Grand Egyptian Museum to hold opening ceremony on 3 July

Tuesday, 28 Jan 2025

Grand Egyptian Museum to hold opening ceremony on 3 July

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Today at a glance

WHAT WE’RE TRACKING TODAY

Grand Egyptian Museum opening ceremony pencilled in for 3 July.

IPO

Bonyan eyes IPO on the EGX as soon as late February.

ECONOMY

Fitch sees household spending growth slowing 4.4 percentage points in 2025.

Capital markets

Nile Industrial Direct Investment Fund eyes 2Q 2025 debut.

WHAT WE’RE TRACKING TODAY

Bank of Khartoum eyes Egypt branches to serve growing diaspora.

ALSO ON OUR RADAR

Simplex plans KSA expansion with Riyadh CNC factory.

LAST NIGHT’S TALK SHOWS

Trump’s call to ethnically cleanse Gaza dominated the talk shows for a second night in a row.

PLANET FINANCE

Chinese AI model threatens US dominance with a fraction of the cost.

Going Green

What did the Environment Ministry get up to last year?

WHAT WE’RE TRACKING TODAY

Long-awaited Grand Egyptian Museum opening ceremony set for 3 July

Good morning, all. As we approach the end of the first month of the year, talk of approaching IPOs on the EGX are once again leading the conversation in the local business press. After several years of little IPO activity, stories like this are giving some hope that the local IPO market won’t be as dry in 2025.

BUT FIRST- We’ve finally been given a date for the much anticipated official opening of the Grand Egyptian Museum (GEM), with the opening pencilled in for 3 July, GEM CEO ahmed Ghoneim told Lamees El Hadidi yesterday on her show Kelma Akhira (watch, runtime: 36:20). United Media Services will organize the opening event festivities for the world’s largest museum that “may extend over more than a day, perhaps three days, a week, or even months,” he added.

PSA-

WEATHER- It’s a sunny January day in Cairo today, with a high of 20°C and a low of 12°C, according to our favorite weather app.

The skies are set to be a bit overcast in Alexandria, with a high of 20°C, a low of 11°C, and chance of light showers.

Heavy fog is forecast for the morning across most parts of the country, so take care on the roads.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

WATCH THIS SPACE-

#1- Prime Minister Moustafa Madbouly has directed officials to fast-track plans to list military-owned companies on the EGX, calling for a clear roadmap and timeline during a meeting earlier today. The PM has also tasked Investment Minister Hassan El Khatib with following up on the stake sales’ progress.

Remember: Madbouly announced last month that the government would be offering stakes in four military-owned companies during 2025, with the PM later confirming that the firms on the chopping block would include filling station operator Wataneya, bottled water company Safi, food manufacturer Silo Foods, and fuel retailer Chill Out. Wataneya and Safi are expected to IPO by mid-2025, while the IPOs for Silo Foods and Chill Out would come closer to the end of the year, Madbouly said at the time.

#2- The Entrepreneurship Ministerial Committee has settled on a definition of a startup, which they say will help support the sector’s growth and provide a legal framework to encourage venture capital investment, according to a Planning and International Cooperation Ministry statement.

The new definition will also help startups take advantage of soon-to-be announced incentive and support program, which the newly formed committee hopes will advance its ambitious plan to increase investments in Egypt’s startups tenfold to USD 5 bn in the coming period from a current USD 500 mn over an unspecified timeframe.

The committee’s four working groups have presented over 90 recommendations for supporting the sector, with input from the working groups and private sector players set to be included in the committee’s forthcoming startup charter set to be finalized in 2025.

** We have everything you need to know about the committee and the government’s plan to position Egypt as a regional startup hub in a story we published last month.

#3- Bank of Khartoum is seeking regulatory approval to enter the Egyptian market, with a paid-up capital of USD 150 mn, which it aims to increase to USD 250 mn as part of a broader expansion plan, Asharq Business reports, citing an unnamed official from the bank. The lender plans to open four branches in Egypt to serve the growing Sudanese diaspora and boost cross-border trade and investment.

IN THE HOUSE-

The 540-article Criminal Procedures Law will continue its long march through the House today, with articles 195-235 set to be discussed and voted on. Lawmakers are also set to debate and vote on an agreement with the International Bank for Reconstruction and Development focussed in improving the socio-economic conditions of the population.

Yesterday saw the House approved a EUR 318 mn loan for a high speed rail line connecting Sokhna and Marsa Matrouh from the Islamic Development Bank. An amended protocol with Russia to extend the repayment start date for the Dabaa nuclear power plant to 2031 and spread repayments out over 22 years also got the green light.

HAPPENING TODAY-

The newly formed private sector advisory committees will hold their first meeting with Prime Minister Moustafa Madbouly today — set from now on to be at least a monthly occurrence with the PM as chair — according to a cabinet statement.The six advisory committees were put together in an effort to ensure continued and deepened communication between policymakers and the private sector as the state pushes its reform drive into the new year.

** We put together a rundown of the committees and their members after the news broke last week. Read the story here.

CIRCLE YOUR CALENDAR-

Attention, healthtech startups: Pan-African healthtech initiative Investing in Innovation Africa (i3) has opened the application door for its third cohort, the organization announced in a statement (pdf). Startups have until 28 February to apply through the link on i3’s website. The selected startups will be announced on 30 April.

What’s on offer? The program — backed by the Gates Foundation, MSD, Sanofi, Cencora, Endless Foundation, HELP Logistics, and Chemonics — offers startups grants, customer introductions, and guidance to scale their businesses. i3 will select 15 startups — including 10 early-stage companies focused on healthcare delivery or product distribution and 5 growth-stage startups working in pharma care. Early stage startups will receive USD 50k grants, while growth-stage startups will get USD 225k.

i3 is well acquainted with the Egyptian market, with local startups Chefaa, UltraTeb, and Grinta having been part of previous cohorts. “Egypt stands out as a key target market for i3 due to its dynamic role as one of Africa's ‘Big Four’ tech hubs, alongside Nigeria, Kenya, and South Africa. These countries collectively attract the majority of venture capital investments on the continent, making them critical ecosystems for scaling health innovations,” a representative from the initiative told EnterpriseAM.

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

THE BIG STORY ABROAD-

Two stories are dominating headlines in the foreign press this morning:

#1- China’s response to ChatGPT, DeepSeek, wiped USD 1 tn off of US stocks yesterday, with the prospect of a cheaper and much less energy-intensive AI chatbot rattling markets and raising questions around the US’ alleged AI dominance. The startup was later hit by a cyberattack, which prompted its developers to limit registrations. We have more in Planet Finance, below. (Reuters | FT | Bloomberg)

#2- Hundreds of thousands of Palestinians returned to northern Gaza after months of displacement, following Israel’s opening of military checkpoints after a 24-hour delay caused by claims that one of the Israeli hostages meant for release had not returned. Late night talks on Sunday shored up the agreement, making way for the opening of the routes yesterday and for more hostage transfers later this week. (Reuters | Guardian | FT | Bloomberg)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We dive into the Environment Ministry’s most notable accomplishments of 2024 — launching the carbon market, preserving biodiversity, and launching new waste management initiatives.

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Grand Egyptian Museum WHAT WE’RE TRACKING TODAY

Somabay: A Community Committed to Education and a Sustainable Future

Somabay is dedicated to building a vibrant community with education at its heart through GEMS International School Somabay (GISS). As Egypt’s first GEMS school, GISS offers top-tier education via the International Early Years Curriculum (IPC) and an American diploma aligned with AERO standards. Part of the Egypt Education Platform (EEP), GISS reflects Somabay’s commitment to innovation, sustainability, and holistic development. Enroll for 2025/2026 at https://gis-somabay.com/

IPO

Bonyan eyes IPO on the EGX as soon as February

Bonyan will be making its EGX debut “by late February or, at the latest, April,” CEO Tarek Abdel Rahman said at a press conference yesterday attended by EnterpriseAM. The announcement shortly follows the Compass subsidiary and real estate invest firm receiving preliminary approval for a temporary listing last week in preparation for its upcoming IPO.

We should soon hear more about how much Bonyan is offering and for how much, with financial details of the offering set to follow Baker Tilly’s — as the independent financial advisor — completion of its fair valuation of the company within a week, Abdel Rahman said. The exact share percentage and offering proceeds will depend on the fair valuation currently underway.

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

But what we do know is that Bonyan is looking towards Egypt and the Gulf for interested buyers, with a particular focus on Saudi Arabia and the UAE for the offering’s promotional campaign.

And that 95% of the shares offered will be allocated to private placements, with the remaining 5% available through a public offering.

What’s the money for? Bonyan plans to acquire 20k-30k sqm of leasable space annually, valued at over EGP 4 bn, compared to its current 15k sqm. The company is negotiating agreements for 4-5 buildings and will prioritize administrative and logistics spaces, given rising demand. International expansion is off the table for now, as “the Egyptian market offers untapped opportunities,” Abdel Rahman said, but a future real estate fund could be on the horizon.

This comes in addition to Bonyan’s existing portfolio of 146k sqm of built-up space across ten buildings in east and west Cairo, valued at EGP 14 bn as of December 2024. The company focuses heavily on administrative buildings, which make up 73% of its leasable areas.

Abdel Rahman thinks that Bonyan will be a welcome and attractive addition to the EGX, explaining that "real estate is underrepresented on the EGX, despite contributing 18.5% to GDP over the past decade.” With real estate delivering 17% real returns over the past decade, Abdel Rahman thinks that investor appetite will be strong.

Bonyan’s CEO also thinks that the company has some important differences to other already listed real estate companies, pointing to the company’s focus on income-generating assets with strong tenants and USD-linked rental contracts, totaling around 56%. The company also avoids construction risks by acquiring fully or partially leased properties and manages to purchase assets 30-40% below market value, according to Abdel Rahman. Bonyan’s shares offer investors a liquid and flexible way to invest in real estate, Abdel Rahman said.

And it’s keen to point to its strong financials, with Abdel Rahman saying that Bonyan reported a net profit of EGP 2.9 bn in 2024, fueled by gains in property valuations and rental income. Its EBITDA margin rose to 94% in 2023 from 61% in 2021, with a 69% net income margin in 2023. The company will also allocate EGP 1 bn alongside IPO proceeds to fund future acquisitions.

For Bonyan, time is of the essence, and an IPO is a way to fast track the company’s expansion plans, as opposed to raising capital via debt or equity increases.

ADVISORS- CI Capital and Arqaam Capital are leading the IPO as coordinators and bookrunners, with Mubasher acting as the offering agent. Legal advisory is being provided by Matouk Bassiouny & Hennawy, while Baker Tilly is the independent financial advisor preparing the fair valuation.

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bonyan EGX Financial Markets IPO watch

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ECONOMY

Fitch sees household spending growth slowing 4.4 percentage points in 2025

Fitch Solutions’ research unit BMI sees real household spending growing by 3.1% y-o-y in 2025 to EGP 2.1 tn, a slowdown from the 7.5% for 2024, BMI said in its Egypt Consumer & Retail Report for Q1 2025. The notable 4.4 percentage point dip is attributed to the declining effect of a nearly 50% y-o-y spending increase on subsidies and social safety nets in the current fiscal year’s budget that came into effect in July and helped boost consumer spending.

Household spending growth is expected to stabilize in the medium term, with the research unit forecasting an annual average growth rate of 4.4% y-o-y that will hit EGP 2.4 tn by 2028.

Household spending habits could also be affected by a new social protection package, which Prime Minister Moustafa Madbouly teased earlier this month will entail increases in the minimum wage, tax thresholds, social protection coverage, and pensions, two government sources previously told EnterpriseAM. The package is expected to be approved by March or after receiving directives from the presidency, our sources said.

It’s a very different picture when not taking into account inflation, with household spending in nominal terms set to increase by nearly 21.5% to EGP 14.7 tn in 2025. BMI then expects this to be followed by an annual average of 18.5% y-o-y to reach EGP 20.8 tn by the end of 2028.

BMI also expects spending on food and beverages to jump this year, pointing to food and beverage price inflation as the primary reason. The research unit sees spending on the sector — which is expected to contribute the bulk of consumer spending in 2025 — growing by 22.3% y-o-y to EGP 5.2 tn this year, up from a growth rate of 8.2% back in 2022.

Recent data had been showing food inflation going the other way, with annual food and beverage price inflation clocking in six consecutive months of declines, coming in at 20.3% y-o-y in December after falling from 31.9% in June. On a monthly basis, food and beverages have been falling, with December recording a 1.5% decrease, marking the second consecutive month of price decreases after a 1.9% decline in November.

Clothing and footwear spending is also projected to grow, albeit at a slower pace, clocking in EGP 819.6 bn by the end of the 2025 and recording a 20.1 y-o-y growth rate, down from 34.9% in 2024. BMI attributes the expected slowdown to consumers’ disposable incomes experiencing “limited to no real gains in 2024,” coupled with more expensive imports prompting buyers to consume more locally crafted clothes and footwear.

Disposable incomes will rise, but won’t outpace inflation this year, BMI forecasts. Egypt's annual household disposable income is expected to average around EGP 185.6k in 2025 — up from EGP 155.1k in 2024. However, the bulk of the “increase in the domestic currency will be inflation driven.”

In the longer term, household incomes are expected to increase by an average of 17.5% y-o-y between 2024-2028 to reach around EGP 255.7k, outpacing BMI’s forecast of average consumer price inflation of 14.4% y-o-y for the same period. The research unit also sees the proportion of households with disposable income of USD 5k or less to fall from 89.2% in 2024 to 69.7% in 2028 “as economic activity increases and unemployment falls, supporting income growth.”

THE FUTURE OF OUR RETAIL SECTOR -

Fitch is hopeful for the future of Egypt’s retail sector, writing that “if Egypt's economy can navigate the current crisis, its middle class has the potential to become the fastest growing in the world, bearing in mind the size of the market's population. This growth in household incomes will attract new players to the retail market, which will help to consolidate and modernise the industry.”

On top of BMI’s list of headwinds facing our retail sector are the geopolitical risks, which the research unit warns could “result in a slowdown in investment activity, a reduction, a reduction in travel and tourism, and a further depreciation of the EGP.”

The anticipated subsidies’ cut will fuel inflationary pressure, squeezing household budgets and curbing spending on non-essential items, according to the report. “Inflation and the depreciated EGP have stunted income growth and will hinder the population moving up the income brackets. This will delay growth of the affluent middle class,” it added.

However, the looming monetary policy easing is seen giving our retail sector a shot in its arm, by supporting consumer spending “particularly credit-driven spending,” the report read. The sector will also benefit from investment in new malls and the growing demand from the expanding middle class. Additionally, Egypt’s young population and their spending habits will create opportunities for online retailers, and enhance demand for non-essential items over the medium-to-long term. The growing access to formal financial services will benefit consumers over the medium-to-long term. BMI also expects that “Egypt as a regional manufacturing hub, can present an interesting route to market for some retailers.”

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economy Fitch Solutions retail

Capital markets

Nile Industrial Direct Investment Fund eyes 2Q 2025 listing debut

Nile Fund draws closer to listing: Nile Industrial Direct Investment Fund is set to submit its prospectus to the Financial Regulatory Authority early next month to list on the EGX, Cairo Financial Holding (CFH) Chief Investment Officer Shady Sharaf told Al Mal. Cairo Capital Securities (CCS), the brokerage arm of CFH, is the industrial investment fund’s general partner.

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

Nile Industrial Direct Investment Fund? The National Initiative for Developing Egyptian Industry (Ebda) and Cairo Financial Holding’s brokerage arm Cairo Capital Securities (CCS) plan to launch the fund in May, marking the country’s first specialized industrial investment fund. The fund has the stated aim of investing in the industrial sector to ramp up exports and lower the country’s import bill.

With an initial closing target of EGP 2.5 bn, the fund aims to invest EGP 1.3 bn within its first six months, targeting between six to seven companies in the engineering, chemical and infrastructure supplies sectors with the aim of localizing production. Following acquisition, the fund is planning to up local component ratio in the companies under its wings to at least 60% in two or three years, with some reaching a ratio of 100%.

The PE fund is also mulling the acquisition of 20-40% stakes in local companies, with an average ticket of EGP 200-250 mn per company, and a holding period of five years.

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capital markets EGX industry Manufacturing

Startup watch

Egyptian startup Fincart raises undisclosed sum in pre-seed round

Fincart closes pre-seed round: Local e-commerce shipping services provider Fincart raised an undisclosed amount in a pre-seed funding round, according to a statement (pdf). The round was led by Plus VC and with participation from Plug and Play, Orbit Startups, Jedar Capital, and other regional investors.

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

Where the funds are going: The fresh funds will help the startup improve its technology platform, and expand its courier network to “support the fast-growing e-commerce market in Africa and the Middle East.”

Regional expansion ahead? Fincart late last year unveiled plans to expand into Gulf markets and enter North and West Africa by 2025. “We are always exploring opportunities to grow and expand our impact across regions with vibrant e-commerce ecosystems,” co-founder Mostafa Masry (LinkedIn) told EnterpriseAM. “North and West Africa are incredibly dynamic markets with significant potential, and we are committed to supporting SMBs wherever we see opportunities to create value,” Masry added.

About Fincart: Co-founded in 2023 by Nihal Ali (LinkedIn) and Masry, Fincart helps connect small businesses with local and international shipping companies, helping them scale up operations. The platform provides multi-courier shipping options, last-mile delivery services, and access to working capital.

What they said: “Our strategy is to empower small and medium online sellers to scale through a seamless platform,” Masry said. “Our platform enhances SMBs' delivery performance with a courier recommendation engine, consolidated payments, and exclusive shipping rates. Merchants benefit from improved efficiency, full coverage, and tools to drive growth and scale seamlessly,” Ali said.

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Fincart Startup watch startups

EARNINGS WATCH

NBE reports 89% bottomline growth in 3Q 2024

NBE’s net income nearly doubled in 3Q 2024: The National Bank of Egypt (NBE) reported a 88.9% y-o-y increase in net income during 3Q 2024 to EGP 47.7 bn, according to the bank’s most recent financial statement (pdf). The lender’s net interest income for the three-month period stood at EGP 77.1 bn, up 61.8% y-o-y from the same period the year before.

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

For 9M 2024: The lender’s net income rose 136.7% y-o-y to reach 118.4 bn during the first nine months of 2024. Its net interest income rose 60.6% y-o-y to record EGP 202.4 bn during the nine-month period.

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earnings earnings watch National Bank of Egypt

LAST NIGHT’S TALK SHOWS

Trump’s call to ethnically cleanse Gaza dominated the talk shows for a second night in a row

Donald Trump’s proposal to forcibly relocate Palestinians from Gaza continued to spark intense discussions on last night’s talk shows, with hosts unanimously condemning the idea. The nation’s hosts also highlighted the resilience of Palestinians as tens and possibly hundreds of thousands streamed to the north of the enclave to return to find what if anything stands of their homes.

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

“Hundreds of thousands of men, women, and children are walking on foot, carrying their great sorrows in their hearts and their few belongings on their backs,” Lamees El Hadidi said on her show Kelma Akhira while responding to the dramatic images of internally displaced Gazans packing roads northwards (watch, runtime: 8:03). The tone was somber, with El Hadidi emphasising that the hardships facing are far from over, with the returnees “returning to what remains of their destroyed homes in the north after 15 months of killing, displacement, and destruction."

“We are with you and will not abandon you,” El Hadidi said, mirroring the sentiment across many of the talk shows. “We will not succumb to any attempts to liquidate your cause. We will support you at any cost and with all we have on your journey of return and reconstruction," she added. El Hadidi also noted that a Hamas delegation is currently in Cairo to discuss the implementation of the three-phase ceasefire agreement (watch, runtime: 0:53).

Amr Adib struck a similar tone on his show El Hekaya, telling his viewers that “I don’t know of any nation in the world with such strength and determination” (watch, runtime: 26:55). “The image of Palestinians walking back to their homes will be etched in history as a testament to their perseverance,” Adib said, describing the scenes as “the best response to Trump’s calls [for displacement]”.

Ahmed Moussa reiterated Egypt’s opposition to the expulsion of Gazans or encroachments by Israel, saying on Ala Mas’ouleety that “The Egyptian people are united as one. We will defend our land," he said, emphasizing that "the Egyptian people will not relinquish an inch of Sinai’s land" (watch, runtime: 16:33).

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Gaza LAST NIGHT’S TALK SHOWS Middle East politics

EGYPT IN THE NEWS

The int’l press continue their coverage of Trump’s plan to “clean out” Gaza

Trump’s call to clean out Gaza continues to lead the conversation on Egypt in the foreign press this morning, with the all taking note of the news. President Donald Trump’s comments were met with condemnation from Egypt, Jordan, the Palestinian Authority, and others. Palestinians, according to a Hamas official speaking to Reuters, “will not accept any offers or solutions, even if (such offers) appear to have good intentions under the guise of reconstruction, as announced in the proposals of US President Trump.” (AP | Reuters | Washington Post | Guardian)

Want the full story? Check out our coverage of the story in yesterday’s issue of EnterpriseAM Egypt.

Tags:

Middle East politics

ALSO ON OUR RADAR

Simplex plans KSA expansion with Riyadh CNC factory. PLUS: Madinet Masr, Taqa Arabia, Money Fellows, Al Amal Auto

EXPANSION-

Simplex plans USD 13 mn KSA expansion: Local industrial machinery manufacturer Simplex inked an MoU with Saudi Arabia’s National Industrial Development Center to establish its first factory in Saudi Arabia that will begin operations in 1Q 2026, CEO Ahmed Shaaban told EnterpriseAM. The CNC factory planned for Riyadh will be funded by its Saudi partner.

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

REAL ESTATE-

Madinet Masr teams up with Korra Energi to accelerate constructions of Taj City: Local property developer Madinet Masr has inked an EGP 480 mn MoU with local energy solutions firm Korra Energi to expedite the construction of the developer’s Taj City project, according to a statement (pdf).

INFRASTRUCTURE-

Taqa Arabia to power the Golden Triangle Zone: Taqa Arabia is set to develop utilities for the Golden Triangle Economic Zone in Safaga, including electricity, gas, water, and waste management, under a cooperation agreement inked with the zone, a statement (pdf) reads.

FINTECH-

Money Fellows launches Egypt’s first prepaid card for money circles: Money Fellows has launched a new prepaid card for collaborative lending associations or “money circles” — known in the region as a gameya — in collaboration with Banque Misr and Mastercard, according to a Mastercard statement. The new card offers users aged 16 and above features such as online and in-store purchases, ATM deposits and withdrawals, expense tracking, and cash back on transactions. The card, available free of charge during the launch phase, is Egypt’s first prepaid card for money circles, the statement said.

AUTOMOTIVE-

Al Amal Auto to roll out BYD EVs in Egypt: Al Amal Auto, the local agent of BYD vehicles, plans to introduce the Chinese automaker’s electric vehicles to the Egyptian market in the coming months, Chairman Amr Soliman told Al Mal.

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ALSO ON OUR RADAR automotive banking dispute watch energy Fintech Madinet Masr Manufacturing Mastercard Money Fellows real estate Simplex TAQA Arabia

PLANET FINANCE

Chinese AI model threatens US dominance with a fraction of the cost

DeepSeek causes US tech rout: A China-based AI startup has thrown US dominance in the AI field into doubt after it developed competing technologies on a much smaller budget than its American counterparts, the Financial Times reports. US giant Nvidia‘s stock price fell almost 17%, wiping USD 589 bn in market cap in the biggest one-day drop ever recorded for a US company. Tech-heavy indexes took a hit, too: the Nasdaq Composite was down 3%, while the S&P 500 fell 1.5%.

A fraction of the cost: DeepSeek spent only USD 5.6 mn training its R1 model, which “performed similarly for around one-fourth of the cost,” Anthony Poo, co-founder of a Silicon Valley-based startup, told the Wall Street Journal. Silicon Valley’s tech giants spend between USD 100 mn and USD 1 bn training each model, according to estimates from Dario Amodei, CEO of US-based AI startup Anthropic.

How DeepSeek achieved it: DeepSeek’s founder, Liang Wenfeng, used proceeds from his hedge fund High-Flyer to finance DeepSeek’s research and development activities, attracting China’s top AI talent with the highest salaries offered in the country. With little more than 2k Nvidia H800 chips — US firms used tens of thousands — they developed the model while sometimes skipping steps US developers thought essential.

DeepSeek claims that the R1 model can outperform US counterparts, and the claim is not without merit. The model seems to outperform rival models on many third party tests, according to CNBC. Some believe OpenAI still has an edge, but several companies are already moving to using DeepSeek as a more cost-efficient option, WSJ reported.

US attempts to curb China’s AI advancements through sanctions seem to have had the opposite effect. China-bound Nvidia chips were capped at half speed capacity before Washington banned the export of Nvidia chips to China altogether last year. The move forced DeepSeek’s engineers to maximize the computing power of existing chips with limited resources. DeepSeek had also started stockpiling Nvidia A100 chips before the US imposed sanctions, prioritizing research and resource-pooling to develop models despite limited resources.

All in the open: DeepSeek opted to release its AI model open-source, in a departure from competition-focused US companies, which makes the rise of more and more competitors to rival US tech giants more likely. This approach might cause Silicon Valley giants to reconsider their high-cost strategies — think Trump’s USD 500 bn megaproject Stargate — in order to keep up with the changing landscape.

The regional angle: DeepSeek upending the AI market could have significant ramifications for the GCC’s AI push. Saudi has been looking to both the US and China for AI technologies, after Saudi officials negotiated with the US government to secure Nvidia H200 chips last year and an Aramco fund invested in Chinese startup Zhipu AI. Meanwhile, the UAE started receiving chips from Nvidia last September, including Nvidia’s high-performing H100 chips.

MARKETS THIS MORNING-

Asian market are slightly inching down this morning, with Japan’s Nikkei down 0.6% and Shanghai Composite down 0.1%. Meanwhile, Wall Street futures are seeing little change after DeepSeek triggered tech sell-off on Monday.

EGX30	29,742	-1.0% (YTD: +0.01%)
USD (CBE)	Buy 50.19	Sell 50.32
USD (CIB)	Buy 50.20	Sell 50.30
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,373	-0.1% (YTD: +2.8%)
ADX	9553	-0.1% (YTD: +1.4%)
DFM	5192	-0.7% (YTD: +0.6%)
S&P 500	6012	-1.5% (YTD: +2.2%)
FTSE 100	8504	+0.02% (YTD: +4.1%)
Euro Stoxx 50	5188	-0.6% (YTD: +6.0%)
Brent crude	USD 77.08	-1.8%
Natural gas (Nymex)	USD 3.68	-0.4%
Gold	USD 2771.50	-1.3%
BTC	USD 101,474.50	-3.0% (YTD: +8.4%)

THE CLOSING BELL-

The EGX30 fell 1.0% at yesterday’s close on turnover of EGP 4.1 bn (8% above the 90-day average). Local investors were the sole net sellers. The index is up at 0.01% YTD.

In the green: EFG Holding (+1.4%), Cleopatra Hospitals (+1.1%), and Faisal Islamic Bank -USD (+0.9%).

In the red: Elsewedy Electric (-3.3%), AMOC (-3.3%), and E-finance (-2.7%).

CORPORATE ACTIONS-

SIC officially increases stake in CIRA: Social Impact Capital (SIC) now owns 88.7% of CIRA Education after the transfer of 218.4 mn shares was completed, according to an EGX disclosure (pdf). SIC held a 51.2% stake in the company prior to the EGP 3.4 bn transaction.

DIVE DEEPER- Check out the ins and outs of the transaction in our previous coverage of the story.

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Published every Tuesday in EnterpriseAM.

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Going Green

What did Egypt’s Environment Ministry get up to last year?

The Environment Ministry’s most notable achievements last year: The Environment Ministry released its annual report last month detailing the achievements made during 2024 — launching the carbon market, preserving biodiversity, and launching new waste management initiatives. The report fell under the theme of Towards a Circular Economy and a Fair Green Transition.

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

2024 saw more alternative fuel used: The total volume of alternative fuels used in Egypt last year came in at 1.4 mn tons, up from 850k tons in 2023 —- the ministry reported an uptick in cement factories using alternative fuels. Cement was previously highlighted as a key component in the government’s decarbonization strategy.

It also saw the launch of Africa’s first voluntary carbon trading market in Egypt, allowing companies to issue and trade carbon certificates to be bought by other companies looking to offset their emissions.

** There’s a lot more to it: We have everything you need to know about the carbon market in a Going Green published last year.

Waste management saw investments of EGP 4-5 bn last year for 22 waste recycling factories managed by the private sector. Last year saw the launch of the country’s first construction and demolition waste recycling project courtesy of ZeroCarbon and the New Urban Communities Authority.

Also in waste management: Some 35% of the work on the Tenth of Ramadan waste treatment facility was implemented and registering 2k previously informal workers in the waste management system.

Teach them while they’re young: The environment and education ministries launched the Afforestation, Waste Separation at the Source, and Recycling in Schools initiative in October, with hopes of “instilling positive behavior among students to preserve the environment.” The initiative also aims to raise awareness among students and push them to participate in waste recycling systems.

Prioritizing biodiversity: Ministry efforts focusing on preserving biodiversity this year included the launch of the Green Hurghada project that secured USD 3 mn in funding from the Global Environment Facility. The project aims to reduce the city’s emissions and integrate biodiversity considerations into the city’s infrastructure development.

The country’s biodiversity is under threat: The biodiversity landscape in Egypt is abundant, containing over 143 types of globally important species, according to the Convention on Biological Diversity. Threats to this come in the form of pollution, habitat destruction for development, and hunting.

Moves in the right direction: Back in July, Prime Minister Moustafa Madbouly issued directives to stop turning green spaces into commercial areas, in line with the government’s 100 mn trees initiative.

Efforts to boost ecotourism: The ministry set up 51 housing units for local communities in Sharm El Sheikh’s Al Gharqana village — a popular ecotourism hub — where tourism has become a livelihood alongside fishing. Installing electricity, sewage networks, and planting trees is also part of the ongoing project.

Dive deeper: We look at what needs to happen to get ecotourism booming in Egypt in a Going Green published in 2023. Primary challenges came in the form of a lack of clear legislation, the informal nature of much of the work, and tight security measures.

Still, the sector is growing: The Environment Ministry reported that overall income generated from natural reserves increased 40% y-o-y in 2024.

The year also saw notable efforts to combat air pollution, with the ministry reducing emissions by some 334k tons through its efforts. The number of air pollution monitoring stations rose to 121 nationwide and AI technology was utilized to monitor and predict future changes in air quality.

Why this matters: Egypt’s air was deemed among the most polluted in the world in 2023 according to the IQAir’s World Air Quality Report 2023, which said that the country’s average PM2.5 concentration reached a record 42.4 — 8.5 times the World Health Organization’s annual air quality guidelines. We’ll be on the lookout for the 2024 report which we expect to be published sometime this quarter.

It was a year for more transparency: Last year saw the publication of the first Green Growth Policy Review of Egypt by the OECD. The World Bank’s Country Environmental Analysis was also published last summer. And in November, in conjunction with the World Urban Forum, the World Bank launched the Atlas of Egyptian Sustainable Cities — an initiative to assess sustainability in key urban sectors.

The ministry received global recognition for its work, with Environment Minister Yasmine Fouad making it onto Forbes’ Middle East Sustainability Leaders 2024 list. The ministry was also picked up for an ESRI SAG award i n November for its efforts applying geographic information systems for the protection and management of biodiversity. Finally, the minister received the Sheikh Zayed II Medal from the UAE’s leader for facilitating climate finance negotiations during COP28.

Your top green economy stories for the week:

Jadeed eyes regional expansion: Renewable energy solutions provider Jadeed Climate Tech plans to expand into China, Yemen, Saudi Arabia, and the UAE as part of its plan to boost its global presence. (Al Ma l)
The African Development Bank approved a USD 170 mn loan to Egypt to carry out the “second phase of a program to foster private sector development and economic diversification, with special emphasis on green growth.”
AOI’s solar panel plants goes live this year: State-owned Arab Organization for Industrialization’s (AOI) joint solar panel manufacturing project with Sweden’s Sunshine Pro is set to be operational in July of this year and have a production capacity of 1 GW-worth of panels by July 2026.

Tags:

Climate climate change Environment Ministry going green renewables

CALENDAR

JANUARY

23 January- 5 February (Thursday-Wednesday): Cairo International Book Fair, Egypt International Exhibitions Center, Cairo

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.

29 January - 8 February (Wednesday-Saturday): Business Ya Shabab exhibition, Cairo Stadium

Health Ministry finalizes partnership with Gustave Roussy to operate Dar El Salam Hospital.

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

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

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

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

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.

13-17 February (Thursday-Monday): The 10th Annual Conference of the Businesswomen of Egypt 21 Association, the Arab League HQ, Cairo.

17 February: (Monday): Cypriot President Nikos Christodoulides will visit Egypt to sign agreements to transport Cypriot gas to Egypt to be liquefied and exported.

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

Arla Foods’ deadline for Domty acquisition offer

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

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

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.

7-9 April (Monday-Wednesday): Narrative PR Summit launches 9th edition, Red Sea

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

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

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

MAY

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

Egyptian Exporters Association (Expolink) exhibition, Italy

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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