Government preparing to raise minimum wage, tax thresholds, pensions in new package

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What We're Tracking Today

EGX to welcome as yet unnamed real estate player this month

Good morning, folks. It’s already shaping up to be a busy week for local business news — and mostly welcome news for a change. In today’s issue, we’ve got news of a potentially 11-digit Chinese investment, inflation falling to a two-year low, yet another digital outsourcing project getting off the ground, and more. We’re short on digital ink in this morning’s issue, so let’s jump right in.

PSA-

WEATHER- It’s another sunny and crisp day in Cairo today, with a high of 21°C and a low of 12°C, according to our favorite weather app.

It’s a similar story in Alexandria, with a high of 21°C and a low of 10°C.

There’s also a chance of fog across large parts of the country tomorrow, so take care on the roads this morning.

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

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WATCH THIS SPACE-

#1- A mystery real estate giant from the private sector will be joining the EGX this month, EGX boss Ahmed El Sheikh told Asharq Business without giving us much to identify the as yet unnamed company.

El Sheikh also announced that the bourse is gearing up to launch two new indexes, including a sustainability index in mid-2025, and another sharia-compliant sustainability index in 1H 2025.

The EGX could also soon welcome three new special purpose acquisition companies – known more commonly as SPACs — with the companies currently preparing to submit applications to the Financial Regulatory Authority to list their shares on the EGX, El Sheikh told Hapi Journal. The companies are following in the footsteps of Impact investor Catalyst Partners’ SPAC, Catalyst Partners Middle East, which became Egypt’s first SPAC to trade on the EGX in November.

#2- A blackout-free summer in 2025? Egypt has secured enough energy supplies to ensure that the nation’s power plants can run at full capacity when the summer season approaches and demand jumps, Electricity Minister Mahmoud Esmat told Asharq Business. To keep the lights on and ACs whirring away, the government will increase natural gas supplies to power plants by 9% y-o-y to 4.9 bn cubic feet per day.

HAPPENING TODAY-

#1- Foreign Minister Badr Abdelatty is in Riyadh to discuss developments in Syria, according to a Foreign Ministry statement. The discussions will explore ways to support a comprehensive Syrian-led political process that meets the aspirations of the Syrian people while preserving Syria's stability, unity, security, and sovereignty over its territories.

#2- MPs will once again spend the day discussing and voting on articles of the draft Criminal Procedures Law, which has been with the House for the last few weeks as they work through the 540-article bill.

DATA POINT-

Morocco has unseated Egypt as Africa’s most visited country, with its 17.4 mn tourists in 2024 standing considerably above Egypt’s 15.7 mn for the year, according to the country’s Tourism Ministry.

THE BIG STORY ABROAD-

The devastating wildfires in Los Angeles are continuing to dominate the global press this morning, with the prospect of increased wind speeds looking set to make an already out of control situation even harder to contain. Firefighters have been battling six separate wildfires across the country, which have so far taken 16 lives and laid waste to thousands of homes. (Wall Street Journal | Financial Times | Reuters | Associated Press | New York Times | Guardian)

Some are already picking up on the colossal and potentially impossible challenge this will present to the ins. industry, with Bloomberg addressing the costs and the implications of the “what’s almost certain to become the costliest wildfire in US history.” Early estimates on Thursday by JPMorgan were already forecasting insured damages reaching USD 20 bn and beyond, leading some, including climatologist Daniel Swain, to ask “Could a single event cause insurers to become insolvent? That’s the great fear.”

Our part of the world is also ranking high on the world’s digital front pages this morning, with news that Shin Bet domestic security chief Ronen Bar and other senior Israeli officials will head to Doha for ceasefire talks. Donald Trump’s Middle East envoy Steve Witkoff has also been in the region to purportedly work towards an agreement, with the incoming president warning that there will be “all hell to pay” if all the Israeli hostages are not released by the time he is inaugurated on 20 January. (Associated Press | Financial Times | Bloomberg)

TikTok’s ongoing battle with US legislators is once again topping the business press, as the Supreme Court hears arguments over a law requiring its Chinese parent ByteDance to divest the platform by 19 January or face a nationwide ban due to concerns of Chinese influence. TikTok's legal team has argued the law violates the First Amendment and warned that it could set a precedent for targeting other companies. (Reuters | Financial Times)

Somabay Golf Course has become the first golf course in Egypt and one of only four in Africa to earn the prestigious GEO Certified® status. This global recognition highlights Somabay’s leadership in sustainability, with initiatives like solar-powered desalination, wastewater treatment, modern irrigation systems, and eco-friendly grass.

This milestone underscores Somabay’s commitment to sustainable excellence and its position as a premier sports destination.

Egypt is preparing to raise the minimum wage, tax thresholds, social protection coverage, and pensions in new social protection package

Gov’t readies new social protection package: The Madbouly government’s new social protection package that Prime Minister Moustafa Madbouly teased at his most recent weekly presser will contain raises in the minimum wage, tax thresholds, social protection coverage, and pensions, two government sources told EnterpriseAM. The package is expected to be approved by March or after receiving directives from the presidency, our sources said. Here’s what we expect the package to include:

#1- Another round of wage hikes: The government is planning on raising the minimum wage for civil servants and workers at state-owned enterprises. While the size of the increase has not yet been decided on, our sources anticipate the government to opt to raise the minimum wage by EGP 1k to EGP 7k, with adjustments for other income brackets.

Remember: The government last increased the public sector minimum wage early last year, raising it by 50% to EGP 6k as part of a wider EGP 180 bn social support package. The private sector minimum wage also rose 71% to EGP 6k last year, bringing it in line with the public sector

#2- Raising the income tax exemption threshold: The Finance Ministry is looking into raising the personal income tax exemption threshold to EGP 65k — up from EGP 60k previously — while keeping other income brackets unchanged, our sources said.

#3- Expanding Takaful and Karama: The government intends to increase the number of beneficiaries of the Takaful and Karama social safety program. The government is expected to add between 300k-500k families to the program, prioritizing those most vulnerable.

#4- Larger pensions: The package will also include a 15% pension increase for 13 mn pensioners.

The final price tag? It remains undecided how much the package will set back the Madbouly government, but the figure is being studied and will soon be presented by the Finance Ministry to the cabinet.

Déjà vu? Last year also kicked off with a big support package that included wage hikes, pension increases, and tax breaks to alleviate the effects of the economic crisis on citizens.

ALSO COMING SOON- The move away from subsidies and to direct cash-based assistance is also fast approaching, with the government looking to gradually start implementing the change starting from the next fiscal year starting with four governorates before applying it nationwide. The move is awaiting the National Dialogue’s proposals and the necessary data from the Supply Ministry that will help authorities decide on the amount of cash support to be disbursed, the sources told us.

Want the full story? We dove into everything you need to know about the move to cash-based subsidies in a story published last September.

China’s Asia Potash announces USD 10 bn phosphate fertilizer complex plan for Upper Egypt

China’sAsia Potash International Investment announced one of Egypt’s largest ever investments, with its recently unveiled plans to set up a phosphate fertilizer industrial complex in Upper Egypt set to have a final investment ticket of USD 7-10 bn, company representatives said during a meeting with General Authority for Investment and Freezones boss Hossam Heiba.

Just the first phase of the complex will cost USD 1.6 bn, which is expected to go live within 18 months from the start of construction and create 3k direct jobs. Representatives from the company — whose largest shareholder is the Chinese state — added that the first phase “will involve the exploration and extraction of 2 mn tons of phosphate annually, converting it into phosphate fertilizers, and exporting 100% of the production to neighboring market.” The complex will have a total annual production capacity of 10 mn tons of phosphate once all phases of the project are fully operational.

The project will stretch across large parts of Upper Egypt, with production facilities and the company’s extraction operations stretching from Luxor’s Esna to Aswan’s Sibaiyya.

Keeping the project environmentally friendly is also part of the plan, with Asia Potash planning to partner with local green ammonia producers to secure the necessary energy supplies for its complex as part of its efforts to produce environmentally-friendly fertilizers — a notoriously energy intensive operation that makes up a substantial part of our carbon emissions.

Want to know more about how China has become an increasingly important source of investment? You can check out our breakdown of Chinese investments in the country in an Inside Industry published last year here.

Egypt inflation falls to 24.1% in December, marking two-year low

Annual headline urban inflation dropped to 24.1% in December, down from 25.5% in November, according to data from state statistics agency Capmas released on Thursday. This figure marks the nation’s lowest inflation reading since December 2022 when inflation recorded 21.3%, which marked the beginning of an upwards trend that is only now starting to slow down. On a monthly basis, headline inflation also calmed, falling 0.3 percentage points to 0.2%.

Once again, food and beverage price inflation drove the trend, with the segment — the largest component of the basket of goods and services used to calculate headline inflation — falling 4.3 percentage points in December to record 20.3%. On a monthly basis, food and beverages prices fell 1.5%, marking the second consecutive month of price decreases after a 1.9% decline in November.

The dip in inflation came in line with analysts and economists forecasts, with a median poll of 13 analysts by Reuters off the mark by only 0.1 percentage points. The poll forecast inflation falling 1.3 percentage points, which some of those polled, including HC Securities’ Heba Monir explained by pointing to “relatively lower to stable vegetable and fruit prices due to seasonality.”

Annual core inflation — which excludes volatile items like food and fuel — fell 0.5 percentage points from November’s 23.7% to record 23.2%, according to the Central Bank of Egypt. On a monthly basis, core inflation rose 0.5 percentage points, recording 0.9% in December.

Remember: The central bank decided to extend its inflation targets to an average 7% ±2 percentage points by 4Q 2026 and 5% ±2 percentage points by 4Q 2028 during its latest Monetary Policy Committee meeting in an effort to “allow for more room to weather price shocks without requiring further stringent monetary tightening.” The CBE was previously targeting inflation to average 7% ±2 percentage points by 4Q 2024 and 5% ±2 percentage points by 4Q 2026.

The worst could be over, with Bloomberg writing that the slowdown suggests that “the worst effects of a recent wave of price hikes for fuel, electricity, cigarettes and other items may have passed.”

Social Impact Capital revises CIRA Education bid to 90% with increased share price offer

CIRA Education majority shareholder Social Impact Capital (SIC) is now offering a price-per-share of EGP 15.5 in its acquisition bid for the EGX-listed educational services provider, up from EGP 15.0 previously, according to a Financial Regulatory Authority statement (pdf) detailing the amended its mandatory tender offer.

Why would SIC up its offer? The Public Investment Fund-backed vehicle’s increased offer for the EGX-listed educational services provider follows a f air value study (pdf ) of the company by financial advisor BDO Keys Financial Consulting that found the fair value of the company to be EGP 10.5 bn or EGP 17.95 per share.

The amendment also canceled a clause that stipulates the voluntary delisting of CIRA’s shares within two years of the acquisition’s execution, with the company subsequently lowering its purchase offer to buy up to an additional 38.78% of CIRA’s shares — approximately 226 mn shares by our math — in a move that would bring its holding in the company to up to 90%.

The revised share price and new target bring the total value of the transaction to up to EGP 3.5 bn by our math, down from EGP 4.26 bn previously.

Remember: The FRA approved SIC’s MTO to acquire up to an additional 48.78% of CIRA last month.

Advisors: Our friends at EFG Hermes are brokering the transaction and Matouk Bassiouny & Hennawy is buy-side legal counsel.

MAFI secures USD 180 mn for its agri-food project in Sadat City

MAFI Agricultural Produce Industries is one step closer to launching its planned agri-food industrial complex in Sadat City after Beltone Investment Banking, the company’s sole financial advisor and lead financial coordinator, successfully raised USD 180 mn for the project in long-term financing from a group of local banks and equity investments from regional investors, according to a statement from syndicate leader Banque Misr.

The project secured USD 108 mn in long-term financing from a syndicate of local banks led by state-owned Banque Misr that included Suez Canal Bank and Al Baraka Bank. The remaining USD 72 mn to reach financial close was bridged by equity investments from regional investors.

The project is expected to begin operations in March 2026 — with ambitious export targets from the very start. Annual output of agri-food products is expected to reach USD 200 mn during its first phase, which will then be doubled when its second phase is up and running. The entirety of production will be earmarked for export, with target export markets including the US, Japan, Europe, and the GCC.

The government has been to try and support the project, with the industrial complex and its five planned factories being granted a golden license from the cabinet.

What they said: "This collaboration highlights our commitment to delivering innovative financial solutions and supporting our partners' growth. Financing this transformative project reinforces Egypt’s position in the global agri-food market.” Beltone Holding's deputy group CEO and Head of Investment Bank, Mohamed Aboulfadl, said.

Advisors: Beltone Investment Banking was the sole financial advisor and lead financial coordinator for MAFI. Matouk Bassiouny & Hennawy was MAFI’s legal advisor, while Sarie Eldin & Partners provided counsel for the lenders.

Spanish Konecta announces USD 100 mn Egypt expansion plans

The country’s efforts to increase its digital outsourcing exports have received a welcome boost courtesy of Madrid-based business process outsourcing (BPO) firm Konecta, which will kick off operations in Egypt, set up a regional HQ in the country, and invest USD 100 mn in the country over the coming three years under an MoU inked with the Information Technology Industry Development Agency (ITIDA), according to a cabinet statement.

Konecta will set up an Egyptian arm dubbed Konecta Egypt for Customer Service to provide outsourcing services to markets in the MIddle East, Africa, Europe, and the Americas with its headquarters being set up in New Cairo. The company is expected to provide some 3k jobs and offer a wide range of technical services that include AI solutions, digital transformation, IoT, data analytics, and multilingual customer support.

The firm also plans to set up its first global center of excellence for generative AI in Egypt, through which it plans to “transfer knowledge and expertise to Egyptian talent in areas including conversational AI, data analytics, and other emerging technologies,” according to the statement.

Remember, the government wants to see digital exports bring in USD 9 bn into the economy annually as of 2026 and then up to USD 13 bn by 2030. We’re yet to hear the most recent figures for 2024, but Egypt’s digital exports brought in USD 6.2 bn in 2023, up 26.5% y-o-y from 2022. The figure includes outsourcing exports — think call centers and human resource centers — which accounted for over half of the digital exports in 2023, standing at USD 3.7 bn, up 54% y-o-y.

Orascom Construction, Engie, Toyota Tsusho, and Eurus Energy kick off commercial operations at Ras Ghareb wind farm

The national grid just for a little greener, with 306 MW of a 650 MW wind farm in Ras Ghareb being developed by a local-international consortium of Orascom Construction, Engie, Toyota Tsusho, and Eurus Energy now online, according to a statement (pdf). The entire project is expected to be up and running and connected to the national grid by 3Q 2025.

The project is set to be the largest operational wind farm in the region once it is fully operational, according to the statement. It will reduce carbon emissions by 1.3 mn tons every year and provide power to over 1 mn homes once fully complete.

The wind farm is being developed under a 25-year build-own-operate contract by a consortium including France’s Engie — which hold a 35% stake — Orascom Construction (25%), along with Japan’s Toyota Tsusho (20%) and Eurus Energy (20%). Orascom Construction is also in charge of the project’s construction of the civil and electrical works.

We’ve been watching the project closely since the consortium broke ground on the wind project back in 2022, days before signing up to build another 3-GW wind farm.The farm was originally expected to have a capacity of 500 MW, before the consortium inked a land usufruct agreement and a PPA with the EETC and the New and Renewable Energy to add 150 MM to the farm’s capacity last September.

“The consortium has also achieved financial close for the 150 MW expansion, marking another key milestone,” according to the release. It secured non-recourse project financing from the Japan Bank for International Cooperation along with Sumitomo Mitsui Banking Corporation, Norinchukin Bank, Société Générale, and the European Bank for Reconstruction and Development. HSBC Egypt is the working capital bank and onshore security agent. The same partners helped finance the first phase of the project.

Reports of more renewables going online is welcome news for the government, who are planning to see 3-4 GW-worth of renewable energy projects go live and start feeding the national grid by next summer to fill the energy supply gap. This push is part of a broader plan to secure the country's energy needs amid declining natural gas production and expanding electricity interconnection projects to enable exports to surrounding countries. Egypt plans to source 42% of its energy from renewables by 2030.

Acwa reaches financial close on USD 1.2 bn Gulf of Suez project

Acwa reaches financial close on Gulf of Suez wind project: Renewables giant Acwa Power and Hassan Allam Utilities subsidiary HAU Energy reached financial close for their 1.1 GW, USD 1.2 bn mega wind farm in Egypt’s Suez, according to a statement. Full commercial operations are set to begin in 2Q 2027.

More on the funding: The consortium secured a USD 703.6 mn senior debt facility from a group of institutions, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank, the British International Investment Corporation, the German Investment Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation. EBRD funding was supported by a B loan structure from Standard Chartered and Arab Bank.

ICYMI: The EBRD approved a USD 275 mn syndicated loan for the project last month. The companies were reportedly set to secure close to USD 900 mn in financing by the close of 2024 for the project.

Egypt leads startup activity in Africa in 2024

Egypt continued to lead startup activity in the continent in 2024, accounting for over a third of the funding the continent received during the year despite seeing a 21% y-o-y drop, according to Magnitt's FY 2024 venture investment summary report.

The figures: Egyptian startups raised a combined USD 329 mn across 78 funding rounds during the year. MNT-Halan closed Egypt, Africa, and MENA’s largest round during the period with its USD 157.5 mn round announced in July.

Zooming out: African startups raised a total of USD 1.1 bn during the year, marking a 44% y-o-y drop in funding. Startups across the continent closed 294 funding rounds in 2024, a 39% y-o-y dip. The total number of investors in the continent and exits also dipped — the number of investors fell 18% y-o-y to 385 and the number of exits fell 27% y-o-y to 22.

Brace for a more eventful 12 months on the funding front: “2025 should be the year that some international VC capital returns to more frontier markets — think Egypt, Türkiye and Pakistan — where it has been largely absent for the last few years,” Endeavor Catalyst Managing Partner Allen Taylor said.

A glance at the region: The UAE led the region in volume of transactions with 188, capturing 41% of all MENA transactions during the year, while KSA dominated total transaction value, with Saudi startups raising some USD 750 mn.

Proposed shakeups to the education system continued to receive coverage on the airwaves

Lamess El Hadidi had a lot to say about the new Egyptian baccalaureate system last night, with the host choosing to dedicate her show to discussing the Education Ministry’s newly unveiled alternative to the Thanaweyya Amma.

“The new system is based on the ministry's previous studies and international systems, targeting two major problems — rigid academic tracks and single exam opportunities, which cause the Thanaweyya Amma nightmare and tremendous psychological, nervous, and financial pressure on Egyptian society,” Deputy Education Minister Ayman Bahaa told Kelma Akhira’s Lamees El Hadidi (watch, runtime: 45:48). The new system addresses these issues by providing multiple exam opportunities and reducing students' subject load, he added.

Next steps: The new system will be presented to the National Education Council once its board is formed and executive regulations are issued, Bahaa said.

Not about the money: Bahaa dismissed concerns about the system being designed to generate revenue, addressing the EGP 500 exam retake fee per subject after the first attempt.

The proposed system faces criticism: The new system has sparked widespread debate among Egyptian families. The Education Ministry seeks to implement it starting next academic year, despite the cabinet discussing it for only two hours before preliminary approval, with community dialogue scheduled for next Tuesday, El Hadidi said (watch, runtime: 10:08). “The decision-making mechanisms around education reveal that it unfortunately remains at the bottom of our priorities. What does it mean for the government to approve the system and announce its implementation next year, then put it up for community dialogue? Does community dialogue precede or follow decision making? And if the decision has been made, what's the need for community dialogue?"

Education policy needs stability: "Education should be state policy, not ministry or minister policy. Its most important element is stability. Countries don't change their education systems every two years...We've been in a state of continuous educational experimentation on students, families, and society for the past five years," El Hadidi said. “Each minister comes with their system...shaking Egyptian families about every year and a half. This is the highest expenditure item for Egyptian families and their only tool for social and economic advancement. We're doing all this amid a major economic crisis without considering the psychological and economic cost to people.”

Shalateen Mineral Resources Company eyes role as gold producer in 2025. PLUS: Plaza Premium Group + Egypt Aviation Services + Cairo Airport Company, Orascom Construction, International Monetary Fund

MINING-

State-owned Shalateen Mineral Resource Company plans to redirect operations to the production of gold and minerals this year, two government officials told Asharq Business. The move would mark a shift for the company which currently acts as a bridge between the gold market and the Central Bank of Egypt, buying gold from individuals and selling it to the central bank.

What’s the plan? The company will reportedly kick off exploration operations at its Eastern Desert concessions this year, they said.

The unconfirmed report follows in the footsteps of news alleging that the company will relaunch its gold exploration bid in the first half of 2025 after the offers for its four-times extended tender that came to a close in November did not meet the required criteria. The requirements entail that the company should have at least ten years of experience in mining exploration and exploitation, a work team with over 100 cumulative years of experience in the field, and at least 10 mn ounces of existing gold reserves.

AVIATION-

Plaza Premium Group (PPG) will manage, operate and commercialize six lounges at Cairo International Airport under a strategic joint venture with Egypt Aviation Services and the Cairo Airport Company, the Hong Kong-head quartered aviation-focussed hospitality firm said in a statement (pdf). In addition to the six upmarket lounges that will be rebranded as Plaza Premium Lounge by CAC and EAS, the joint venture will also set up a new lounge in Terminal 3.

Remember: The Madbouly government first revealed plans last November to invite private sector players — including foreign companies — to take over the management of airports in the country in order to improve services and increase revenues collected by the state coffers. The list of airports earmarked for the private management plan initially started with only five, but now includes all of Egypt’s airports after the government agreed last week with the International Finance Corporation to spearhead the airports privatization plan.

CAPITAL MARKETS-

Egyptian b’naire Naguib Sawiris has transferred his entire 5.8% stake in Orascom Construction to his brother Nassef Sawiris, as part of asset re-allocation among the family, and bringing the latter’s stake and entities held for his benefit in the firm up to 42.4%, the company said in a disclosure (pdf). Naguib inherited his shares in the company from his late father Onsi Sawiris in 2022 — the Sawiris family’s total ownership in Orascom Construction remained unchanged at 54.9%.

INFRASTRUCTURE-

Elsewedy Engineering Industries will carry out infrastructure for work for MBG Development’s Pukka project in the new administrative capital, the real estate developer said in a s tatement (pdf). Elsewedy will establish the project’s wastewater, water supply, rainwater drainage, irrigation, fire systems, and electricity networks under the agreement. The company did not disclose the financials of the agreement.

LEGISLATION-

Egypt will up its subscription to the IMF by 50% under a presidential decree issued by President Abdel Fattah El Sisi, according to the Middle East News Agency. The move, which was approved by the House of Representatives back in October, was then said to be worth some USD 1.4 bn and EGP 48 bn.

COMMODITIES-

The government has removed the export limit for cotton, allowing cotton producers to export the crop at full capacity, Al Arabiya reports, citing unnamed sources from a body representing cotton exporters. The government had previously set a 40% limit on exports for cotton exporters last year with the aim of securing larger quantities of the crop for local factories — a move that left local companies with a surplus of cotton by the end of last year.

Global fixed-income issuances hit a new bar of USD 10.7 tn in 2024

Global fixed-income issuances rose by 20% y-o-y to an all-time high of USD 10.7 tn in 2024, according to a recent report (pdf) by Kuwait-based financial firm Kamco Invest, citing data from LSEG.

The MENA region’s bond issuances reached a three-year high in 2024 due to a surge in corporate issuances. Aggregate bond issuances rose by 39.4% y-o-y to 141.1 bn in 2024, with governments raising USD 68.9 bn and corporate issuances increasing by 77.4% y-o-y to USD 72.2 bn. GCC issuances dominated, accounting for 73% of the MENA total, hitting a record USD 103.4 bn, up 70.9% y-o-y.

The UAE led the region and the GCC in bond issuances, with USD 49.7 bn during the year, up from USD 31.2 bn in 2023, followed by Saudi Arabia, which issued USD 30.8 bn in bonds, and Qatar, which issued USD 16.8 bn. Saudi Arabia was the biggest issuer of fixed-income instruments in the GCC region with USD 84 bn, followed by the UAE at USD 61 bn.

Total sovereign bond issuances rose to USD 33.3 bn in 2024, up from USD 20.2 in 2023. Meanwhile, GCC corporate issuances rose to USD 70.1 bn in 2024 from USD 40.3 bn in 2023.

Sukuk are still on the rise: Global sukuk issuances hit a three-year high at USD 132.5 bn, up 9.3% y-o-y, with the GCC contributing USD 82.1 bn. Saudi Arabia took the top spot at USD 54.9 bn, driven by soaring government issuances, followed by Malaysia (USD 25.7 bn) and the UAE (USD 11.1 bn).

Expect a strong year for GCC issuances: While global fixed-income issuances are expected to cool amid higher yields and elevated global debt, GCC markets could see a 2H recovery as inflation and rates stabilize. A strong pipeline of projects, along with a dip in oil prices, is also expected to drive government issuances, while sukuk issuances are set to dominate, fueled by demand for sustainable finance and ESG trends.

EGX30	29,445	-1.2% (YTD: -1.0%)
USD (CBE)	Buy 50.51	Sell 50.64
USD (CIB)	Buy 50.52	Sell 50.62
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,098	+0.1% (YTD: +0.5%)
ADX	9,495	+0.4% (YTD: +0.8%)
DFM	5,228	0.0% (YTD: +1.4%)
S&P 500	5,827	-1.5% (YTD: -0.9%)
FTSE 100	8,248	-0.9% (YTD: +0.9%)
Euro Stoxx 50	4,977	-0.8% (YTD: +1.7%)
Brent crude	USD 79.76	+3.7%
Natural gas (Nymex)	USD 3.99	+7.8%
Gold	USD 2715.00	+0.9%
BTC	USD 94,922.60	+0.3% (YTD: +1.0%)

THE CLOSING BELL-

The EGX30 fell 1.2% at Thursday’s close on turnover of EGP 2.8 bn (27.9% below the 90-day average). Regional investors were the sole net buyers. The index is down 1.0% YTD.

In the green: Sidpec (+3.5%), Juhayna (+2.4%), and Ezz Steel (+0.7%).

In the red: Orascom Construction (-4.7%), Edita Food Industries (-2.6%), and GB Corp (-2.5%).

Egyptian, Greek, and Cypriot chambers of commerce to launch the Egypt-Greece-Cyprus Business Council

Introducing the Egypt-Greece-Cyprus Business Council. The chambers of commerce of Egypt, Greece, and Cyprus inked a cooperation protocol to establish a joint business council between them, according to a statement. The council aims to boost cooperation between the three nations, increase trade exchange, and joint investments. This came during the opening session of the Egypt-Greece-Cyprus Business Forum with participation from Planning and International Development Minister Rania Al Mashat, who said that the agreement “opens promising horizons for close partnerships in various fields, especially economic, commercial, and investment sectors.” Al Mashat singled out electricity and renewable energy as key fields for partnership for the three countries.

ALSO- Security topped the agenda of Foreign Minister Badr Abdelatty’s meeting with his Somali and Eritrean counterparts yesterday, according to a joint statement. The ministers discussed implementing directives from their heads of state aimed at strengthening security in the Horn of Africa and Red Sea region, while preserving the sovereignty of regional states within the framework of international law.

What’s next: The ministers agreed to enhance coordination and prepare for a second trilateral summit between Egypt, Eritrea, and Somalia to be held at a date to be determined by the three countries.

PLUS- Egypt welcomed Indonesia’s entry to the Brics bloc as a full member, saying that it looks forward to Indonesia's participation in all areas of the bloc’s work and increasing cooperation in fields of mutual interest, according to a Foreign Ministry statement.

CALENDAR

JANUARY

15 January (Wednesday): Launch of Egypt’s first joint-stock ship waste management company in Port Said.

20-24 January (Monday-Friday): World Economic Forum Annual Meeting

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Early January 2025: Health Ministry finalizes partnership with Gustave Roussy to operate Dar El Salam Hospital.

January: CBE to launch InstaPay remittances for Egyptians abroad

January: Building permit applications in Egypt's new cities will go online

January 2025: Accor Group to open Sofitel Cairo Downtown Nile, the world’s largest Sofitel.

January 2025: Egyptian National Railways to launch tender for Tanta-Mansoura-Damietta railway line upgrades

January 2025: Food products will require food safety and validity certificates from the National Food Safety Authority (NFSA)

January 2025: Bavarian Delegation visit to Egypt

FEBRUARY

BP to bring the second well of its Raven natural gas project online, with additional production capacity expected.

Orascom Pyramids Entertainment to bring total investments in the Pyramids Plateau to EGP 1.5 bn.

Subscription period for Your Home in Egypt initiative opens.

2 February: Energy Day Conference, Cairo, Egypt.

17-19 February (Monday-Wednesday): EGYPES Technical Conference, Egypt International Exhibition Center, Cairo, Egypt.

18-19 February (Saturday-Sunday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

20 February (Thursday): Monetary Policy Committee's first meeting.

MARCH

Operation of phase one of the Amotope wind farm

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

7-10 April 2025 (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

17 April 2025 (Thursday): Monetary Policy Committee’s second meeting.

28-30 April 2025 (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

MAY

22 May 2025 (Thursday): Monetary Policy Committee’s third meeting.

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy

May 2025: French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

JUNE

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

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

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

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

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

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

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

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

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

NOVEMBER

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

DECEMBER

25 December 2025 (Thursday): Monetary Policy Committee’s eighth meeting.

December 2025: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

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

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

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

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

1H 2025: The Egyptian-US Investment Forum.

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

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

2027

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

EVENTS WITH NO SET DATE

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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