Good morning, folks. It is looking like a calm day for business news in Egypt, with privatization leading the news well as the government gears up to offer a handful of fresh investments in Cairo’s historic center. And while we’re on the topic of investments, the state is also looking to position Galala City as an attractive investment destination, namely to GCC and East Asian investors.

PSA-

WEATHER- Cairo is in for another foggy morning, the Egyptian Meteorological Authority warns. Other than fog, the capital is in for a high of 27°C and a low of 17°C, according to our favorite weather app.

It’s a little cooler in Alexandria, which is in for a high of 24°C and a low of 17°C.

WATCH THIS SPACE-

#1- It looks like the EGX could be kicking off the new year by launching its much-anticipated derivatives market, with the exchange planning an “early” 2026 launch, an official from the stock market told EnterpriseAM. EGX Chairman Islam Azzam said trading is expected to launch in January 2026 in comments to Hapi Journal, following the board approving the licensing and forwarding the proposal to the FRA.

The EGX, FRA, and Misr for Central Clearing are also wrapping up technical preparations for short selling, which Azzam expects will go live in 1Q 2026. He added that the FRA’s market-maker mechanism is also moving toward activation soon.

SOUND SMART- Derivatives are financial contracts whose value is linked to an underlying asset, such as stocks, bonds, commodities, or interest rates. Common types include futures, options, forwards, and swaps. They are crucial in capital markets because they allow investors and companies to hedge risk, speculate on price movements, and enhance liquidity. Derivatives are also relevant to short selling because they can replicate or facilitate short positions — for instance, put options or futures contracts allow investors to profit from declines in asset prices.

The move would bring the EGX in line with regional peers that already operate listed derivatives markets. Saudi Arabia introduced its exchange-traded derivatives market in August 2020, and Abu Dhabi’s ADX followed in November 2021 with single equity futures.

#2- The Oil Ministry signed a USD 4 bn agreement with US-based Hartree Partners for long-term LNG supplies, US Deputy Secretary of State Christopher Landau said on X. The agreement is a sizable part of the USD 10 bn in LNG agreements soon to be inked, extending to 2027 with a range of supplies to cover demand, a government source told EnterpriseAM when asked about the story.

The agreement comes as contracts with Aramco, Trafigura, and Vitol are set to expire in mid-2026; and with renewals contingent on global market conditions, diversifying the supplier base was critical to securing more competitive pricing, the source said.

Deliveries are set to start early next year, starting at a slower pace before increasing in the second half to meet peak demand, the source added. He also noted that Egypt imported half of its gas needs this year from the US via spot shipments, making it the world’s second-largest buyer of American LNG.

Sources told us last week that up to 20 LNG shipments are expected before year-end, with new cargoes being secured through tenders with approved suppliers. Looking ahead, our LNG requirements for next year are estimated at 120-125 shipments, we were told.

#3- Positioning Galala as an attractive investment destination: The Madbouly government is finalizing its promotional plan for investments in Galala City, according to a statement by the General Authority for Investment and Freezones (Gafi). The plan puts the city on Egypt’s investment map, highlights potential investments in all international promotional visits, particularly to the Gulf and East Asia, and builds toward an international conference to showcase these investments, Gafi CEO Hossam Heiba said.

What sort of investments are we talking about? The projects Gafi is looking to promote to investors include a yacht marina, coastal hotel, water park, Galala Hospital, upscale residential district, Downtown Avenue, and more hotels and resorts. The projects will be available under various investment models, including public-private partnership, usufruct, ownership, management, and operation.

About Galala: Galala City is a state-led national development project overseen by the Armed Forces Engineering Authority. It includes the city itself, alongside Galala University, the Galala and Ain Sokhna-Zafarana roads, and a tourist resort that overlooks the Gulf of Suez.

We’ve heard of the marina before, with the Transport Ministry in January holding a tender targeting private players to operate the marina as part of Egypt’s broader strategy to become a global yacht tourism destination. The marina will accommodate 600 yachts and boats and feature a large hotel catering to yacht and beach tourism. The government plans to raise USD 3 bn a year from yacht tourism by the fiscal year 2028-29.

#4- Egypt, Vietnam explore freetrade agreement: Prime Minister Moustafa Madbouly met with his Vietnamese counterpart Pham Minh Chinh, on the sidelines of the G20 summit in Johannesburg, where they discussed potentially signing a bilateral freetrade agreement, according to a cabinet statement. The two leaders discussed enhancing investment and trade cooperation, with Madbouly highlighting Vietnam’s growing footprint in Egypt, while Chinh said a trade pact could allow Egyptian goods to reach Asian markets.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at why Egyptian textile exports are up in 2025, and how tariffs seem to be helping. Check out the story here.

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THE BIG STORY ABROAD-

The US proposal to end the war in Ukraine is dominating headlines this morning. US and Ukrainian officials who met yesterday in Geneva said they made progress on a new version of the controversial 28-point plan that would have seen Ukraine acquiesce to most of Russia’s territorial and military demands. It’s still unclear what issues have been resolved during the talks, which come at a difficult moment for Kyiv after slowly losing ground against Russia in a number of key regions. (Reuters | Financial Times | Bloomberg)

CLOSER TO HOME- A high-profile strike by Israel on Beirut — the first in months — killed militant group Hezbollah’s acting military chief of staff Haytham Ali Tabatabai. Some fear the strike could be paving the way for a renewed offensive campaign on Lebanon to force Hezbollah to disarm. (Washington Post | Reuters)

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at the launch of the first AI-powered virtual platform for Egyptian students abroad.