Gov’t prepares tax exemption on IPO proceeds

Wednesday, 20 Aug 2025

Gov’t prepares tax exemption on IPO proceeds

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Capital markets

Gov’t prepares IPO tax breaks ahead of next phase of privatization.

EGP WATCH

After weeks in the green, the EGP starts slipping against the USD.

What We're Tracking Today

Madbouly pitches Japanese industrial zone in SCZone.

TAX

Foreign oil firms voice concerns over plan to register crude suppliers.

Startup watch

Flat6Labs unlocks new chapter with launch of its venture capital arm.

Manufacturing

El Wazir pushes for fair cement pricing.

DEBT WATCH

Valu kicks off EGP 10 bn securitization program with EGP 460.7 mn issuance.

Also on our Radar

Apache wants to up gas production by 15%.

PLANET FINANCE

MENA M&A activity picks up y-o-y in 1H despite 2Q slowdown -EY.

HARDHAT

Low-cost carriers are shaking up the country’s aviation sector.

What We're Tracking Today

Madbouly pitches Japanese industrial zone in SCZone

Good morning, all. We have a packed issue for you this morning led by news that the government is preparing a package of incentives that will include full tax exemptions on IPO proceeds. The move will set the stage for the next wave of privatization, which we know will focus on minority stake sales via the EGX.

AND- Is it the end of the EGP’s rally against the greenback? After weeks of gains, the EGP has started slipping against the USD thanks to the usual volatility of hot money outflows and heightened demand following the recent loosening of FX restrictions.

The 2025 EnterpriseAM Egypt Forum is fast approaching, our flagship forum and part of our must-attend series of invitation-only, C-suite-level gatherings. Tap to register your interest to attend. Want to partner with us? Reach out to Moustafa Taalab at mtaalab@enterprisemea.com to discuss how you can sponsor.

PSA-

Could we finally catch a break from annoying telemarketers? The National Telecom Regulatory Authority (NTRA) will begin disconnecting phone numbers identified as making unregistered promotional calls starting Sunday, the authority said in a statement. The watchdog is urging companies and individuals who rely on marketing calls to register their lines through their operators to avoid disconnection. Citizens can report unregistered marketing calls via their telecom operators’ hotlines, NTRA’s hotline, the My NTRA app, or through NTRA's website.

This isn’t the first step the authority has taken to crack down on spam calls. A year ago, NTRA gave telemarketers one month to register mobile phone numbers used for marketing calls within a special database, allowing recipients to receive spam alerts from their service provider or NTRA.

WEATHER- After a couple of hot days, the mercury is dipping slightly today, with Cairo in for a high of 35°C and a low of 25°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 32°C and a low of 24°C.

WATCH THIS SPACE-

Madbouly pitches a Japanese industrial zone in Egypt: Prime Minister Moustafa Madbouly invited Japanese companies to establish a dedicated Japanese industrial zone in the Suez Canal Economic Zone (SCZone), according to a cabinet statement. The move would allow manufacturers to capitalize on Egypt’s strategic location at the crossroads of Africa, Europe, and Asia and leverage the country’s freetrade agreements to reach key markets with fewer customs barriers, Madbouly said.

All for the localization push: Madbouly also urged Japanese firms at the Egypt-Japan Business Council’s investment forum in Tokyo to back Egypt’s localization drive in priority sectors, including automotive, renewables, and water desalination, noting that the government is supporting these industries with incentive packages.

The investment forum also saw the signing of 12 agreements and letters of intent across education, renewables, industrial development, IT, logistics, tourism, and green energy, according to a separate statement. Among those worth noting are an agreement between the SCZone, Orascom Construction, and Japan’s Itochu Corp to develop green fuel bunkering for ships, and a pact between Toyota Tsusho and the industry and investment ministries to localize automotive and automotive components manufacturing.

Several education agreements were also signed: The Education Ministry signed a cooperation protocol with Casio Middle East to train middle school math teachers, an MoU with SAPIX to develop the math curriculum for all grades, and an MoU with Yamaha Corporation to launch a music pilot project, introducing musical instruments in 100 public schools and training music teachers to use them in the classroom. The ministry also signed a letter of intent to expand cooperation in technical education with the Japanese Education Ministry.

HAPPENING TODAY-

Vertiv’s AI Solutions Innovation Roadshow lands in Cairo today: Global digital infrastructure player Vertiv is hosting its AI Solutions Innovation Roadshow at the Dusit Thani LakeView Cairo hotel today as part of a global series to showcase AI-ready infrastructure, the company said in a press release. The event will cover how enterprises in Northeast Africa are preparing their data centers for high-performance computing and AI workloads, with discussions on liquid and hybrid cooling, power optimization, and alternative energy solutions. You can find the agenda and link to register on Vertiv’s website.

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ICYMI- Check out our Founder of the Week interview with founder and CEO of Baky Hospitality Ayman Baky here.

THE BIG STORY ABROAD-

There’s a hodge podge of stories out there this morning, none of which are dominating headlines across the international business press. Among the stories of note:

The White House is “ironing out the details” of a potential acquisition of a 10% stake in chipmaker Intel, White House Press Secretary Karoline Leavitt confirmed yesterday, following reports of the potential agreement over the past few weeks. Leavitt’s confirmation also comes after SoftBank announced earlier this week that it’s acquiring a 2% stake in the chipmaker in an agreement worth USD 2 bn. The government appears to be looking to get the stake in Intel in exchange for grants the company received under the Biden administration, with Treasury Secretary Scott Bessent saying, “The stake would be a conversion of the grants and maybe increase the investment into Intel to help stabilize the company for chip production here.” (Reuters | Financial Times)

Air Canada is gradually resuming its flight operations after reaching an agreement with flight attendants over their pay, ending a four-day strike that caused the Canadian air carrier to cancel flights and retract its full-year earnings guidance. Air Canada reportedly agreed to compensate flight attendants for their work on the ground prior to the start of a flight — including boarding passengers — and will also enact immediate pay increases for flight attendants. (CBC | Reuters)

The US and NATO are working on putting together a package of security assurances for Kyiv after the end of Ukraine’s war with Russia, after Ukraine’s Volodymyr Zelensky met with US President Donald Trump in Washington earlier this week. The package could take shape as early as this week, ahead of a potential meeting between Zelensky and Russian President Vladimir Putin. (Reuters | Bloomberg)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’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 how low-cost airlines are shaking up the country’s aviation sector.

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Suez Canal Economic Zone WHAT WE’RE TRACKING TODAY

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Capital markets

Egypt prepares IPO tax breaks ahead of next phase of privatization

Tax breaks on IPO proceeds? A full tax exemption on IPO proceeds is at the top of a package of incentives the government is preparing to boost liquidity on the EGX ahead of the next phase of its privatization program, a government source told EnterpriseAM.

Investment funds + stamp tax: Other measures on the table include expanding exemptions for investment funds and setting out clear rules for how stamp duty will be collected from both buyers and sellers, residents and non-residents alike.

The timeline: A committee that includes the Finance Ministry, the Investment Ministry, the Financial Regulatory Authority, and the EGX is expected to finalize the package before the end of the month. The changes would amend the Investment Law, the Income Tax Law, and Law 30/2023. Once complete, the EGX will begin launching the IPOs, with listings slated to start as early as September, two government sources told us.

Who’s first in line? Banque du Caire and military-owned firms Safi and Wataneya could be among the first to debut on the EGX, likely before the end of 1Q FY 2025-2026 and ahead of the IMF’s fifth and sixth reviews of our USD 8 bn program in October, we were told earlier this summer.

Next up: Sources added that food manufacturer Silo Foods, fuel retailer Chill Out, and the National Roads Company could be listed before the end of this year or in 1Q 2026, depending on market conditions. The three companies, alongside Safi and Wataneya, are currently being restructured ahead of their planned listing.

More flows into equities? The government has also been in talks with major state institutions to encourage them to deploy surplus funds into the EGX, sources said. This comes in parallel with a pipeline of larger equity transactions currently under study, the sources said.

REMEMBER- The privatization program is being reworked to focus on minority stake sales via the EGX, with the government preparing to list 10-40% stakes in several state-owned companies. Strategic sales will remain part of the plan, but on a smaller scale and limited to select industries. The state has also cut its privatization target for the fiscal year, now aiming to raise around USD 3 bn by June, down from a previous goal of USD 5–6 bn.

Tags:

capital markets debt EGX tax

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EGP WATCH

After weeks in the green, the EGP starts slipping against the USD

The USD has rebounded against the EGP, in an attempt to claw back some of its losses after a few weeks of steady declines. The USD was changing hands at EGP 48.40-48.50 at state and private banks by the end of yesterday’s trading.

These fluctuations — whether upward or downward — are normal, driven by the use of FX flows to meet investor demand, as well as the usual volatility of hot money outflows from the country, two banking sources told EnterpriseAM.

It all comes down to supply and demand: This EGP-USD exchange rate is influenced by the balance of the supply and demand for the USD. When FX flows into the local market increases, the exchange rate tends to fall, while when investor demand for the greenback rises, the exchange rate tends to rise.

This rebound of the USD could be linked to the recent loosening of FX restrictions, which resulted in the use of USD surpluses to meet importers’ requests for production, our sources noted. Lifting restrictions on using credit cards abroad and the reduction of currency conversion fees also contributed to the greenback’s rise, sources added.

REFRESHER- Last week, several lenders slashed fees and loosened restrictions that were meant to dampen demand for foreign currency used by travelers and credit card users. The measures included letting customers consume as much as USD 10k for purchases outside of the country and decreasing the markup fees on FX transactions to 3% from 5%.

The USD-EGP exchange rate is expected to remain volatile, as the greenback is likely to recover its losses with the expected decline in seasonal tourism at the end of the month, according to our sources.

For more on the recent exchange rate moves, read our previous coverage here and here.

Tags:

economy EGP watch exchange rate

TAX

Foreign oil firms voice concerns over plan to register crude suppliers

Foreign oil players aren’t happy with the government’s plan to register crude oil suppliers ahead of implementing recent VAT amendments that would see them face a 10% tax, people familiar with the matter told EnterpriseAM.

BACKGROUND- The Finance Ministry is looking into registering crude oil suppliers under the simplified system with the Egyptian Tax Authority (ETA) in the foreign suppliers registry, which would allow for reverse tax charging.

The move would see the Egyptian General Petroleum Corporation (EGPC) collect the tax and verify that the companies have paid it, which would allow foreign suppliers to deduct the sum from their tax obligations in their home countries. The EGPC will pay the VAT after collecting it from the supplier, as it is considered an indirect tax. It will also include controls for issuing electronic invoices between the EGPC and its suppliers, including foreign players and irregular suppliers.

Why are foreign firms worried? Representatives from four foreign firms — BP, Eni, Apache, and Dragon Oil — noted that registration with the Egyptian tax system is not stipulated in their agreements, seeing as petroleum agreements follow a standalone legal framework, distinct from local laws. They raised these concerns during a meeting earlier this week with Finance Minister Ahmed Kouchouk and Deputy Finance Minister for Tax Policy Sherif Al Kilani, according to our sources.

Officials vow to address this issue: Kouchouk promised to hold intensive meetings between officials from the Finance Ministry and the ETA to develop a special protocol for foreign oil companies. This protocol will exempt foreign firms from e-invoicing; instead, they will submit a simplified request and a declaration of the quantities supplied to the EGPC, not the ETA, according to our sources. The EGPC will then be responsible for registering the data to ensure the implementation of the new tax. The issue is expected to be resolved before the end of this month.

Until then, oil firms' representatives will contact the EGPC about continuing supply operations without invoices.

SOUND SMART- The e-invoicing system aims to create a centralized system that allows the ETA to monitor all commercial transactions between companies (B2B) and between companies and consumers (B2C). However, this applies only to local firms.

REFRESHER- President Abdel Fattah El Sisi last month ratified VAT amendments, which are estimated to help the government bring in an additional EGP 200 bn in tax revenues. These amendments introduce a new tax treatment for crude oil — making it subject to a 10% tax.

Tags:

Finance Ministry oil and gas tax

Startup watch

Flat6Labs unlocks new chapter with launch of its venture capital arm

Flat6Labs adopts new structure with the launch of F6 Venture: Flat6Labs launched a seed-stage investment arm, F6 Ventures, which will operate alongside its accelerator platform under the newly established F6 Group, according to a statement. To understand more about what this means, we spoke to co-founder and general partner of F6 Ventures Dina El Shenoufy (LinkedIn).

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

What changed? While Flat6Labs started off as a VC providing investments to early-stage startups, it quickly became associated with its entrepreneurship support programs for startups, helping them build an ecosystem, El Shenoufy told EnterpriseAM. This pushed the company to dedicate Flat6Labs to solely manage and provide the programs while shifting the investment aspect of its operations to F6 Ventures — where all current and future investments and funds will be housed, El Shenoufy said.

Under F6 Ventures’ belt: The new investment arm will manage six funds with over USD 90 mn in assets under management (AUM), according to the statement.

As for ownership, things are also slightly moving around: Both Flat6Labs and F6 Ventures will come under F6 Group, with El Shenoufy leading as CEO. The founders of Flat6Labs remain to be its main shareholders, with Yehia Houry (LinkedIn) now leading it as CEO. F6 Ventures will see El Shenoufy and Ramez El Serafy (LinkedIn) — both original co-founders of Flat6Labs — leading it.

The group is currently managing 300 portfolio companies, with Egyptian firms accounting for 50%. The other half is split between companies in Tunisia, Saudi Arabia, Jordan, the UAE, and Bahrain, El Shenoufy said.

An Africa Seed Fund is on the way: With the group shifting its focus toward regional investments, rather than country-specific investments, F6 Ventures aims to achieve the first close for its USD 65 mn Africa Seed Fund within the next couple of months, she said.

How it will be deployed: The fund will focus on East, West, and North Africa, with 40-50% of the fund’s investment set to go to Egypt. Meanwhile, 20% will go to North Africa, between Morocco and Tunisia, and the remaining 30-35% will be directed to East and West African countries.

Africa Seed Fund will focus on sectors with the largest scalability potential, including edutech, health tech, agritech, logistics and transportation, financial inclusivity, climate sustainability, as well as B2B and SaaS solutions, she said.

Who will finance it? F6 Ventures targets USD 20-25 mn in the first close for the fund, El Shenoufy said. “We're almost 80% there, with the IFC committing 20%. We also have commitments from the Visa Foundation and Sawari Ventures,” she added. The company is also in talks with other Egyptian institutions and a local lender, which it hopes will help the fund reach its first close by October.

Up next: The next fund is going to be a GCC mandate, which will be a merger of the existing Saudi and Abu Dhabi funds, and there are also plans to set up a Levant fund. Those two funds could potentially be merged into one, El Shenoufy explained. All these efforts are part of the group’s goal of expanding its AUMs to USD 200 mn.

Further down the line, F6 Ventures could eventually look into expanding to new markets like Turkey, Pakistan, and even Eastern Europe, El Shenoufy said. “But I think for the next three years, our focus will remain to be the Middle East and Africa,” she noted.

Tags:

Flat6Labs Startup watch startups

Manufacturing

El Wazir pushes for fair cement retail prices

Industry Minister Kamel El Wazir ordered a comprehensive study into the cost and pricing structure of the cement industry, according to a statement out yesterday following a meeting between El Wazir and top cement producers. The Industrial Development Authority and the Consumer Protection Agency will take care of the study, which will dive into production costs, income margins, and pricing mechanisms, in a bid to determine a fair retail price and curb price manipulation.

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

Prices have fallen, but not enough: While cement prices have fallen over the past few weeks, more needs to be done to ease the pressure on consumers, El Wazir said during the meeting. He acknowledged a recent downward trend but said factories need to keep ramping up output and improving efficiency to sustain the decline and bring prices closer to production-linked levels.

REMEMBER- Local cement prices fell some 25% to around EGP 4k per ton last month after producers agreed with the government to raise output in response to local and export demand. Analysts at the time estimated cement prices to fall further to EGP 3.3-3.5k per ton if idle capacity comes back online, but so far prices have remained stable at the EGP 4k per ton mark.

More production capacity is needed: El Wazir called on factories to resume idle production lines and apply for the needed licenses to increase their production capacity. He said that at least eight idle lines are currently being rehabilitated, in a move that will help drive prices down.

ICYMI- The government in July gave cement factories one month to restart idle production lines as part of a broader push to stabilize prices and meet local demand.

In a bid to ensure price stability: El Wazir called for the need for cement players to write the final price of their products on all cement bags before they are shipped to market. The price tag will need to reflect the estimated market price one month in advance.

More alt fuel use in cement production? El Wazir also added that there are talks with the cabinet over allowing all cement factories to use locally sourced alternative fuels — including agricultural and municipal waste — in a bid to reduce reliance on imported coal. This comes as part of a broader policy push to reduce coal consumption in heavy industries and expand the use of refuse-derived fuels and other low-emission fuels.

Tags:

cement Kamel El Wazir Manufacturing

DEBT WATCH

Valu kicks off EGP 10 bn securitization program with EGP 460.7 mn issuance

Valu closed its 17th securitized bond issuance, worth EGP 460.7 mn, according to a statement (pdf). The issuance is the first under the company’s newly-approved EGP 10 bn securitization program — Valu’s fourth to date. The bond is backed by a receivables portfolio assigned to EFG for Securitization, which acted as the SPV. The issuance was rated Prime 1 and matures in 12 months.

BACKGROUND- Valu closed its 16th securitized bond issuance of EGP 859 mn under its previous EGP 16 bn program in June. Two weeks later, the Financial Regulatory Authority approved its new EGP 10 bn program, allowing the company to roll out up to nine issuances, backed by EGP 13 bn in portfolios, over two years.

Who bought in: Industrial Development Bank of Egypt, Bank ABC, and Attijariwafa Bank were among the subscribers.

What they said: “This issuance marks a pivotal milestone in our ongoing strategy to diversify our funding base and strengthen our capital structure. Launching the first transaction under our newly approved EGP 10 bn program reflects our confidence in the market and our commitment to scaling responsibly. Coming on the heels of our successful listing on the Egyptian Exchange, this transaction further demonstrates our ability to access diverse capital markets and reinforces our position as a leading force in Egypt’s fintech ecosystem,” said Karim Riad, CFO of Valu.

ADVISORS- EFG Hermes acted as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger. Arab African International Bank was an underwriter and custodian. Dreny & Partners provided counsel, while Baker Tilly served as the auditor.

Tags:

debt debt watch ValU

EARNINGS WATCH

Contact Financial’s net income dips 43% y-o-y in 2Q 2025

Non-banking financial services firm Contact Financial Holding saw its normalized net income fall to EGP 97 mn in 2Q 2025, down 43% y-o-y, according to its latest earnings release (pdf). The decline was the result of a dip in income from its ins. and financing divisions. The company’s normalized net income for 1H 2025 fell by 17% y-o-y to EGP 164 mn.

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

The breakdown: The group’s financing arm saw its net income dip 30% y-o-y in 2Q 2025 to EGP 62 mn. Its ins. arm saw net income fall 89% y-o-y to EGP 8 mn during the three-month period. Looking at the half, the financing division saw its net income slip 18% y-o-y to EGP 89 mn and the ins. division saw net income decrease 35% y-o-y as elevated costs weighed on profitability.

What they said: “As we enter the second half of the year, we are optimistic that the positive momentum will continue as economic conditions improve further, and we remain confident in our ability to deliver on the group’s short and long-term targets. Our strategic goals and priorities remain unchanged, we will continue to leverage our solid business foundations and proven growth strategies to capitalize on the ongoing market recovery, with both our financing and ins. divisions well-positioned to deliver solid, sustainable growth,” the company’s management said.

Tags:

Contact Financial earnings earnings watch

EGYPT IN THE NEWS

CNN gets a firsthand look at Egypt’s stance on Gaza

In an exclusive interview while touring the Rafah crossing with CNN, Foreign Minister Badr Abdelatty reiterated that Egypt considers any mass displacement of Palestinians from Gaza a “red line” — warning that Cairo “will not accept it, will not participate in it, and will not allow it to happen.” Abdelatty said such a scenario would amount to the “liquidation” of the Palestinian cause.

Abdelatty said more than 5k aid trucks remain stuck on the Egyptian side of the crossing due to Israeli refusals to grant entry. CNN spoke with aid workers and drivers who have been waiting weeks for clearance, with some reports of medical equipment like ICU beds being rejected for containing metal components.

Tags:

Gaza

Also on our Radar

Apache wants to up gas production by 15%

ENERGY-

US oil producer Apache plans to boost its gas production in Egypt by 15% to reach 550 mcf/d in 4Q 2025, Asharq Business reports, citing an unnamed government official. The company plans to increase its production through its Western Desert concessions, which are set to add around 70 mcf/d of natural gas once upgrades are completed, the official said.

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

REMEMBER- Apache revealed in February that it plans to kick off a USD 60 mn drilling program in its Western Desert block in March, which it said at the time will ramp up its natural gas production by 80 mcf/d.

IPO WATCH-

More details on Geos’ upcoming EGX debut: Geos for Trading and Contracting is looking to raise between EGP 240-250 mn from its planned EGX listing, Investment Director Hossam Eid told Al Mal. The company plans to float around 26 mn shares — equivalent to a 25% stake — with 15% allocated to private placement and 10% to retail investors. Proceeds will go toward boosting liquidity and expanding operations.

Some shareholders will partially exit: Eid said major shareholders are preparing to sell around 25% of their stakes as part of the IPO.

REMEMBER- Al Borsa reported earlier this week that Geos is targeting a November trading debut pending FRA approval of its fair value study. The company was listed on the EGX last week with EGP 105 mn in issued capital, divided across 105 mn shares.

MANUFACTURING-

Egypt Gulf Elevators and Escalators plans to invest USD 30 mn in a new production line at its Obour City plant, Al Mal reports. The line is expected to boost output to meet rising local demand for elevators and escalators.

SPORTS-

A consortium of Chinese investors has submitted a proposal to Al Ahly Club to establish six football-focused companies with investments of EGP 1.7 bn, Al Borsa reports. The plan would see investments in football equipment manufacturing, marketing agencies, and team promotion. The projects are set to begin execution in early 2026 following Al Ahly’s board approval.

Tags:

Al Ahly ALSO ON OUR RADAR Apache capital markets EGX energy IPO watch Manufacturing oil and gas sports

PLANET FINANCE

MENA M&A activity picks up y-o-y in 1H despite 2Q slowdown -EY

M&A momentum carried through to 1H 2025 as the MENA region sealed 425 transactions worth USD 58.7 bn in the first half of the year, marking a 31% y-o-y jump in volume and a 19% y-o-y rise in value, according to EY’s latest MENA M&A Insights report.

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

Activity cooled in 2Q on trade-policy uncertainty and regional tensions, but sentiment stayed upbeat as diversification drives and growth sectors kept transactions moving. This built on last year’s steady flow and early-2025 momentum, supported by regulatory reforms and a firmer macro backdrop.

The UAE led the charge in 1H, pulling in USD 25.4 bn across sectors including chemicals, technology, industrials, and real estate. Meanwhile, Saudi Arabia booked USD 2.5 bn in 1H transactions, with sovereign-backed players driving outbound activity.

Among the largest of transactions were Borealis and OMV’s USD 16.5 bn acquisition of a 64% stake in the UAE’s Borouge and Saudi Aramco’s USD 3.5 bn acquisition of South America’s Primax. The two plays were part of a broader push that saw MENA outbound activity rise 30% y-o-y to 126 transactions worth USD 24.4 bn. The UAE and KSA alone accounted for 87% of the region’s total outbound value in 1H 2025.

Cross-border activity hit a five-year high in 1H, making up 55% of the region’s total transaction volume and 78% of value. That is 233 M&As worth USD 45.9 bn. Chemicals and technology were the star sectors, contributing 67% of cross-border transactions value.

Inbound M&A into MENA rose 53% y-o-y to 107 transactions worth USD 21.5 bn, up from USD 6.4 bn last year, with the UAE capturing 50% of inbound volume and 98% of inbound value. Austria contributed 77% of inbound value into the region thanks to Borealis and OMV’s Borouge buyout.

On the domestic front, MENA logged 192 transactions in 1H, up 22% y-o-y in volume and 94% in value at USD 12.8 bn, representing 45% of total activity and 22% of overall value, led by diversified industrials and technology. The UAE’s G42 USD 2.2 bn purchase of 40% of Khazna Data Center was the region’s largest domestic acquisition.

Government-related entities and sovereign wealth funds played an important part, with players like ADIA, PIF, and Mubadala behind USD 21 bn in transaction value across 54 transactions, underscoring their role as long-term capital allocators.

Looking ahead, “stable oil prices, ongoing infrastructure development, and a strategic focus on technology, chemicals, and industrials are creating solid foundations for sustained activity,” EY MENA M&A and ECM head Anil Menon said in the report. Throughout 2025, EY expects “intensifying competition for high-quality assets, particularly those that align with national transformation agendas and offer strategic value beyond financial returns.”

MARKETS THIS MORNING-

Asian markets are mostly in the red in early trading this morning. The Kospi is leading losses, down almost 2.0% and Japan’s Nikkei is not far behind, looking at losses of 1.6%. The Hang Seng is also in the red, while the Shanghai Composite is up 0.1%.

EGX30	36,100	+0.8% (YTD: +21.4%)
USD (CBE)	Buy 48.39	Sell 48.53
USD (CIB)	Buy 48.40	Sell 48.50
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	10,882	0.0% (YTD: -9.6%)
ADX	10,210	0.0% (YTD: +8.4%)
DFM	6,151	+0.4% (YTD: +19.2%)
S&P 500	6,411	-0.6% (YTD: +9.0%)
FTSE 100	9,189	+0.3% (YTD: +12.4%)
Euro Stoxx 50	5,482	+0.9% (YTD: +12.0%)
Brent crude	USD 65.76	-1.2%
Natural gas (Nymex)	USD 2.76	-0.3%
Gold	USD 3,359	0.0%
BTC	USD 113,1530	-2.9% (YTD: +21.0%)
S&P Egypt Sovereign Bond Index	895.04	+0.3% (YTD: +15.1%)
S&P MENA Bond & Sukuk	148.11	-0.1% (YTD: +5.8%)
VIX (Volatility Index)	15.57	+3.9% (YTD: -10.3%)

THE CLOSING BELL-

The EGX30 rose 0.8% at yesterday’s close on turnover of EGP 5.4 bn (3.4% above the 90-day average). Local investors were the sole net buyers. The index is up 21.4% YTD.

In the green: Arabian Cement (+4.4%), Qalaa Holdings (+2.6%), and Fawry (+2.2%).

In the red: Misr Cement (-2.3%), Orascom Construction (-2.0%), and Emaar Misr (-1.1%).

Tags:

M&A Watch Planet Finance

HARDHAT

Low-cost carriers are shaking up Egypt’s aviation sector

Budget airlines’ share of the region’s aviation market has doubled over the past decade, and made up nearly 30% of total seat capacity in 2024, according to a report (pdf) from global travel data provider OAG. Egyptian low-cost carriers (LCC) and the country’s position as an entry point into Africa is a large part of why regional LCC’s annual capacity growth average of 11.5% is outpacing the region’s traditional carriers’ average of only 1.4% y-o-y.

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

The boom in the region’s LCC capacity has helped make the Middle East aviation sector the second-fastest growing region globally — hiking up 5% in the post-pandemic period since 2019, according to the report finds. But despite this recent growth, the region still stands as only the sixth largest globally in terms of airplane seats, with 270 mn one way seats in 2024.

Much of this is due to increased flights in and out of Egypt — from both local and foreign LCCs. Egypt flights make up 96% of Saudi state-owned airline Flyadeal’s Africa capacity and 81% of the Kingdom’s budget airline Flynas. It’s a similar story for the UAE’s AIr Arabia with 73% of Africa traffic heading into Egypt.

Egypt has become an important part of this due to its location, with local airports functioning as a key link to the African market for regional budget carriers.

It’s little surprise that LCCs have found high demand for Egypt routes, as “cost stands out as one of the most important factors to those booking in Egypt,” Air Cairo Logistics Specialist Khaled Nour El Din told EnterpriseAM. This gives “low-cost carriers a huge advantage over other players,” he added.

Some of this demand is reflected in the expansion of Egyptian budget airways, like Air Cairo, which now counts 37 airplanes among its fleet. Its fleet by number of airplanes is now more than half of that currently run by EgyptAir, however, most of Air Cairo’s fleet are of much smaller models than the larger airplanes run by the national flag carrier. At present, Air Cairo operates nearly 200 weekly flights across 50 international and domestic locations, according to its website.

But it's expected that Egyptian budget airlines will continue to grow — much like their counterparts in the Gulf. Flaynas reported a 63% capacity increase between 2019 and 2024, while the UAE’s Flydubai experienced 56% growth. Flydubai stands as the region’s largest budget fleet, including 88 Boeing 737s, which fly 135 routes across 58 countries.

Success won’t only be found in offering a cheaper service, but filling gaps in the aviation market. While EgyptAir focuses primarily on connecting Cairo with other capital cities, Air Cairo is looking to connect other international destinations with Egyptian destinations outside of the capital, Nour El Din told us.

To make this work, Air Cairo is going to need a bigger fleet. The budget carrier is planning to more than double its fleet to more than 70 planes, Nour El Din told us. To put this in perspective, Air Cairo’s fleet only stood at just four planes five years ago.

Fellow budget airlines in the Gulf are also planning big capacity expansions, and at much larger levels. Flynas is set to boost its fleet by at least 280 jets by 2034, after it placed a USD 30 bn order with Airbus last July. Flydubai is also mulling a widebody jet order from Boeing numbering in the hundreds, according to unconfirmed reports in May.

Air Cairo is also lining up a launch for freight operations, Nour El Din told us. While the airline focuses on passenger operations at present, the airline has retained a licence to expand into cargo operations and has a dedicated cargo team, which is working on securing the company’s first cargo aircraft, he said.

The airline is also eying its own aircraft maintenance, repair, and overhaul facilities, which have until now been done by EgyptAir’s facilities. Air Cairo is mulling “opening its own maintenance, repair, and overhaul facilities in Hurghada,” Nour El Din said without disclosing further details.

Your top infrastructure stories for the week:

The government plans to attract USD 5.5 bn in foreign investment in the oil and gas sector with plans to drill 133 new oil and gas wells in FY 2025-2026. Around 70 wells are set to be drilled in the first half of the fiscal year and more than 60 wells in the second half.
Egypt and Jordan began establishing the 15 km high-capacity CoralBridge subsea cable, linking Sinai’s Taba to the Jordanian coastal city of Aqaba.
Egypt is planning to launch its new USD 1.6 bn Qena-Safagahigh-speed rail line by 1H 2026, with a consortium of Siemens Mobility, Arab Contractors, Orascom Construction, and Elsewedy Electric tapped to carry out the project, under the supervision of the National Tunnel Authority.

Tags:

Air Cairo aviation EgyptAir Hardhat tourism

CALENDAR

AUGUST

28 August (Thursday): Monetary Policy Committee meeting.

Mid-August: Launch of electronic platform to register Old Rent Law tenants.

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

Late-August: Deadline for cement factories to restart production.

SEPTEMBER

8-11 September (Monday-Thursday): EFG Hermes London Conference takes place in the British capital.

9-11 September (Tuesday-Thursday): The International Exhibition for Paper, Corrugated Board, Paperboard and Tissue Paper Industries — PAPER-ME — takes place at the Egypt International Exhibition Center.

15 September (Monday): IMF to hold its combined fifth and sixth reviews of Egypt’s USD 8 bn EFF arrangement.

24-27 September (Wednesday-Saturday): Cityscape Egypt 2025, Egypt International Exhibition Center.

The Egyptian-Moroccan Business Council to send a delegation of 23 local companies to Rabat.

The Engineering Export Council of Egypt will ship a commercial delegation to Russia to ramp up exports to European markets.

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

1 October (Wednesday): Applications for alternative housing for old rent tenants will open through an online platform or at post offices nationwide.

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

7 October (Tuesday): The 2025 EnterpriseAM Egypt Forum.

7-8 October (Tuesday-Wednesday): HACE-Hotel Expo, Egypt International Exhibitions Center.

7-9 October (Tuesday-Thursday): EgyMedica Exhibition, Cairo International Convention Center.

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

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

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

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

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

NOVEMBER

16-19 November: Cairo ICT 2025, Egypt International Exhibition Center

20 November (Thursday): Monetary Policy Committee 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 Center.

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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

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

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

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

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

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

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

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

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

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

2026

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

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

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

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

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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