GCC sovereign wealth fund to announce big-ticket project in Ras Shukeir in the coming days

Wednesday, 11 Jun 2025

GCC sovereign wealth fund to announce big-ticket project in Ras Shukeir in the coming days

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INVESTMENT WATCH

GCC sovereign wealth fund to announce big-ticket project in Ras Shukeir in the coming days.

Capital markets

Planned EGX stamp tax to be accompanied with tax, investment incentives.

Economy

Deutsche Bank gives its two cents on Egypt’s economy.

What We're Tracking Today

External debt servicing rose 37.0% y-o-y during the first half of the current fiscal year.

TAX

Tax settlement scheme expected to bring in EGP 800 bn by the end of the fiscal year.

Moves

John Saad officially takes the helm as Contact Financial CEO.

Also on our Radar

Nas raises stake in EgyFert to 51.5%.

PLANET FINANCE

Societe General becomes first bank to launch USD-backed stablecoin.

HARDHAT

What is hindering Egypt’s telecom infrastructure growth?

What We're Tracking Today

External debt servicing up 37% in 1H FY2024-25

Good morning, friends. In today’s issue of EnterpriseAM Egypt, we’ve got news of a Ras El Hekma-type project set to be announced in the coming days, a set of incentives to accompany the proposed EGX stamp tax, progress on the government’s efforts to get companies to settle late taxes, and more.

PSA-

WEATHER- The sun is once again out in force in Cairo today, with a high of 37°C, a low of 23°C, and clear skies, according to our favorite weather app.

Sunny skies are also forecast for Alexandria and along the North Coast, with a high of 30°C and a low of 20°C.

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

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WATCH THIS SPACE-

#1- External debt servicing rose 37.0% y-o-y during the first half of the current fiscal year, collectively coming in at USD 21.3 bn across the six-month period, according to data (pdf) from the Central Bank of Egypt. Driving the increase was a 56.2% rise in principal interest installments to USD 17.1 bn, despite an 8.8% fall in interest payments to USD 4.2 bn.

REMEMBER- Egypt’s total local and foreign debt repayment obligations are projected to jump around 30% y-o-y to EGP 2.1 tn in the next fiscal year, up from an estimated EGP 1.6 tn for FY 2024-2025, according to a government document seen by EnterpriseAM. While the amortization of non-equity securities and domestic loan repayments are forecast to increase, foreign debt repayment is expected to decline to EGP 483 bn in FY 2025-26 from EGP 628 bn in the current fiscal year, aligning with the Finance Ministry’s plan to reduce its reliance on external borrowing.

#2- Some 1k new hotel rooms are set to be added to the North Coast by the end of July at an investment cost of over USD 1 bn in investments, unnamed sources in the tourism industry told Al Arabiya. The current capacity stands at nearly 9k rooms across the North Coast, Alexandria, and Matrouh.

CIRCLE YOUR CALENDAR-

Some 20 Egyptian ready-made garment manufacturers are heading to Turkey next week as part of a trade mission organized by the Apparel Export Council of Egypt, board member Marie Louis told Al Borsa. The mission aims to explore new export avenues and deepen bilateral cooperation with one of the region’s top importers of Egyptian garments.

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

DATA POINT-

Egypt’s renewable energy capacity is projected to hit 31.6 GW in 2035, representing a compound annual growth rate (CAGR) of 20.4% between 2024 and 2035, according to a report by data and analytics company GlobalData. During the same period, annual renewable power generation is expected to increase at a CAGR of 19.4% to 88.9 TWh.

The growth trajectory is driven by large-scale solar and wind energy initiatives capitalizing on the country’s natural resources, including wind speeds averaging 8-10 meters per second in the Gulf of Suez and 2.8-3.2k hours of annual sunshine. The country is also seeing a surge in electricity consumption across residential, commercial, and industrial sectors, driven by population growth — a trend that makes the country an attractive destination for clean energy developers.

THE BIG STORY ABROAD-

The world’s business papers are breathing a sigh of relief following news that the US and China preliminary agreed to get their Geneva trade war truce back on track, following 20 hours of tense negotiations over the last two days in London. Although few details of the agreement have emerged, it is understood that the two world’s two largest economies agreed to solve their differences over Chinese rare earth export restrictions and US tech export controls. The agreement now awaits the sign-off from Xi and Trump. (Bloomberg | Financial Times | Wall Street Journal)

Also headlining many of the world’s digital front pages is wall-to-wall coverage of anti-immigration raid protests in the US, which have now spread to two dozen cities across the country. Trump responded to the spreading protests by threatening to respond with “equal or greater force” to protestors in LA, who he described as “animals.”

California Governor Gavin Newsom slammed Trump for taking a “wrecking ball” to the norms of American democracy in a televised address criticising the deployment of military forces to LA as both illegal and unnecessary. “California may be first, but it clearly will not end here. Other states are next. Democracy is next. Democracy is under assault. Before our eyes, this moment we have feared has arrived,” Newsom said.

*** 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 why Egypt may be losing ground in the telecom infrastructure race.

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debt WHAT WE’RE TRACKING TODAY

Somabay; every reason to fall in love.

INVESTMENT WATCH

GCC sovereign wealth fund to announce big-ticket project in Egypt’s Ras Shukeir in the coming days

The government is gearing up to announce a new Ras Shukeir project “in the coming days” involving one of the Gulf’s sovereign wealth funds, a senior government source told EnterpriseAM. The agreement — set to be the first in a series tied to the 174 sq km Ras Shukeir zone on the Red Sea — will back local sovereign sukuk soon to be issued by the Finance Ministry, whose proceeds will go towards lowering the public debt burden.

Our source framed the agreement as the start of a broader push to replicate the success of the Ras El Hekma agreement with ADQ — but with a notable difference. The area — which is slightly larger than Ras El Hekma — was formally allocated to the Finance Ministry under a presidential decree published in the Official Gazette last week for the expressed purpose of raising funds through sovereign sukuk issuances and debt reduction.

This and other future Ras Shukeir projects will use sukuk issuances as their source of funding, with the Finance Ministry set to invite regional sovereign wealth funds and other investors to subscribe to sukuk issuances tied to particular projects, we were told. The framework for this new funding mechanism will be developed in response to the planned GCC-backed projects.

The proposal lets the state “exploit the asset without disposing of it, selling it, or depreciating it,” economist Medhat Nafei said. Many types of sukuk “securitize the revenues from exploiting and investing the asset and do not grant the subscriber the right to own the asset,” he continued in response to criticism of the decision.

The government hopes this new model will revitalize the local capital market and lay the groundwork for a secondary sukuk market, making Egypt’s debt diversification strategy more resilient and investment-oriented.

“This development paves the way for similar agreements to the Ras El Hekma investment agreement, which could lower Egypt’s external debt and increase its FDIs and USD resources,” HC Securities’ Nemat Choucri told EnterpriseAM.

Details on the upcoming project are few and far between, but the area has a lot of potential for energy production — including green hydrogen — in addition to tourism and industry, our source said.

We’re also still in the dark on which GCC sovereign wealth fund will be kicking off the first project, with Saudi Arabia’s Public Investment Fund a prime suspect considering the Kingdom’s plan to convert some of its USD 10.3 bn deposits in the Central Bank of Egypt into investments. Qatar is also a likely candidate, as it agreed in April to work towards a USD 7.5 bn package of direct Qatari investments in Egypt in the near future.

Ras Shukeir has already been getting investor interest, with the cabinet approving plans to establish a green industrial zone for petrochemicals and green hydrogen in the area earlier this year. The cabinet also gave an initial nod for the Transport Ministry to proceed with contracts for a green hydrogen and green ammonia project in Ras Shukeir, along with Saudi renewables giant ACWA Power and local energy and infrastructure leader Hassan Allam Utilities’ 550 MW windfarm in the area.

The new initiative will not affect the planned international sukuk offering set to wrap by the end of this month, we were told. The Finance Ministry is still working to issue USD 1.5-2.0 bn worth of sukuk that will help repay some USD 1.5 bn of maturing 10-year bonds issued back in June 2015.

REMEMBER- Egypt is working towards attracting USD 42 bn in net FDI during the next fiscal year, with plans to increase that figure to USD 55 bn in FY 2028-2029. The considerable uptick in FDI growth is expected to be driven by increased interest from foreign investors in Egypt — particularly from Gulf countries like the UAE, Saudi Arabia, and Qatar.

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Capital markets

Planned EGX stamp tax to be accompanied with tax, investment incentives

The in-the-works stamp tax on EGX transactions should be put into place starting September, replacing the previously planned capital gains tax, a government source told EnterpriseAM. As the tax is on daily transactions, the new system can be put in place any time in a fiscal year, they added.

But to sweeten the deal, the EGX has asked for the bill to be put on hold as it readies a set of incentives to accompany the tax, two government sources told us. Meetings are ongoing to introduce amendments to the tax, investment, and capital markets laws that will cushion the impact of a stamp tax by introducing incentives to encourage more companies to list on the exchange and for others to increase their market capitalization, one of the sources told us. Once ready, the amendments will be submitted to the House for a vote.

Simplifying how the EGX works is also part of the plan, with the EGX and Financial Regulatory Authority currently working on simplifying procedures to encourage more listings, raise liquidity, and improve trading activity, another government source told EnterpriseAM. The plans also include updating how investment accounts are funded — whether via brokerages or investment fund subscriptions — and introducing new safeguards to protect the rights of minority investors through amendments to the executive regulations of the Capital Markets Act.

Changes to the EGX will also include the launch of a retail bond market, aligning with what we’ve heard previously from government sources on efforts to diversify public debt instruments. The move — which we were told is being backed by the World Bank — would allow individuals for the first time the option of purchasing government debt instruments and reduce the government’s debt service payments, we were told.

Retail bonds? A government-issued retail bond is debt that is sold directly from a government to individuals. Countries issue retail bonds like the US Savings Bonds and UK Premium Bonds as a way to borrow money from the public in exchange for interest payments or some other type of return. Unlike some other forms of debt, government-issued retail bonds are stable, predictable, and often cheaper, with the added benefit of being an effective monetary policy tool if need be.

Futures contracts will also make their entrance into the EGX, with one of the sources telling us that they are working to amend the Capital Markets Law to open the door to the derivative and tradable sukuk. Futures and the derivatives market more broadly has been on the EGX’s radar for some time, with Financial Regulatory Authority Deputy Chairman Islam Azzam saying last year that they planned to launch the addition by June of this year.

But what are derivatives exactly? Derivates are financial contracts that are tied to the value of an underlying asset — think stocks, bonds, commodities, or an index. Futures are a popular form of derivative where traders agree to buy or sell an asset on a fixed date in the future. Futures contracts let investors hedge against volatile price movements and bet on where the market will go — but they are also an inherently risky tool that can maximize returns and also losses.

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capital markets debt EGX tax

Economy

Deutsche Bank gives its two cents on Egypt’s economy following CBE’s second rate cut of the year

Deutsche Bank sees Egypt’s growth prospects improving amid the Central Bank of Egypt’s ongoing easing cycle, expecting stronger domestic demand and higher investment levels coming as a result of monetary easing, the German investment bank wrote in a research note seen by EnterpriseAM.

Stronger domestic demand and more investments will drive growth over the next two fiscal years, according to the lender. Broadly in line with others, the bank sees growth reaching 3.9% y-o-y in the current fiscal year — which while representing a recovery, still remains below its long-term average due “weaker manufacturing, disruptions in the Red Sea, and fiscal consolidation.”

Economic activity posted a strong recovery of 4.3% in the second quarter of FY 2024-2025, up 2.0 percentage points from the year prior (vs. 2.3% one year ago). The main sectors that drove growth were tourism (+18.0%), non-oil manufacturing (+17.7%), communication (+10.4%), transportation (+9.4%), and financial intermediation (+11.6%), the bank wrote.

Net exports also made their first positive contribution in over a year during the quarter, adding 1.8 percentage points to real growth during 2Q FY 2024-2025. The period also saw a 0.8% recovery in investments, led by a 35.4% rise in private sector investments that offset a 25.7% drop in public investments.

But Suez Canal losses and challenges in the hydrocarbon sector could hinder growth. Shipping tonnage through the Suez Canal fell 70.0% y-o-y to 117.5 mn tons in the second quarter of the current fiscal year. In addition, the mining sector saw a 9.2% contraction in activity y-o-y, which was attributed to “lower domestic production amid declining foreign investments in new wells and reduced enhancement of existing wells.”

The bank believes that the CBE must proceed carefully with its monetary easing cycle, citing upside risks that extend beyond the rising inflationary pressures, including a “potential FX pass-through should global and geopolitical uncertainty put additional pressures on the currency” — which could manifest in something similar to the recent EM sell-off and/or forgone Suez Canal revenue, the bank wrote. Consequently, the bank expects the CBE to cut rates by an additional 400 bps for the remainder of the year, bringing the policy rate to 20.0% by the end of 2025.

Looking ahead, growth is expected to strengthen again in FY 2025-2026 to 4.5% on the back of a boost in domestic demand driven by easing inflation and financial conditions, as well as further progress on the state asset sales program, which should boost private sector investment. This puts Deutsche Bank’s forecast for the coming fiscal year in line with the governments’ targets.

Several factors could represent risks to this forecast, however. The German lender cautions that a further slowdown in global demand could lead to lower tourism levels, worsened investor sentiment, higher borrowing costs, or a rise in inflation — all of which could lower Egypt’s growth levels in the near future.

But there are also positive developments that could change the outlook for the better, including the resumption of Suez Canal traffic sooner than expected and an uptick in the country’s extraction sector. Egypt could also find itself as an unexpected beneficiary of the global trade war, with the country’s textile sector potentially attracting investors looking to bypass much heavier tariffs on textile exporter heavyweights like Bangladesh, Vietnam, and Mexico.

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Deutsche Bank economy GDP

TAX

Tax settlement scheme expected to bring in EGP 800 bn by the end of the fiscal year

The first phase of the tax settlement initiative has so far brought in 30k requests to settle disputes and reconcile with the Egyptian Tax Authority, generating EGP 300 bn in additional revenues so far, a government source told EnterpriseAM. The source expects this figure to rise to EGP 800 bn by the end of the current fiscal year on 30 June.

Simplifying the tax system and incorporating the informal economy is an important pillar of the state’s tax plan, as it aims to increase tax revenues to EGP 2.6 tn during the next fiscal year, the source told us.

REMEMBER- The Finance Ministry last month extended the deadline for pre-2020 tax dispute requests by three months to 12 August. The decision was part of measures the Finance Ministry is rolling out to make it more attractive for businesses to settle disputes dating to before 2020, including by paying a fixed percentage of taxes owed. Businesses will be able to make those payments in four installments over a 12-month period without paying late fees or additional interest charges. This comes as part of a larger push by the Finance Ministry to widen the tax base.

The government has already begun drafting a second package of tax incentives based on community dialogue held with taxpayers and investors over the past few months, our source told us. The necessary legislation is now being drawn up, and the finalized package is expected to be launched before the end of the year, according to the source.

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Egyptian Tax Authority tax

EARNINGS WATCH

Macro Group returns to the green in 1Q 2025

Macro Group Pharma returned to the green with a net income of EGP 22 mn in 1Q 2025, swinging from a net loss of EGP 78 mn in the same quarter last year, according to the company’s latest ea rnings release (pdf). “This performance reflects a tangible rebound in demand and the success of our disciplined cost management,” said Chairman Ahmed Elnayeb.

Revenues grew 210% y-o-y to EGP 184 mn during the quarter on the back of a 209% jump on sales volumes, totalling 3.8 mn units. Exports increased some 32x to EGP 5.5 mn — to now represent 3% of revenues — as part of its international expansion strategy that will “begin delivering results from 2Q25 onwards,” according to Elnayeb.

Looking ahead: “Our focus remains on scaling volumes, driving revenue growth, and reinforcing profitability. We will continue to capitalize on our strong brand equity and market position to introduce innovative products tailored to evolving consumer preferences,” said Elnayeb.

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earnings watch healthcare Macro Group pharma

Moves

John Saad officially takes the helm as Contact Financial CEO

John Saad (Linkedin) took over as Contact Financial Holding’s CEO and managing director from Said Zater, the company announced. Saad brings more than two decades of experience in the technology and telecom sectors across Egypt, Qatar, Saudi Arabia, and the UAE, where he has held several C-suite roles. Zater will move on to a new role as vice chairman of the group’s board.

REMEMBER- The company’s board tapped Saad in March for the role shortly after Zater resigned from the position.

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Contact Financial moves

Also on our Radar

Nas raises stake in EgyFert to 51.5%. PLUS: Acciona + Development and Housing Company for Utilities

M&A-

UAE-based Nas Investment Holding finalized upping its stake in EgyFert to 51.5% from 32.4% after acquiring an additional 1.8 mn shares at EGP 102 apiece, according to an EGX disclosure (pdf). The total transaction value came in at EGP 186.8 mn. Al Ahly Pharos brokered the transaction.

Nas was initially after a much bigger stake, after the holding company submitted an MTO for up to an additional 57.5% of the fertilizers player, which would have raised its stake in the company to 90%.

CONSTRUCTION-

Spain’s Acciona and the Development and Housing Company for Utilities secured a EUR 35 mn contract for the second phase of the Gabal El Asfar wastewater treatment complex, according to a statement from Acciona. The eight-year contract between the Spanish company and the local public-private enterprise was awarded by the Construction Authority for Potable Water and Wastewater and will see the consortium rehabilitate and upgrade two plants, each with a daily capacity of 500k cubic meters.

ICYMI- We heard back in April that the third phase of the water treatment plant is in line for EUR 50 mn in funding from the French Development Agency (AFD), a EUR 1.5 mn AFD grant, and a EUR 10 mn EU grant managed by the AFD. Local media reported back in September that the government would launch an international tender for the EUR 350 mn expansion of the plant, which involves designing, installing, and operating the first part of the third phase.

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Acciona ALSO ON OUR RADAR construction EgyFert fertilizers infrastructure

PLANET FINANCE

Societe General becomes first bank to launch USD-backed stablecoin

France’s Societe General will be the first bank to launch a USD-backed stablecoin that will be publicly traded, Reuters reports, citing a statement from the company. The bank is planning to issue the stablecoin —- a crypto token pegged to hard currencies like the USD and EUR — through its digital asset subsidiary, SG-FORGE. The currency, USD CoinVertible, is set to be tradable from July and will be issued on the Ethereum and Solana blockchains under the ticket USDCV. New York-based global financial services firm BNY will act as the token’s custodian.

More on USD CoinVertible: The token will be used for cross-border payments, FX transactions, crypto trading, and collateral and cash-management. The stablecoin is set to be offered on various, as yet unspecified, crypto exchanges; however, regulatory restrictions mean it won’t be available to US investors.

This isn’t Societe General’s first stablecoin venture, with the bank’s digital arm launching a EUR-backed stablecoin in 2023. However, this marks its first USD-backed issuance, with crypto pegged to the greenback gaining traction. SG-FORGE CEO Jean-Marc Stenger pointed to growing demand for a “well-regulated, robust offering in the crypto and stablecoin space,” noting that, “at the moment, there are no other banking-related players” offering a regulated USD-based stablecoin.

Other European banks are eyeing a piece of the pie: Deutsche Bank is also considering tapping into the stablecoin market by either issuing its own asset or joining a wider initiative, Bloomberg reports. Spain’s Banco Santander was also reported to be in the early stages of launching a stablecoin. Embracing stablecoin, which is dominated by USD-pegged tokens, is seen by some as a way for Europe to reassert “monetary sovereignty” — especially through EUR-backed assets, according to the Financial Times.

This comes amid growing regulatory focus on stablecoin, with the US set to pass a bill on a regulatory framework for stablecoins, Reuters reports elsewhere. The UK government is considering easing a current ban on certain retail investments linked to cryptocurrencies, the Financial Times reports. The UK’s planned regulatory framework would also cover stablecoins.

The for and against: Detractors of the US bill fear growing stablecoin adoption would add more volatility to the market. Supporters argue more stablecoin activity will drive up demand for buying short-term government debt, as a bill would require stablecoins to be backed by short-term assets like T-bills, and therefore reduce the current fiscal pressure resulting from high levels of long-term US government debt.

MARKETS THIS MORNING-

Asia-Pacific markets are up in early trading, buoyed by optimism from a breakthrough in trade talks between Washington and Beijing over rare earth mineral exports. The Hang Seng Index, Shanghai, Kospi, Nikkei, and ASX are all in the green so far this morning — albeit by a relatively slim margin. The optimism doesn’t seem to have carried over to Wall Street yet, where futures indicate the S&P 500, Nasdaq, and Dow Jones will all open in the red.

EGX30	32,904	+0.7% (YTD: +10.6%)
USD (CBE)	Buy 49.45	Sell 49.58
USD (CIB)	Buy 49.49	Sell 49.59
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	11,005	+1.6% (YTD: -8.6%)
ADX	9796	+0.5% (YTD: +4.0%)
DFM	5599	+0.1% (YTD: +8.5%)
S&P 500	6039	+0.6% (YTD: +2.7%)
FTSE 100	8853	+0.2% (YTD: +8.3%)
Euro Stoxx 50	5415	-0.1% (YTD: +10.6%)
Brent crude	USD 66.87	-0.3%
Natural gas (Nymex)	USD 3.52	-0.4%
Gold	USD 3343.40	-0.3%
BTC	USD 109,842.90	-0.1% (YTD: +17.4%)
S&P Egypt Sovereign Bond Index	877.95	+0.2% (YTD: +12.9%)
S&P MENA Bond & Sukuk	143.84	-0.1% (YTD: +2.8%)
VIX (Volatility Index)	16.65	-1.2% (YTD: -2.3%)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 5.2 bn (10.5% above the 90-day average). Local investors were the sole net buyers. The index is up 10.6% YTD.

In the green: ADIB (+5.6%), Palm Hills Development (+4.1%), and Fawry (+3.5%).

In the red: GB Corp (-1.9%), Eastern Company (-1.6%), and CIB (-1.2%).

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banking Financial Markets Planet Finance regulation

HARDHAT

What is hindering Egypt’s telecom infrastructure growth?

Is Egypt losing ground in the telecom infrastructure race? Rising data consumption and a push for digitalization have yet to translate into investor confidence, as regulations and issues with network deployment continue to act as obstacles in face of the telecom sector’s growth, according to the GSM Association’s (GSMA) latest Igniting Mobile Investment in Middle East and North Africa report (pdf).

Financial returns are not keeping pace with soaring data demand: Growth in digital services is driving a surge in data usage, but average revenue per user remains low, according to the report. The weak returns are likely making it harder for operators to justify new investments without a clearer path to profitability.

A less-than-ideal regulatory environment: Egypt’s telecom licensing framework ranks among those less attractive in the region, particularly when compared to Gulf markets, the report finds. Some of the key structural issues include:

#1- Short-term licenses: Telecom operators face short licensing periods, the report said. Authorities need to “provide longer license periods for investment certainty and include presumption of license continuity,” progressively modernise the licensing framework, and open the door for tech-neutral licensing, it added.

#2- Lack of facilities: The association wants the government to “promote the adoption of digital technologies across various sectors and applications in public service delivery to stimulate citizen demand for e-government solutions.” Governments should also create an environment suitable for partnerships between telecom players and fintech firms.

#3- No framework for infrastructure sharing: The lack of regulation around infrastructure sharing raises rollout costs and delays expansion into underserved areas.

#4- The regulatory framework: The report highlights the need to cut down on regulatory intervention, seeing as “competitive markets with different commercial offerings and information that allow consumers to make informed choices are best able to deliver the quality of mobile service.”

#5- The tax burden: The report recommends that the telecom sector “be taxed under a broad-based tax regime rather than through sector-specific levies.” Egypt should be doing more to improve the sector-specific revenue-based levies on operators and duties on consumers, according to the report.

Gulf markets lead on investor-friendly regulation: The UAE, Saudi Arabia, Oman, and Qatar top the region in telecom investment attractiveness, thanks to long-term licensing, open-access fiber policies, and more flexible regulatory frameworks. Egypt, by contrast, ranks above only a handful of North African peers and continues to lag behind in financial inclusion.

Falling behind on regional metrics: Egypt ranks near the bottom of the region when it comes to adopting digital payments, according to the report. Despite its sizable consumer base, it is outpaced by its GCC neighbors, Morocco, Jordan, and Iraq.

The GSMA is calling for regulatory reforms to unlock telecom investment in Egypt. The association recommends extending license durations and streamlining sector fees. It also urges regulators to ease fiber rollout through a clear right-of-way framework, enable infrastructure sharing, lift spectrum restrictions, adopt technology neutrality, and deepen collaboration with fintech firms to boost digital payments and financial inclusion.

The government is allocating a significantly smaller share of next fiscal year’s budget to the telecom and IT sectors — despite their position as the fastest-growing segment of the economy. The ICT sector will receive EGP 13 bn in public investment during the fiscal year 2025-2026, down from EGP 85 bn this year. Spending will continue to prioritize telecom infrastructure, digital transformation, digital skills and capacity-building initiatives, IT industry localization, improving cybersecurity, and growing exports of outsourcing and consulting services.

Telecom players are laying the groundwork for expansion: E& Egypt is set to invest up to EGP 18 bn this year as part of its strategy to expand services and strengthen its network, Chief Corporate Affairs Officer Hossam ElMeadawy said during a presser earlier this year. Vodafone is also gearing up to invest over EGP 10 bn in 2025, with a focus on expanding its telecom tower network. Meanwhile, Orange aims to raise its infrastructure spending by 50% y-o-y to EGP 15 bn.

ICYMI- The country’s network operators launched 5G services last week.

The sector has seen significant growth over the past decade, backed by sustained investment in network infrastructure and the expansion of services to reach mns of users. Mobile operators have poured some USD 2.7 bn into frequency and license acquisitions since 2019 — a signal of local and foreign investor confidence in Egypt’s digital agenda, ICT Minister Amr Talaat said in May. The ministry is coordinating with operators on a phased 5G rollout, prioritizing major cities, key highways, and strategic economic zones to tap the technology’s potential for development and enhance Egypt’s global competitiveness, Talaat added.

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Hardhat TELECOMS

CALENDAR

JUNE

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

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

Realme to open smartphone factory

IFC President Makhtar Diop to visit Egypt

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum

July 2025: The first operational trail of Egypt-KSA electricity interconnection line

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

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

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

SEPTEMBER

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

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

OCTOBER

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

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

NOVEMBER

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

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

DECEMBER

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

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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

2Q 2025: Safaga Terminal 2 to start operations

1H 2025: EGX launches a sharia-compliant sustainability index.

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2026

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

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

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

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