Finance Ministry looks to increase annual tax revenues to EGP 3 tn with reforms to expand base, not increase taxes

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WHAT WE’RE TRACKING TODAY

Customs rules for Gulf transit cargo waived amid war

Good morning, friends. Whether in the international business press or in the pages of EnterpriseAM, the ongoing war on Iran — now in its 13th day — seems to be the topic or subtext of every story.

While Egypt suspends Advanced Cargo Information requirements for transit shipments in and out of Gulf states and moves to reassure international energy players to carry on investing with promises of arrears payments, we’re seeing the EGP gain on the greenback for the second day in a row.

But leading the issue — and in a refreshing break from the war — is the Finance Ministry’s addition of eight tax reforms for its upcoming tax reform package, which looks to increase annual tax revenues to EGP 3 tn by pushing compliance and expanding the base, not hiking tax rates.

BUT FIRST- The Eid break is officially only a week away, with Prime Minister Moustafa Madbouly marking Thursday 19 March to Monday 23 March as a paid public holiday for government employees. We’re yet to hear from the Labor Ministry, Central Bank, and the EGX, but we expect them to follow suit with the same announcement for workers in the private sector, banks, and the bourse.

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

CUSTOMS — The Egyptian Customs Authority has suspended Advanced Cargo Information (ACI) requirements for transit shipments in and out of Gulf states, according to a circular from the Authority seen by EnterpriseAM. The three-month suspension comes as Egypt works to both funnel Gulf energy out of the country and goods in as the closure of the Hormuz Strait closes the GCC’s main trade connection with the rest of the world.

The details: Indirect transit shipments heading that will then head to ports in Nuweiba, Ain Sokhna, or Safaga to cross the Red Sea into the Gulf, along with Gulf exports that will arrive in Egypt before moving to a third country are now exempt from preregistration to get an Advance Cargo Information Declaration number before arriving on Egyptian shores. Both the importer and exporter however are not allowed to be Egyptian.

Why this matters: While the need to support our Gulf neighbours in this time of need is worthy in and of itself, the move to facilitate the movement of goods and energy in and out of the country is laying the groundwork for Egypt to become the GCC’s Hormuz Strait-proof gateway to the Mediterranean and the rest of the world if we ever see a conflict like this arise again in the future.

REMEMBER- This isn’t the only state-led effort to position Egypt as a logistics bridge for the GCC amid the Hormuz Strait closure, with the country offering up its Sumed pipeline that runs from Ain Sokhna to Sidi Kerir and 10 additional Red Sea storage facilities to help export Saudi crude from the Mediterranean.

Market watch

Could we see oil dip some more? In a turnaround, the International Energy Agency (IEA) said it is releasing 400 mn barrels of oil from the 32 member states’ strategic reserves. The barrels will be released over a set time period and be allocated according to each country’s needs.

We were expecting things to go differently after the G7 and IEA said they are holding off on releasing oil reserves earlier this week. We suspect that Iran’s Revolutionary Guards recently saying it wouldn’t allow “one liter of oil” to leave the region should US-Israeli strikes continue and Brent briefly hitting USD 120 bbl had something to do with the change of heart.

How much difference will 400 mn make? To put it into perspective, pre-war, around 20 mn barrels passed through the Strait of Hormuz everyday, representing around 25% of maritime oil trade. This means that the barrels should cover around 20 days’ worth of supply.

IN CONTEXT- The 400 mn figure is significantly larger than the 182 mn released by the agency when Russia invaded Ukraine, making it the largest move of its kind.

Iran’s message: “Get ready for oil to be USD 200 per barrel,” a military spokesperson said in comments picked up by Reuters.

Oil price rises, despite all efforts: Brent crude surged beyond the USD 100 / bbl mark this morning after Oman evacuated all vessels from its key oil export terminal and fresh attacks on two tankers in Iraqi waters, Bloomberg reports. These updates raised fears that we could be looking at supply disruptions that extend beyond the Strait of Hormuz.

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Data point

46.0k — that’s the number of hotel rooms in the pipeline in Egypt, marking the country as having the most planned keys on the continent, according to W Hospitality Group’s 2026 Hotel Chain Development Pipelines in Africa report. Egypt has more than 4x the amount of hotel rooms planned than Morocco in second place and is expected to see 33 hotels open in 2026 as the country works towards its target of accommodating 30 mn tourists a year by 2030.

PSA-

WEATHER- Temperatures are finally on the up in Cairo today, with a welcome high of 24°C and a low of 13°C, according to our favorite weather app.

It’s yet to warm up as much in Alexandria, with a high of 21°C and a low of 13°C.

And over the weekend, expect to see temperatures inch up a degree in the capital and fall by the same amount for our friends on the Mediterranean.

The big story abroad

Making headlines this morning is the US’ plan to release 172 mn barrels of oil from its emergency reserve, as part of a coordinated effort by the International Energy Agency to curb surging energy prices triggered by the Iran war. The Trump administration will start releasing barrels over the coming weeks and over a 120-day period.

^^ We have more on the IEA’s plan to release 400 mn barrels of oil in the news well, above.

ALSO- Several international outlets are taking note of how much the US has spent on its war on Iran — the bill came to an estimated USD 11.3 bn in the first six days of the campaign on the Islamic Republic.

Meanwhile, on Wall Street: Alternative investment firm Cliffwater has placed a 7% cap on redemptions of its flagship private credit fund, after investors tried to withdraw some 14% of shares — one of the largest requests seen in the market. Withdrawals from the fund came amid growing concerns over the quality of loans linked to software companies whose business models are now under threat from advancements in AI tech. Hours after news of the cap came to light, Morgan Stanley followed suit with similar limits.

Carrots and sticks at the Finance Ministry

The Finance Ministry is taking on board feedback from the business community with an additional eight reforms in its second tax reform package, three government officials tell EnterpriseAM.

Why this matters: Driving the ministry’s now 30-reform strong package is the aim of increasing annual tax revenues to EGP 3 tn — up from EGP 2.0 tn in the last fiscal year — within two fiscal years by broadening the net and streamlining compliance, not hiking tax brackets.

Among the key measures is the introduction of a mobile-based electronic receipt system. The new system will allow taxpayers to issue electronic tax receipts through Android mobile phones. Tax payers mobiles will effectively function as a point-of-sale device to enable the issuance of electronic receipts with minimal data entry — only requiring the customer’s ID and detailed information once a sale crosses EGP 150k threshold — we’re told.

The Egyptian Tax Authority is also preparing to launch an AI-powered international WhatsApp service to tax planning guidance right on our phones, available to both local and foreign investors.

Transferring price audits won’t be as much of a drag on our resources as it once was, especially for those of us running a multinational, free-zone entity, or special economic zone firm. The new draft provisions now officially separate commercial tax audits from transfer price audits. The package also introduces a new stage for reviewing taxpayers’ appeals, which would help ease tax pressures on companies with local operations that submit transfer pricing files, thereby improving their liquidity.

The double taxation on dividend distributions between holding companies and subsidiaries is now gone. Also, quarry and departure fees that usually intensified tax disputes are now unified. And for those of us holding real estate individually and not trading professionally, we will benefit from a flat 2.5% tax on property disposals — even across repeated sales.

The provisions are also expanding sample-based audits to free up your capital faster and extending the VAT suspension on machinery and medical devices for four years instead of three. If your firm lands on the white list, the time taken to process your VAT refunds will be just one week.

And if you ever need to pivot or wind down your entity, a new electronic system will drastically accelerate company liquidation, ensuring your capital doesn’t get locked up in red tape. The upcoming legislative amendments will also make it easier to clean up your balance sheet, as they set a minimum threshold for bad debts. If your uncollectible accounts fall under this mark, you are completely exempt from dragging those write-offs through exhausting legal procedures, freeing you to clear your books and keep your operations moving.

The MSME Development Agency will also double down on its push to formalize the informal economy, with the first 100k taxpayers to join a simplified and integrated tax system to be offered low-cost financing.

EGP stabilizes as expats send funds home

The EGP posted gains for the second day running, strengthened by a fresh wave of inflows from Egyptian expats in the Gulf, driven by regional security concerns.

As things stand: The greenback was changing hands at EGP 51.92-52.02 at state-owned banks yesterday, down from EGP 51.94-52.04 a day earlier.

Behind the numbers: Despite foreign investors pulling out of the market — they exited a net USD 1.13 bn in local T-bills yesterday compared to USD 1.17 bn on Tuesday — the market found a strong safety net in the remittances sent in from the GCC, bankers told EnterpriseAM. Egyptians working in the Gulf are sending money home at an increased rate due to concerns over regional security and tensions in the Gulf states, we’re told. Regional escalations have cost us USD 6 bn in outflows so far.

Beyond remittances, the recent disbursement from the IMF injected vital funds into the economy. Together, these cash inflows have successfully supported the foreign exchange market's supply-and-demand mechanism, cooling down interbank activity and stabilizing the currency, another bank told us.

A USD 500 mn signal to international oil companies

The Oil Ministry is moving to clear USD 500 mn in arrear payments to international oil companies before the end of May, a senior government official tells EnterpriseAM. The ministry wants to prevent arrears from piling up again, signaling that intention to keep the investment cycle intact despite regional turbulence.

The move sits inside a broader effort to shrink arrears backlog to some USD 1.2 bn by the end of June. If executed, that would bring total payments to roughly USD 5 bn — a number closely watched by operators who tie future drilling budgets to whether governments pay on time.

Why it matters: Our energy balance sheet is under pressure — the country had already estimated its natgas imports bill at some USD 12 bn before recent regional tensions, with the risk that it could now climb past USD 20 bn. Paying partners on time and pushing refineries to full utilization are two levers we can still control to stabilize and maybe even increase production.

The ministry also plans to run refineries at maximum capacity, including Midor and facilities operated by Suez and El-Nasr Petroleum. By lifting the share of crude processed into fuel products from some 60% today to some 80%, the state is hoping that by refining more domestic crude locally, it can cut the amount it spends on imported petroleum products.

Edita reports strong 2025 results

Edita reports a 73% rise in net income

Snackmaker Edita Food Industries saw its net income rise 72.6% y-o-y to EGP 2.4 bn in 2025, which management attributed to stronger operating leverage, disciplined pricing, and sustained cost control, according to its latest earnings release (pdf). Revenues surged 29.5% y-o-y to EGP 20.9 bn for the same period.

For 4Q 2025, the firm’s bottomline rose 178.6% y-o-y to EGP 859.4 mn, while topline rose 45.4% y-o-y to EGP 6.2 bn.

What they said: “The exceptional fourth-quarter performance, coupled with our solid full-year results, reflects sustained demand for our products, the strength of our household brands, and the continued success of our strategy centered on price-point migration, portfolio optimization, and disciplined execution,” Group Chairman Hani Berzi said.

TMG and CI Capital raise EGP 8 bn in a single day for new real estate fund

Talaat Moustafa Group (TMG) and CI Capital newly launched EGP 8 bn target Awaed Real Estate Investment Fund was fully subscribed on its first day, according to a filing to the bourse (pdf). The fund gives CI Capital a 51% stake, while TMG’s real estate arm, the Arab Company for Projects and Urban Development, holds the remaining 49%.

Right time, right place: After the EGX30 wrapped up a sterling 2025 up over 40% throughout the year and the country made strides in taming inflation, the war in the region may have broken investor confidence in the index’s inevitable rise and created doubt around macro fundamentals. In times of economic uncertainty and geopolitical tensions, investors often pivot from growth assets like stocks to more defensive and yield-generating assets, which places Awaed’s portfolio of already leased commercial assets with stable and predictable returns from rent as an attractive inflation hedge and source of stable returns without much risk.

Madkour Holding and GoGas head to Mauritania for gas-to-power project

Madkour Holding and GoGas will develop a 365 MW combined-cycle power generation plant in Mauritania’s capital Nouakchott under a joint development agreement, the Egyptian-Emirati energy investment and development firm GoGas said in a statement. The facility will be fueled by the GoGas-developed offshore Banda Tevet gas field, with its first phase slated to come online by the end of 2028 with an initial capacity of 200 MW.

Why this matters: With Egyptian firms having spent years building up expertise and operational capacity from a wave of state-led infrastructure projects over the few years, local players are increasingly looking outside the country’s borders with the nearly EGP 1.2 tn public investment cap for the current fiscal year limiting fresh projects at home. But while our well-heeled Gulf neighbors are obvious expansion targets, our Africa neighbors also present a promising market, which Madkour and GoGas are already no stranger to.

Nile Sugar Company eyes USD 40 mn senior loan from the IFC

The International Finance Corporation (IFC) is mulling a USD 40 mn senior loan to Sawiris-backed beet sugar producer Nile Sugar Company for the reclamation of 13.7k feddans for sugar beet cultivation land in Minya through its subsidiary Nile Agriculture Company, according to a project summary from the lender. Half of the loan — USD 20 mn — will be financed by the IFC, while the remainder will be mobilized from other investors.

Debt window dash

Calm lasted just long enough for borrowers to sprint through it. Investment-grade US issuers sold more than USD 65 bn of bonds on Tuesday — the busiest single day on record — as companies rushed to lock in funding while markets briefly steadied on hopes that the Iran war might not widen, the Financial Times reports.

Amazon led the dash: The company launched 11 USD tranches to raise USD 37 bn, upsized from initial guidance after drawing roughly USD 123 bn in orders, while also preparing an inaugural EUR 10 bn eurosale as it leans further into debt to fund AI infrastructure.

The queue behind it was unusually crowded. Nearly 12 blue-chip issuers — including Honeywell Aerospace and the finance arms of Toyota Motor Corporation and Ford Motor Company — piled in at once, pushing issuance past the previous one-day record set when Verizon Communications sold USD 49 bn in 2013.

Why the urgency? Because in this market, windows barely stay open. One fixed-income trader told the FT that issuances have shifted from being planned “week by week to hour by hour” — stability now comes in tradable bursts.

That urgency follows a week when borrowers mostly stayed on the sidelines. Bloomberg reported that all companies preparing to tap the US market on Monday stood down, while parts of Europe’s pipeline also paused as default risks rose amid the regional war and increasing oil prices.

The repricing underneath has been quick: Europe’s iTraxx Crossover moved above 300 bps for the first time since June, and Asian investment-grade credit default swaps also widened — a reminder that investors are charging more again to insure against repayment risk.

And the cushion is thinning fast: The global high-grade credit index has already shed almost all of its 2026 gains after being up 1.6% just over a week ago, leaving issuers to borrow whenever calm returns before oil, yields, or headlines close the window again.

MARKETS THIS MORNING-

Asia-Pacific markets are a sea of red in early trading this morning after Brent crude jumped beyond the USD 100 bbl mark on reports of fresh attacks on tankers in Iraqi water, raising fears of a wider supply disruption beyond the Strait of Hormuz. It is shaping up to be an equally volatile day of trading on Wall Street, with futures down.

	EGX30	47,195	-1.2% (YTD: +12.8%)
	USD (CBE)	Buy 51.92	Sell 52.06
	USD (CIB)	Buy 51.92	Sell 52.02
None	Interest rates (CBE)	19.00% deposit	20.00% lending
	Tadawul	10,942	+0.1% (YTD: +4.3%)
	ADX	9,865	-1.3% (YTD: -1.3%)
	DFM	5,726	-2.4% (YTD: -5.3%)
	S&P 500	6,776	-0.1% (YTD: -1.0%)
	FTSE 100	10,354	-0.6% (YTD: +4.3%)
	Euro Stoxx 50	5,795	-0.7% (YTD: +0.1%)
	Brent crude	USD 100.55	+9.3%
	Natural gas (Nymex)	USD 3.26	+1.6%
	Gold	USD 5,160	-0.4%
	BTC	USD 70,348	+0.6% (YTD: -19.7%)
	S&P Egypt Sovereign Bond Index	1,031	-0.2% (YTD: +3.8%)
	S&P MENA Bond & Sukuk	152.05	+0.4% (YTD: +0.1%)
	VIX (Volatility Index)	24.23	-2.8% (YTD: +62.21%)

THE CLOSING BELL-

The EGX30 fell 1.2% at yesterday’s close on turnover of EGP 5.5 bn (16.0% below the 90-day average). International investors were the sole net sellers. The index is up 12.8% YTD.

In the green: Egypt Aluminum (+6.5%), Abu Qir Fertilizers (+6.4%), and ADIB (+5.2%).

In the red: Eastern Company (-7.5%), CIB (-3.2%), and Fawry (-2.8%).

My Morning Routine: Zeinab Hassaan, CEO of Egyptian Spinning & Weaving Company

Zeinab Hassaan, CEO of Egyptian Spinning & Weaving Company: For a special Ramadan edition of our weekly My Morning Routine column, which we are running through the holy month, we spoke to Egyptian Spinning & Weaving Company CEO Zeinab Hassaan (LinkedIn). We asked Hassaan the usual questions to find out how a successful member of the community starts their day, and threw in a few more to find out how she adjusts to Ramadan and what she looks forward to in the holy month. Edited excerpts from our conversation:

My name is Zeinab Hassaan, and I am the CEO of Egyptian Spinning & Weaving Company. Growing up in Mit Ghamr, Dakahlia, school trips to local spinning factories sparked a lifelong fascination with how raw fibers are transformed into woven fabrics. That curiosity drove me to study textile engineering — an unpopular choice at the time, but one I pursued with absolute conviction.

My morning routine in Ramadan is grounded in simplicity and family. I start the day with household chores before heading to the office, wrapping up my workday by 5:00 pm for Iftar.

I must admit, however, that I haven’t always maintained this balance. When I first stepped in to turn the struggling company around, I worked for three to four months without a single day off — not even a Friday — to achieve a year’s worth of progress. I quickly realized this relentless pace was severely draining my mental energy. As a naturally social person, I have started pulling back slightly to focus on my extended family and inviting friends to my home. Today, I fiercely protect my weekends, dedicating them entirely to my extended family and friends — my true sources of happiness.

My career is rooted in a blend of academic and practical experience in both the public and private sectors. After navigating the challenging balance of raising a family while earning my master’s and PhD from the Faculty of Engineering at Alexandria University, I began my professional career as an engineer and eventually transitioned into consulting. Over the years, I worked with affiliates of the Industry Ministry, while simultaneously serving as certified trainer for international agencies, and held the role of non-executive chairperson for a public sector enterprise. Three years ago, I consulted for the Egyptian Spinning & Weaving Company. I proposed a comprehensive turnaround strategy and was subsequently appointed CEO to execute it.

People often ask a pressing question: How can a woman successfully lead a company in the spinning and weaving sector? It is unusual in this sector due to the difficulty of its operations; the factory environment is demanding and male-dominated, particularly in spinning mills. My advice to young female professionals is this: genuine passion breaks down these barriers. However, we must also recognize that our journey as women is not easy and requires a great deal of wisdom to navigate the competing pressures of career and family. The secret lies in learning how to effectively prioritize these roles across different stages of life.

Technical expertise is essential, but with career progression, the importance of relationships and a general understanding of everything related to the industry and the economy emerges. This diverse experience is acquired through working in different places and varied study. This blend of field expertise and strategic relationships grants me the ability to read the market and make immediate decisions with flexibility in dealing with market variables. This is where the importance of cumulative experience shines, gained through a long career.

We are currently navigating complex global economic shifts. Despite a looming global recession, I see a golden opportunity for Egypt’s textile sector. As manufacturing pivots away from Turkey and China, Egypt is emerging as a premier hub, bolstered by our proximity to Western markets, abundant labor and raw materials, and competitive energy costs. To capitalize on this, we must optimize our use of domestic cotton and pivot aggressively toward exporting high-value finished products. Furthermore, we urgently need a unified regulatory body for the whole industry, with a source of accurate data for everything related to this industry. Accurate analytics are critical for informed decision-making, streamlining supply chains, and maximizing our export potential.

I view success as a holistic ecosystem. Professional and personal achievements do not compete; they are symbiotic. When you approach success methodically and honestly, you realize that a stable home life anchors your professional ambitions, and career fulfillment enriches your home. The key is continuous self-reflection — constantly recalibrating your priorities to maintain that delicate balance through every phase of life.

CALENDAR

2026

MARCH

19 March: (Thursday): Eid El Fitr starts.

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

APRIL

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

12 April (Sunday): Coptic Easter.

25 April (Saturday): Sinai Liberation Day.

MAY

1 May (Friday): Labor Day.

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

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

JUNE

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

JULY

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

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

AUGUST

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

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

SEPTEMBER

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

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

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

OCTOBER

6 October (Tuesday): Armed Forces Day.

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

DECEMBER

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

EVENTS WITH NO SET DATE

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings.

2027: Egypt-EU Summit 2027.

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

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

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