrastructure Investment and Jobs Act (IIJA) and CHIPS Act could also be reshuffled. Wind energy, EVs, and green manufacturing projects are most at risk, as Trump has signaled plans to roll back unspent IRA funds and shift priorities toward fossil fuel development.

Internationally, US-backed climate initiatives are also likely to take a backseat as the administration pivots toward traditional energy projects and deregulation. This could impact sustainable infrastructure financing in emerging markets, where Biden-era policies sought to counter China’s Belt and Road Initiative with green alternatives. Environmental regulations are also likely to be loosened, potentially fast-tracking infrastructure projects but at the cost of climate commitments.

#5- Geopolitical tensions drive interest in alternative trade routes: Interest in the India-Middle East-Europe Corridor (IMEC) is steadily growing as regional tensions continue to disrupt maritime trade in the Red Sea. This has left governments mulling alternative land-based trade routes, many of which pass through our neck of the woods.

Notably, the viability of IMEC hinges on several challenges, from infrastructure gaps to diplomatic roadblocks, BMI writes. Saudi Arabia’s rail network lacks critical mainline links, while integration with Jordan and the UAE remains limited. Political hurdles persist too, with Riyadh and Tel Aviv yet to establish any formal ties. Without progress on these fronts, IMEC’s momentum could stall, though sustained Red Sea disruptions may fast-track efforts to make the corridor a reality.

REMEMBER- Traffic through the Red Sea is slowly picking up, but the anticipated post-ceasefire rebound in Suez Canal transit has yet to fully materialize. The Liberian crude oil tanker Chrysalis made its first transit last month since being attacked in July, a move the Suez Canal Authority (SCA) called a “strong message of reassurance” for regional stability. Meanwhile, at least six US- and UK-linked ships have safely passed through since 19 January, following the Houthis’ announcement that they would only target Israel-linked vessels after the ceasefire agreement between Israel and Hamas. But this remains a trickle compared to pre-crisis traffic, with Maersk, MSC, and Mitsui OSK still steering clear, citing ongoing security risks.

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CALENDAR

FEBRUARY

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

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.

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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