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EU-Egypt Summit ends with fresh financing commitments from the bloc

1

What We're Tracking Today

Egypt now sees the economy growing almost 5% this fiscal year

Good morning, all. We close out the week with another packed issue, diving into what went down during the EU-Egypt Summit, the Madbouly government’s new growth target for the fiscal year, and the new trade policy framework.

PSA-

WEATHER- It’s another sunny day in Cairo, with a high of 34°C and a low of 21°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 32°C and a low of 20°C.

WATCH THIS SPACE-

We will soon find out when the anticipated IMF mission will land in town for the fifth and sixth reviews of our USD 8 bn program, with the Fund making the announcement “within days,” Prime Minister Moustafa Madbouly said during his weekly presser. “We hope the visit will be within the coming few weeks,” Madbouly said.

REMEMBER- Earlier this week, Director of the IMF's Middle East and Central Asia Department Jihad Azour said it is yet to be determined when the anticipated IMF mission will land in Egypt for the reviews, but said that discussions between the government and the Fund regarding the reviews are expected to conclude in Q4 2025.

GDP WATCH-

The Madbouly government now sees the economy “nearly” growing at a 5.0% clip this fiscal year, up from previous estimates of 4.5% and up from 4.4% last fiscal year, Planning Minister Rania Al Mashat said yesterday. The upgraded growth forecast is supported by positive developments on the regional front with the Gaza peace agreement signed earlier this month and the government’s commitment to continuing economic and structural reforms.

More optimistic than most: The IMF sees the economy growing 4.5% this fiscal year, the forecast is more optimistic than the World Bank’s 4.3% forecast and the European Bank of Reconstruction and Development’s 4.4% forecast.


The EnterpriseAM Egypt Forum is over. The insights are just getting started.

This year's forum was packed with actionable intelligence on the future of Egyptian business. To make sure you don't miss a thing, we're launching the EnterpriseAM Forum Playback.

Every Thursday at 10am, you'll receive a special newsletter breaking down one key session — from the future of work to getting capital markets off life support. We'll also drop a companion podcast in our EnterpriseAM Egypt podcast feed so you can listen on the go.

Want more? We're soft launching our YouTube channel where we've dropped video highlights.


DATA POINT-

Non-oil trade deficit narrows in 9M 2025: Egypt’s non-oil trade deficit narrowed by 18% y-o-y in the first nine months of 2025 to USD 22.8 bn, according to a statement from the Investment Ministry. The drop came on the back of a surge in non-oil exports — which shot up 21% y-o-y to USD 36.6 bn between January and September.

Exports to our top five destinations — UAE, Turkey, KSA, Italy, and the US — grew by 42% y-o-y to hit USD 14.8 bn. The UAE stood out as the largest importer of our goods — with non-oil exports rising by 169% y-o-y to USD 5.9 bn.

The breakdown: Building materials topped our list of exports for the nine-month period, coming in at USD 11.7 bn, climbing some 51% y-o-y last year. This was followed by the chemicals and fertilizers, food industries, and engineering and electronic goods.

FACT CHECK-

The modest uptick in oil product imports has nothing to do with Egypt looking to free up gas for LNG exports — as reported by Bloomberg — but is a reflection of normal seasonal demand fluctuations, a senior government source told EnterpriseAM.

The data: The Madbouly government has contracted for eight shipments of diesel and butane for refinery operations worth a combined USD 1.2 mn — marking a 20k ton increase from the previous few months’ average as the state forecasts a slight jump in demand during the winter months, our source said.

CIRCLE YOUR CALENDAR-

The government will unveil a comprehensive five-year economic “post-IMF” program in December, Prime Minister Moustafa Madbouly said yesterday. The program will build on Egypt’s 2030 Vision and extend targets to 2050. The Planning Ministry is working on the program, taking into consideration the new National Narrative for Economic Development.

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


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THE BIG STORY ABROAD-

The US has sanctioned Russia’s two biggest oil companies, Roseneft and Lukoil, in a bid to ramp up pressure on the Kremlin to end the war in Ukraine. The move comes a day after a planned summit between the US and Russia to discuss a potential ceasefire was shelved, and is the first time US President Donald Trump imposes Ukraine-related sanctions on Russia since his second term began. (Reuters | Wall Street Journal | Financial Times | Guardian)

The EU also approved a package of sanctions that includes a ban on Russian liquefied natural gas imports from 2027, a year earlier than planned. (Bloomberg | Reuters)

Market reax: Oil jumped USD 2 on the news, with Brent Crude futures rising to USD 64.

ALSO GETTING ATTENTION- Tesla’s net income in 3Q 2025 fell short of analysts’ expectations, despite a boost in sales that drove revenues higher, as CEO Elon Musk cited tariffs and elevated research costs as challenges. Its shares fell 4% on the news. (Reuters | Guardian | WSJ)

From October 12–16, Somabay hosted the Somabay World Cup for the first time in Egypt, welcoming 173 participants from 19 countries to its signature Red Sea course. The tournament spotlighted Egypt’s growing presence on the global golf map, set against Somabay’s year-round sunshine, luxury resorts, and world-class sports and leisure scene.

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Diplomacy

EU unveils fresh funding for Egypt and more from the first EU-Egypt Summit

That’s a wrap on the first-ever EU-Egypt Summit: Yesterday was a busy day for Egyptian-EU relations with the first-ever EU-Egypt Summit taking place in Brussels in the presence of President Abdel Fattah El Sisi and President of the European Commission Ursula von der Leyen. We sum up some of the most important events from the summit and El Sisi’s time in Brussels below.

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

Representing Egypt: The Egyptian delegation that joined El Sisi for the summit included Planning Minister Rania Al Mashat, Investment Minister Hassan El Khatib, and Foreign Minister Badr Abdelatty — the ministers took the stage to participate in panels focusing on investment, innovation, industrial competitiveness and more; they also took part in the Economic Forum part of the summit.

So, what went down during the summit? Discussions touched on trade, security, migration, and what’s next for Gaza; the two sides announced new development finance agreements that will see the EU extend over EUR 200 mn in fresh funding; they also announced a path for future cooperation. Alongside the discussions between officials, private players got the chance to get acquainted with tens of companies present from both sides.

Setting the scene: Last year, the EU pledged a EUR 7.4 bn package of loans, grants, and investments through to 2027 and inked a joint strategic and comprehensive partnership with Egypt. The package included a EUR 1.8 bn investment protection mechanism, EUR 5 bn in concessional loans to provide macro-financial assistance, and EUR 600 mn in grants.

More funds secured from the EU: The EU unveiled a list of fresh funds coming our way to support a variety of areas —- EUR 75 mn to support the implementation of socioeconomic reforms, EUR 110.5 mn to advance sustainable development, economic governance, and technical vocational training, and EUR 50 mn in support for investment projects that advance the country’s green transition.

ALSO- The two sides formalized the recently-approved MoU for the EUR 4 bn second tranche of the EUR 5 bn package of macro-financial assistance package. The first tranche was disbursed at the end of December last year. Over the summer the European Parliament gave its final approval to the EU Commission's proposal to grant Egypt a EUR 4 bn loan.

Paving the way to secure even more European funding: Egypt now has access to the Horizon Europe program — the EU’s mult-bn-EUR research and innovation program — making it the second African country to join the program. The move gives Egyptian researchers, universities, innovators, and entities the same access EU members have to the EUR 93.5 bn research and innovation program.

The two sides agreed to strengthen cooperation in a variety of areas — green transition, energy, trade, investment, migration, and security.

A golden gateway for business and attracting investments: The summit brought together representatives from 100 Egyptian companies — including local fintech MNT-Halan, whose CEO Mounir Nakhla sat in on a panel alongside El Khatib — and 60 European companies, as well as 15 international financial institutions.

A call for more EU investments: In his closing speech, El Sisi called on European investors to view Egypt as “a reliable production partner capable of hosting European manufacturing lines that can serve global and European markets efficiently and competitively.”

Pitching Egypt to EU investors: “Egypt can be the industrial and technological ally that Europe needs to secure its supplies, diversify its sources, and enhance its global competitiveness,” El Sisi said during his speech. He pointed to promising investment potential in green hydrogen, pharma, electric vehicles, petrochemicals, AI, logistics, and defense industries, and invited European investors to visit Egypt to explore these sectors firsthand.

READ BETWEEN THE LINES- The summit comes as the bloc works to forge new trade and security agreements amidst geopolitical tensions with its partners, including tariff wars sparked with US President Donald Trump and export controls from the Chinese side, AP reports.

Gaza was also part of the conversation: During a meeting with El Sisi and Abdelatty, VP of the European Commission Kaja Kallas praised Egypt’s role in the Gaza peace plan, affirming the EU’s readiness to support reconstruction efforts in the strip, and stressing the need to preserve the Palestinian Authority and uphold international law.

WHAT’S NEXT FOR EU-EGYPT COOPERATION-

In addition to agreeing to convene for the next EU-Egypt summit in Egypt in 2027, both sides laid out a roadmap to deepen partnership across key areas.

In energy and climate cooperation, both parties plan to conduct a comprehensive study assessing policy options — including carbon pricing mechanisms — to strengthen Egypt’s role in the low-carbon economy and support a climate-compatible trade strategy.

As for trade and investments: The two parties will pursue a Sustainable Investment Facilitation Agreement (SIFA) to complement their existing Association Agreement. In addition, they plan to continue monitoring progress in green and clean tech investments.

The two sides agreed to co-organize a business roundtable next year, bringing together businesses and investors to highlight new potential partnerships under the Investment Mechanism.

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Investment Watch

Anchorage recommits to Sokhna petrochemical complex with increased price tag of USD 6.5 bn

Anchorage Investments is still serious about its proposed mega petrochemical complex in Ain Sokhna, inking a strategic partnership agreement with the Suez Canal Authority yesterday for the project, according to a statement from the authority. The project will be built on authority-owned land and will play a role in driving the state’s industrialization push, reducing the petrochemical import bill, and employing some 2.5k workers, according to the statement.

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

The project — under the name Anchor Benitoite — has been in the works since at least2021. It lined-up a contractorinked tech agreements with Honeywell, shortlisted contractors, and was bidding for a golden license. The company recommitted to the project in 2023, but had been largely silent since.

The project is back with a larger USD 6.5 bn price tag, up from the USD 2.5 bn announced in 2023. The complex’s first phase of development will cost USD 2 bn and primarily produce polypropylene and hydrogen as a secondary product. The second phase will come in at USD 4.5 bn and enable the plant to expand into other petrochemical products.

4

Trade

Egypt wraps up work on new trade policy framework

The Investment Ministry has finalized the country’s new trade policy document — seen by EnterpriseAM — aimed at crafting policies that deepen local manufacturing and reducing imports of intermediate and capital goods, while expanding exports of goods with comparative advantages — in line with the government’s plan to double exports.

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

Breaking down our imports: Egypt’s imports are dominated by engineering and electronic goods, which reached USD 24 bn in 2024. They were followed by chemical products, fertilizers, and building materials. Agricultural imports also held a significant share of our imports for the year — between USD 9–12 bn — driven by higher imports of grains and other food commodities. Our imports come in from the UE, China, Arab countries, and the US, while trade with Africa remains limited, highlighting untapped markets, a concentration of trade partners, and dependence on a narrow supplier base.

The document calls for coordination among various policies — including trade, industrial, fiscal, and monetary policies — under a comprehensive national program to support Egyptian exports. This includes strengthening the production base, expanding export capacity, and increasing the added value of Egyptian products— all to balance trade and sustainably reduce the trade deficit.

It additionally highlights aligning trade policy with production, social, and environmental policies through a package of incentives and reforms. Linking investment and trade is also essential to address structural imbalances in the trade balance and to open up to new markets.

The policy focuses on securing supply chains through offering preferential prices and terms, by maximizing the benefits of all trade agreements and engaging in dialogue with international patterns, the document highlights.

The new framework seeks to replace trade restrictions with structural reforms, in a bid to improve the efficiency of supply chains and trade-related logistics, as well as reducing customs clearance times.

ICYMI- The Finance Ministry recently finalized a package of custom facilities, that includes launching a new pricing platform for frequently imported goods, enabling six-month installment payments for customs duties, and postponing customs duty collection via the Nafeza system until goods arrive.

What’s next? The new trade policy document will be shared with the business community and relevant stakeholders to incorporate their technical feedback and ensure a clear and comprehensive policy.

This publication is proudly sponsored by

5

A MESSAGE FROM VODAFONE

Vodafone Egypt is the GEM’s exclusive technology partner ahead of its opening

The Grand Egyptian Museum (GEM) is poised to become one of the world's smartest cultural institutions through a landmark exclusive technological partnership with Vodafone Egypt. This monumental agreement, in collaboration with Legacy for Management and Development, the official operator of the museum, which reflects a shared vision for a digitally connected Egypt, was officially signed in the presence of the CIT minister and the tourism minister. Vodafone Egypt views its role as the exclusive technology partner for the GEM as a key pillar in its strategy to lead digital transformation and develop smart infrastructure, positioning itself as a trusted partner to the Egyptian government in major national projects.

Vodafone Egypt is delivering a full-scale Internet of Things (IoT) solution, integrating 19 critical systems — from the complete building management system, lighting, heatmap, parking management, climate control, and gate reader, to ticketing and wayfinding — into a single, unified operation center. The core of this is a secure, unified IoT platform that manages all devices and provides real-time visibility across the entire facility. This advanced platform is explicitly designed to provide the best guest \ visitor experience, employing smart monitoring to maintain precise, tailored preservation conditions for each priceless item.

Furthermore, the system uses predictive analytics and intelligent energy management to minimize the carbon footprint and ensure operational efficiency and sustainability. By leveraging this highly advanced technology and dedicated local expertise, the GEM achieves a truly world-class visitor experience, seamless operational flow, and a state-of-the-art system for cultural preservation. This technological showcase not only safeguards Egypt’s heritage but also significantly strengthens its global image, merging Egypt's cultural legacy with Vodafone’s technological might.

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FINANCIAL SERVICES

Bokra Holding gears up for EGP 31.25 bn five-fund launch

Fintech startup Bokra Holding is preparing to roll out five new shariah-compliant investment funds with a combined target size of EGP 31.25 bn, founder and CEO Ayman El Sawy told EnterpriseAM. The lineup — spanning sukuk, real estate, precious metals, and venture debt — will follow a tranched multi-series structure, with all launches pending final FRA approval.

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

The pitch: Bokra is targeting a diversified investor base spanning retail, ins., and financial institutions, while also looking to attract regional capital from the GCC. “Bokra’s objective is to enable individuals and businesses to invest small amounts through a digital, Sharia-compliant platform,” El Sawy said. “Retail investors benefit from low entry barriers and flexible investment goals, while corporates gain access to unique structured finance products.” El Sawy told us earlier this year that Bokra’s model aims to bridge the nationwide savings gap, created by limited trust in formal financial institutions and a culture of parking wealth in gold or property.

REFRESHER- The company secured FRA licenses last month to establish the Bokra Private Equity Investment Fund and the Bokra Venture Capital Investment Fund, as well as to begin operations on its Metals Investment Fund. The rollout builds on the fintech’s push to bring everyday savers into the formal investment ecosystem.

Timeline: El Sawy said Bokra aims to debut the first tranches of its EGP 20 bn sukuk, EGP 10 bn real estate, and EGP 250 mn precious metals funds before year-end, followed by two venture-debt tech funds in 1Q 2026, one raising EGP 500 mn and the other USD 10 mn.

Sukuk + real estate funds: The sukuk fund will issue new Islamic bonds directly to finance established, credit-rated borrowers, targeting asset-backed projects across real estate, healthcare, manufacturing, logistics, education, and financial services, El Sawy said. The real estate fund will partner with major developers to roll out industrial, healthcare, and residential projects over multiple tranches.

The precious metals fund — including the retail-focused Bokra Gold Fund — will be fully backed by 100% physical gold, stored in secured, insured, bank-grade vaults, and structured under an active Mudarabah trading model. “At Bokra we believe your gold should work for you, not the other way around, so our first gold issuance will have zero fund manager fees and zero fixed fees (the fund sponsor will bear all fixed fees on behalf of the fund),” El Sawy said. The fund will target everyday retail investors, who will be able to redeem their fund certificates in the form of banknotes or physical gold, he added.

The two venture-debt tech funds will adopt a multi-issuance model, with each tranche targeting growth-stage sectors, including agritech, healthtech, logistics tech, edutech, fintech, and tech manufacturing. The EGP-backed fund will cater to local firms, while the USD fund will support export-driven startups or those with foreign-currency revenues.

Some funds will be listed on the bourse: According to El Sawy, the real estate, venture-debt, and sukuk funds will be listed on the EGX “to avail maximum trust & liquidity and open the doors to regional and international investors to invest in Real World Assets located in Egypt.” Meanwhile, the precious metals fund will remain open-ended and offered directly through Bokra’s digital platform.

What’s next? Bokra’s five-year roadmap focuses on expanding access to real-world, shariah-compliant investments that generate shared value by channeling capital into local projects, strengthening Egypt’s economic base, and empowering users to build wealth while contributing to sustainable, tech-driven, export-oriented growth, he said.

7

Economy

Fitch Ratings’ key takeaways on the Egyptian economy

Fitch Rating’s recently reaffirmed B rating and stable outlook reflects the balance between the country’s strengths and vulnerabilities, the rating agency said in a recent note seen by EnterpriseAM. Although Egypt has a large economy, robust GDP growth potential, and substantial bilateral and multilateral support, it also suffers from weak public finances, high external financing needs, persistent geopolitical risks, unstable commercial financing flows, and elevated inflation, according to Fitch.

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

REMEMBER- The global rating agency last month revisited its position on our sovereign debt earlier this month, reaffirming its B rating and stable outlook. This action coincided with another upward revision from S&P Global Ratings, which upgraded Egypt’s long-term sovereign credit rating to B from B-, the first upgrade since 2018, while affirming its short-term rating at B.

The agency points to preserved FX position as one of the key positive developments, enhancing its outlook, with our FX reserves edging up more gradually in 2025 after a strong recovery in 1H 2024, despite the sharp dip in Suez Canal revenues due to regional geopolitical tensions.

Looking ahead, Fitch expects our FX reserves to “remain fairly stable, ending 2027 at 4.2 months of current external payments,” according to the report, which attributed this improvement mainly to the post-float uptick thanks to the policy shift towards a more flexible exchange rate regime since March 2024. Fitch also noted that our “banking sector remains resilient and highly liquid.”

Fitch anticipates further cuts in interest rates as inflation is projected to continue its downward path while making progress toward the CBE target of reducing headline inflation to 7% (± 2 percentage points) by 4Q 2026. This downward trajectory will drag the debt interest-to-revenue ratio from 64% to 40% by 2029, though the report notes this ratio will still be significantly elevated.

ICYMI- Annual headline urban inflation cooled for the fourth consecutive month in September, falling by 0.3 percentage points to 11.7%, supported by a drop in food and beverage price inflation. However, this disinflation streak is expected to soon come to a halt, with inflation data for October expected to show an uptick in inflationary pressures stemming from the recent fuel price hikes to liberalize pricing and recover production costs.

Fitch outlined several factors that would boost our credit profile, including further decline in external vulnerabilities by a marked strengthening of the international reserve position, a sustainable decline of the current account deficit, and fast-tracking structural reforms. Maintaining a flexible exchange rate regime and a marked dip in inflation toward the CBE’s target could also help support an upgrade.

Curbing debt issuance costs and fiscal consolidation also support an upgrade. This could be achieved “through greater revenue mobilization and containment of off-budget spending, that sharply reduce debt interest-to-revenue and put public debt-to-GDP on a firm downward path over the medium term,” the rating agency noted.

Fitch cautioned about some downside risks to our credit rating, including potential weakening in external finances, lower commitment to exchange rate flexibility, and deterioration of international reserves and banks’ net foreign assets. Furthermore, an elevated current account shortfall and a more restricted access to external financing also pose downside risks to our credit profile. The rating agency also noted that our profile could be hammered by any potential increase in debt sustainability risks, fiscal policy loosening, or lower financing flexibility. A further escalation in regional tensions could give a hard blow to tourism and Suez Canal revenues, hurt investor sentiment, and delay the reform timeline.

8

Kudos

Abou Ghaly Motors partners with UNHCR to support refugees

Abou Ghaly Motors partnered with the United Nations High Commissioner for Refugees (UNHCR) to support refugees and vulnerable host communities in Egypt, according to a company statement (pdf). The partnership focuses on education, skills development, and employability programs aimed at empowering refugees and improving access to services and livelihood prospects while expanding the company’s CSR activities in community development and social impact.

AND- COREangels MEA was named the best angel network in Africa at the AESIS 2025 Awards during the ABAN Congress, Africa’s leading investor and innovation event, the Cairo-based network said in a statement (pdf). The PTS Holdings-operated USD 10 mn pre-seed fund was recognized for its venture studio model that connects global investors with early-stage startups across Africa and the Middle East.

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

What they said: “This award reflects our belief that Africa’s innovators deserve a global stage … Through PTS Holdings, we’ve built an ecosystem that merges innovation, investment, and impact — operating COREangels MEA, Kemtix Ventures, and ORO E-Ventures to empower founders, support investors, and deliver meaningful, lasting value,” PTS Holdings Executive Chairperson and COREangels MEA Founding Partner Maha Mandour said.

PLUS- AUC PhD candidate Shimaa Farag received the Young Talents from Africa Eni Award for developing an enzyme-based, eco-friendly method to treat wastewater in Egypt, according to a statement (pdf) from AUC. She is the only Egyptian and Arab recipient of this year’s award.

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Also on our Radar

Egypt extends suspension on issuing new licenses for microfinance, consumer finance players

REGULATION-

The Financial Regulatory Authority (FRA) has extended its suspension on issuing new licenses for companies seeking to operate in consumer finance or microfinance for another year, according to a statement. The suspension now includes microfinance license applications from associations and civil society organizations. Fintech-based services are exempt from the decision.

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

REMEMBER- Last October the FRA suspended issuing new licenses for the aforementioned NBFS, citing a notable increase in licenses granted over the past two years raising concerns about the financial solvency of existing service providers.

LOGISTICS-

Beit Logistics earmarks EGP 500 mn for Safaga Logistics Center: Egyptian shipping and logistics player Beit Logistics inked a land-use agreement with the Golden Triangle Economic Zone Authority to set up an integrated logistics center at Safaga Port — funneling in investments exceeding EGP 500 mn in the first phase of the project, according to a statement (pdf). The facility will be developed on a 65k sqm area and will create some 350 direct and indirect jobs.

On the cards: The hub will feature some 16k sqm of warehouse space, with a storage capacity of 1 mn tons annually. It will also host a 50k sqm container and general cargo yard, which will handle around 100k TEUs per year.

Leading the way: “In the coming years, we expect accelerated investment in transport, renewable energy, and logistics infrastructure [into the Golden Triangle], all supported by public–private partnerships,” Kadmar Group CEO and Beit Logistics Vice Chairman Medhat El Kady told EnterpriseAM. “Safaga, in particular, is set to become a gateway for exports from Upper Egypt and neighboring countries — linking mines, factories, and industrial cities directly to the global market,” he added.

MANUFACTURING-

Snackmaker Edita has inked a EGP 320 mn asset purchase agreement with an undisclosed regional company to acquire production equipment, including two cake production lines, two bakery lines, as well as related machinery, according to a disclosure (pdf) from the company. The move is expected to raise Edita’s production capacity by around 15% across its main product categories: cakes and croissants.

The added production capacity will help Edita meet growing consumer demand in its core segments, a representative from the EGX-listed company told us. The new lines will be housed in existing Edita factories and were acquired below replacement cost, they added.

M&A WATCH-

BasharSoft, the parent company of online job platforms Wuzzuf and Forasna, fully acquired iCareer, Egypt’s largest provider of employment programs and career solutions, according to a statement (pdf) from the buyer. The acquisition includes iCareer’s applicant tracking software Recruitera, which will be integrated into BasharSoft’s platforms to streamline hiring and enhance data-driven recruitment. The value of the acquisition was not disclosed.

What’s next? The acquisition supports BasharSoft's plans to expand across the GCC, following its Saudi Arabia launch earlier this year. The company is also planning to pursue additional acquisitions in the jobtech and HR space, grow its workforce by 50% over the next two years, and increase revenues to USD 25 mn. It is also preparing for a potential IPO within two to three years.

REAL ESTATE-

One of One launches two real estate projects: Newly-established real estate developer One of One has launched two new projects in East and West Cairo, as part of a broader EGP 150 bn investment plan, with total targeted sales of EGP 13 bn, CEO Mostafa Salah said during a press conference attended by EnterpriseAM. The first project, dubbed Bridges, is a 10-feddan mixed-use development in Sheikh Zayed, while its second project, Grounds, will be a 50-feddan project in the Sixth Settlement hosting residential units, office spaces, and commercial areas. Construction work on both projects is scheduled to begin in 2026.

10

PLANET FINANCE

Global financial inclusion stalls in 2025 after two years of improvement

Global financial inclusion has lost momentum in 2025, following two years of steady progress, according to the Global Financial Inclusion Index (pdf) by Principal Financial Group and the Center for Economics and Business Research (Cebr). The Index — which evaluates the roles of governments, financial systems, and employers across 42 markets — edged down to 49.4 points from 49.6 a year earlier, though it remains well above the 2022 baseline of 41.7. Singapore maintained its lead as the world’s most financially inclusive market for the fourth straight year.

The slowdown was driven primarily by a pullback from employers, with the employer support score dropping 0.6 points as 83% of markets reported declines. Persistent geopolitical tensions and shifting trade dynamics have left companies cautious, scaling back on employee benefits and flexible pay programs.

Governments and financial systems continued to play a stabilizing role, as the global government support score rose 0.6 points, with 35 markets posting gains in one or both pillars. Although the global financial system score slipped by 0.9 points, wealthier regions — including North America, Europe, and the Middle East — posted modest improvements, signaling stronger institutional resilience.

Gulf states recorded the strongest y-o-y gains in the financial system pillar, fueled by rapid fintech growth and ongoing digital transformation. The UAE led the advance, climbing five positions and 3.9 points to the 24th spot, while Saudi Arabia rose four spots and 1.8 points to rank 35th.

US steadies after earlier declines: The US posted a modest 0.6-point increase in its overall score, snapping two consecutive years of decline while maintaining its seventh place globally. The uptick reflected gains in financial system support, including better access to credit, private lending growth, and fintech expansion. However, broader economic headwinds and subdued SME growth limited further progress.

Markets with higher financial literacy and robust digital infrastructure proved more resilient to debt stress in tighter monetary conditions, Principal Asset Management CEO Kamal Bhatia noted. A 1% rise in financial literacy correlates with a 2.8% reduction in household loan defaults and a 6.7% decline in debt-to-income ratios, contributing to long-term GDP growth, the report found. Digital finance reforms — such as instant payments and open banking — have also propelled gains in countries like Argentina, South Korea, and Brazil since 2022.

Looking ahead: Geopolitical shocks and economic headwinds are reshaping the path of global financial inclusion, Cebr’s managing economist Pushpin Singh said. He emphasized the need for deeper financial literacy efforts and stronger collaboration among employers, governments, and financial institutions to sustain global progress.

MARKETS THIS MORNING-

US-China trade worries are weighing down Asian markets this morning. Japan’s Nikkei is down 1.4% in early trading, while the Shanghai Composite is down 0.9% and Hong Kong’s Hang Seng is down 0.7%. Meanwhile, Wall Street futures are mixed as investors process earnings.

EGX30

37,577

-0.3% (YTD: +26.4%)

USD (CBE)

Buy 47.49

Sell 47.62

USD (CIB)

Buy 47.50

Sell 47.60

Interest rates (CBE)

21.00% deposit

22.00% lending

Tadawul

11,586

+0.4% (YTD: -3.7%)

ADX

10,228

+1.1% (YTD: +8.6%)

DFM

5,974

0.0% (YTD: +15.8%)

S&P 500

6,699

-0.5% (YTD: +13.9%)

FTSE 100

9,515

+0.9% (YTD: +16.4%)

Euro Stoxx 50

5,639

-0.8% (YTD: +15.2%)

Brent crude

USD 62.59

+2.1%

Natural gas (Nymex)

USD 3.44

-0.3%

Gold

USD 4,121

+1.4%

BTC

USD 107,492

-1.5% (YTD: +14.9%)

S&P Egypt Sovereign Bond Index

949.45

0.0% (YTD: +22.1%)

S&P MENA Bond & Sukuk

152.56

+0.3% (YTD: +9.0%)

VIX (Volatility Index)

18.60

+4.1% (YTD: +7.1%)

THE CLOSING BELL-

The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 5.5 bn (18.5% above the 90-day average). International investors were the sole net sellers. The index is up 26.4% YTD.

In the green: Egypt Aluminum (+6.5%), Oriental Weavers (+3.5%), and Misr Cement (+2.3%).

In the red: Abu Qir Fertilizers (-7.0%), EFG Holding (-2.7%), and Qalaa Holdings (-2.5%).

11

My Morning Routine

My Morning Routine: Amal Mahmoud, CEO of Diwan

Amal Mahmoud, shareholder and CEO of Diwan: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Diwan’s CEO Amal Mahmoud (LinkedIn). Edited excerpts from our conversation:

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

My name is Amal Mahmoud. Human connections and community-building are two pillars that have always been my main focus, even before Diwan. I majored in psychology with a minor in computer science at the American University in Cairo. After graduation, I worked as a systems analyst and software developer — and even then, I was drawn to the human side of technology and how people interact with systems.

My career hasn’t been linear. After moving back to Egypt from Saudi Arabia, I joined Diwan as a store manager in its early years. At the time, Diwan was transforming from a single bookstore into a growing chain. It was my first real experience in business and retail, and it was challenging, rewarding, and full of learning. I knew very quickly that Diwan and I fit perfectly together.

Then, my family and I moved to Dubai. I used that time to explore more of what I really like and found that I love community, I love books, I love stories, and I love psychology. Preparing for the next chapter of my life, I continued my studies in psychology and earned a certification in Positive Psychology from the Wholebeing Institute in the US. I also became certified as a life coach, thinking that it would be my next career.

But upon moving back to Egypt, I was asked to join Diwan — I was excited by the prospect of going back and trying to grow Diwan again. At the time, co-founders Nadia Wassef and Hind Wassef were both away, and I found myself, former Diwan colleague Layal, and one of the original co-founders Nihal Schawky at the helm.

Our main focus was growing Diwan through what we know and love — human connection, by taking care of our employees, our customers, and our community. But we also learned that passion alone isn’t enough — you need to pair it with sound business thinking. So I began focusing more deeply on strategy, collaboration, and operational sustainability.

It’s wonderful to do what you love, but if you only focus on the emotional or creative side, you risk losing the business that sustains it. For me, the real challenge (and joy) has been finding the balance between purpose and performance.

For us, it’s all about community. We see ourselves as a chain of bookstores — each branch is a neighborhood hub with its own rhythm, character, and audience. Every Diwan branch is shaped by the people it serves, but Diwan’s essence, values, and experience are consistent throughout.

The current industry challenge is the digital world. We’ve been focusing on extending into the digital sphere on different platforms to continue connecting and expanding the community of readers, even during the age of digital alienation. Even as things shift online, there are always people who still want human connection, to experience things on the ground as a community. You can find any music you want online, but people are going to more concerts than before. We want to keep the bookstore experience rich, relevant, and engaging.

At the same time, we want to be part of the digital world and reach people that way as well, which is part of the motivation behind our podcast Fil Diwan.

The most interesting trend in the book industry right now is the rise of audiobooks. It has been a long time coming, but it is now very, very trendy in the Middle East. It’s reaching new audiences who aren’t necessarily readers and giving them the chance to listen to literature and explore libraries of books.

Another trend is the revival of the bookstore as a cultural destination, which I think Diwan has always been. I read a study that showed that what survived when Amazon started taking over the business of bookselling wasn’t the big chains, but the independent bookstores. Again, this is why I think it’s all about human connection and community.

I wake up around 5:30am every day. After I pray, I have my coffee. This is the quality time I spend with my husband. This is when my energy is at its highest, so I use it to get a jumpstart on my work before heading to the office or to meetings — I work for around two hours from home, looking at reports, replying to important emails, and drafting things I need to prepare. The rest of the day doesn’t have a specific structure — no two days look the same after my morning routine; it all depends on what I have to get done.

The one constant in my day, besides coffee, is connection. There is always a moment of connection throughout the day. Whether with a colleague, with a customer, or anyone. This is something that recharges me — it gives me purpose.

I stay focused and organized by learning to prioritize rather than multitask. I was a great multitasker, and it was serving me before, but now it’s not. Now, I’m more into having things in order. I’ve been introduced to bullet journaling, and I’ve found it to be very helpful — you plan out your goals, your to-do lists, and your reflections for the day, and have it all laid out in front of you.

I believe more in wholeness rather than a work-life balance. Maybe I’m lucky that Diwan’s values align with my personal values. So for me, work is a continuation of that — an intertwining instead of a balance. I make sure that the team knows we’re a family and that we’re here for each other.

I have a lot of book recommendations, but the ones that really changed me or helped me grow were The Road Less Traveled by M. Scott Peck, Man’s Search for Meaning by Viktor Frankl, and The Seat of the Soul by Gary Zukav. They helped me accept and embrace difficulty and struggle, using my purpose to overcome these obstacles, view them as challenges instead of crises, and answer questions about our intention and calling, as Diwan.

Why am I here? Why are we here? We’re here to do good, to have an impact. And that doesn’t mean that we aren’t focused on growth — but growth is a means, not an end. The end is to contribute to the community and to do good within it.

What’s next for me is helping Diwan become a key cultural player, and not just in Egypt. Since the launch of Diwan Publishing, we’ve been attending book fairs around Arab countries. We’re hoping to have the Diwan bookstore experience in other global cities, and one of the locations we’re in conversation about is Montreal. Our edge would be our collection of Arabic literature, which will be available to people who speak Arabic and in translation for people who don’t.

The best piece of advice I’ve been given was “When you appreciate the good, the good appreciates.” It was told to me by a professor — it appealed to the logical and analytical part in me, and I enjoyed the wordplay. It helps me step back and consciously focus on the good in the big picture — to see the potential and envision the improvement. It works with people too. When you identify someone’s strengths and skills and help build them, it grows and gives back.


OCTOBER

23-25 October (Thursday-Saturday): Stone Africa Expo, Cairo International Conference Center.

28 October (Tuesday): BEBA’s working dinner with Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib.

October: The third iteration of the Export Smart Exhibition and Conference.

October: The tenth session of the Egyptian-Lebanese Joint Higher Committee.

Mid-October: Capmas to publish the findings of its 2023-2024 income and expenditure survey.

NOVEMBER

1 November (Saturday): The official opening of the Grand Egyptian Museum.

3 November (Monday): S&P Global to release PMI data for September.

9-11 November (Sunday-Tuesday): The sixth edition of the TransMEA 2025 forum and exhibition, Egypt International Exhibition Center.

10 November (Monday): Capmas expected to release inflation data for October.

16-19 November (Sunday-Wednesday): Cairo ICT 2025, Egypt International Exhibition Center.

20 November (Thursday): Monetary Policy Committee meeting.

23-25 November (Sunday-Tuesday): NEBU Expo 2025 gold and jewelry exhibition, Egypt International Exhibitions Center, New Cairo.

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

November: The Conference on Early Recovery, Reconstruction, and Development in Gaza.

DECEMBER

1-4 December: Egypt Defence Expo (Monday-Thursday), Egypt International Exhibition Center.

4-7 December (Thursday-Sunday): Egy Stitch & Tex Expo 2025, Cairo International Conference Center.

15 December (Monday): Neo Gen PropTech and Sustainable Smart Cities Conference, The St. Regis Hotel New Capital

25 December: (Thursday): Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

December: Germany’s North Rhine-Westphala business delegation to land in Egypt.

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

3Q 2025: Polaris Parks to finalize contracts for two new industrial zones in the new capital and Sadat City.

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

2H 2025: Potential visit by Chinese President Xi Jinping to Egypt

4Q 2025: The beginning of construction works on China’s State Grid two solar projects.

4Q 2025: GB Auto starts assembling one of China’s Great Wall Motor models in 4Q 2025.

4Q 2025-1Q 2026: Kasrawy Group to launch first Avatr EV models in Egypt.

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2025: Release of the government’s Startup Charter document.

Before 2025-end: The government will launch two ro-ro shipping lines with Saudi Arabia and Turkey.

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.

10-12 February (Tuesday-Thursday): Gitex Global’s AI Everything Middle East & Africa Summit

15 March 2026: IMF to hold its seventh review of Egypt’s USD 8 bn EFF arrangement.

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

15 September 2026: IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

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

2027

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

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

EVENTS WITH NO SET DATE

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

2027: Egypt-EU Summit 2027

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

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

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