Heavy investor interest sees United Bank’s retail tranche oversubscribed 59x

Wednesday, 4 Dec 2024

Heavy investor interest sees United Bank’s retail tranche oversubscribed 59x

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IPO

United Bank’s retail tranche 59x oversubscribed as subscription period closes.

ECONOMY

Egypt’s non-oil private sector activity contracts at slowest pace in three months.

Digitization

Banque Misr concludes Egypt’s first ever public sector online real estate auction with Belmazad.

Energy

AfDB backs Hassan Allam and ACWA’s Gulf of Suez mega windfarm with USD 170 mn loan.

LEGISLATION WATCH

House pushes Criminal Procedures Law vote, approves host of energy exploration bills, and more in packed session.

LAST NIGHT’S TALK SHOWS

Trump’s threat to bring “hell” to the region continued to command the airwaves.

ALSO ON OUR RADAR

Holding Company for Roads and Bridges looks to secure USD 500 mn worth of Iraqi rail projects.

PLANET FINANCE

Rate cuts ahead, but not necessarily in December.

HARDHAT

The cyber threats facing Egypt and how to address them.

WHAT WE’RE TRACKING TODAY

Government to kick off the new year with a port privatization push?

Good morning, folks. As we near the end of the first week of December, it looks like we might be in for a busy few weeks in terms of local business, finance, and economy news until the end of the year. In today’s packed issue of EnterpriseAM, we’ve got important IPO updates, a health check for the country’s private sector, an auction first for the country, renewables financing, and more — so, let’s get started.

PSA-

WEATHER- It’s another cool and overcast day in Cairo today, with a high of 22°C and a low of 14°C, according to our favorite weather app.

Intermittent showers are forecast for Alexandria, with a high of 23°C and a low of 11°C.

** 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-

Government to kick off the new year with a port privatization push? The government is planning on offering up stakes in its majority-owned Port Said Container and Cargo Handling Company (PSCCHC) and Damietta Container and Cargo Handling Company (DCHC) on the EGX during the first quarter of 2025, informed sources told Al Mal. PSCCHC’s offering is expected by February, with DCHC’s slated to kick off by March or April at the latest, the sources note.

The sources expect the government to offer 20-25% stakes in each company, with the IPO’s private placement focused on attracting major companies like the UAE’s AD Ports and DP World.

HAPPENING TODAY-

Deloitte’s Egypt Tax Conference 2024 begins today in Cairo, bringing together tax professionals, policymakers, and industry leaders to explore Egypt’s evolving tax landscape. The one-day event will tackle topics including AI-driven tax solutions, bilateral tax treaties, and new government incentives designed to attract investment and fuel growth.

It’s day two of Food Africa 2024, Africa’s largest food and beverage trade exhibition, at the Egypt International Exhibitions Center in New Cairo. The three-day event brings together 900 wholesalers, distributors, and retailers in food and beverage industries from 32 countries across the world.

THE BIG STORY ABROAD-

The global press started the week speculating about the possible fall of the government in Syria, then France, and now South Korea, with President Yoon Suk Yeol’s unexpected imposition of martial law quickly rescinded after a parliamentary vote — including dissent from his own conservative People Power Party — and outrage across the political spectrum. The move, criticized as an authoritarian overreach, has sent ripples through financial markets, with investor confidence shaken and the KRW initially weakening against the greenback before climbing back after the end of martial law. (Financial Times | Wall Street Journal | Bloomberg | Reuters | Associated Press | New York Times | Guardian)

The expected collapse of French Prime Minister Michel Barnier’s government is also continuing to rank high on the digital front pages, as the country’s lawmakers get ready for a no-confidence vote later today. As in South Korea, the political uncertainty has rattled financial markets, with bond investors punishing France’s sovereign debt. President Macron appears to be making use of the plentiful sand during his trip to Riyadh to put his head in, telling reporters that he’s confident the government can survive the vote. (Financial Times | Bloomberg | Reuters | Guardian)

While over in trade war news, China has banned exports to the US of key minerals and metals — including gallium, germanium, and antimony — all used in semiconductors and military equipment, marking a sharp escalation in the ongoing US-China tech war. (Financial Times | Reuters | Associated Press | New York Times)

And in market news, some are wondering if the AI hype could soon be over, with Vanguard’s Joe Davis warning that investors have overestimated the near-term potential of artificial intelligence, raising the likelihood of a market correction. (Financial Times)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a look at the cybersecurity threats facing Egypt and the region as a whole — as well as what can be done to address our digital fragilities.

Tags:

logistics privatization watch trade WHAT WE’RE TRACKING TODAY

Somabay, every reason to fall in love.

IPO

United Bank’s retail tranche 59x oversubscribed as subscription period closes

United Bank has concluded its retail and private offerings ahead of the company being traded on the EGX, with its retail offering that closed yesterday being oversubscribed 59x, according to data (pdf) from the EGX. The tranche offered up 16.5 mn shares — equivalent to 5% of the total offering — at EGP 13.85 a pop.

The bank’s private placement was also a hit with institutional investors, with the offering of 313.5 mn shares — equivalent to 95% of the total offering — being 6x oversubscribed by the time the offering came to a close last week

Remember: The much-anticipated IPO saw the CBE-owned United Bank offer a 30% stake — equivalent to 330 mn shares — at a share price of EGP 13.85 each, with the offering expected to raise some EGP 4.6 bn. This is the second IPO to hit the EGX this year, following Act Financial’s debut in July, and marks another feather in the government’s privatization program cap.

Advisors: CI Capital was the sole global coordinator and bookrunner for the offering, while Helmy, Hamza & Partners — Baker McKenzie’s Cairo office — acted as counsel. Baker Tilly was the offering’s independent financial advisor and Ernst & Young (EY) the auditor.

Tags:

EGX IPO watch United Bank

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ECONOMY

Egypt’s non-oil private sector activity contracts at slowest pace in three months

The non-oil private sector is still contracting, but signs of stabilization are beginning to emerge. Egypt’s non-oil private sector activity contracted for the third consecutive month in November, edging up to 49.2 from 49.0 in October, according to S&P Global’s latest Purchasing Managers’ Index (PMI) report (pdf). The reading came as subdued customer demand and weaker new order inflows continued to weigh on business activity — though contraction eased to its mildest pace in three months.

This month’s reading saw the second consecutive month of improvement in PMI numbers and the highest reading since August, when non-oil private sector activity breached the 50.0 mark that separates growth from contraction for the first time in over three years.

Input price inflation slowed to a four-month low in November, with rising wages and material costs exerting less pressure than in previous months. A stronger USD continued to drive up costs for imported goods, but overall inflationary pressures softened, moderating the rise in purchase prices.

Manufacturing showed tentative signs of recovery, with modest growth in orders boosting output. However, this uptick was offset by continued contraction in construction, wholesale and retail, and services.

Employment fell for the first time in five months, registering the sharpest drop in headcount since February. S&P Global attributed the decline to firms’ hesitancy to replace voluntary leavers due to lower sales volumes and subdued confidence.

While the reading suggests that business conditions are edging closer to stabilization, firms reported one of the lowest levels of confidence seen in the survey’s history. Commenting on Egypt’s future outlook, senior economist at S&P Global Market Intelligence David Owen noted that “reductions in purchasing activity and employment hint that firms are not expecting capacity levels to be challenged too much in the months ahead.”

ELSEWHERE IN THE REGION-

Saudi Arabia’s PMI rose to 59.0 in November (pdf), up from 56.9 in October and marking the country’s highest reading for 16 months.
Kuwait’s PMI increased to 55.9 in November (pdf), up from 52.7 in October, the second biggest monthly jump since the survey began in the country in September 2018.
Qatar’s PMI inched up to 52.9 in November (pdf), up from 52.8 in October.

Tags:

economy PMI S&P

DIGITALIZATION

Banque Misr concludes Egypt’s first ever public sector online real estate auction with Belmazad

Going once, going twice, sold: Banque Misr has concluded the country’s first-ever online public sector real estate auction in collaboration with auction platform Belmazad.com, selling off a number of the bank’s real estate assets, according to a statement (pdf) from the state-owned bank.

We thought that something might be in the works: Banque Misr signed a strategic partnership with Belmazad.com back in May that saw the bank make what it called a “significant” investment in the company.

Belmazad? Belmazad.com — a subsidiary of Tech Mazad — is a digital real estate auctioning platform that aims to more efficiently and transparently facilitate real estate sales, with the company having auctioned some EGP 3.5 bn worth in assets, Belmazad.com COO and co-founder Omar El Dewey told EnterpriseAM.

How did the auction work? Through Belmazad.com’s digital platform, auction participants were able to view property videos, pictures, and maps, as well as anonymously place bids, Belmazad.com said in a separate statement. The auction also leveraged Banque Misr’s resources by allowing participants to block funds on their accounts rather than send deposits via check or bank transfer, ensuring streamlined refunds and payments.

A fairer playing field: In addition to benefiting from pure anonymity, the digital event introduced safeguards to prevent sniping, with the system automatically extending the auction time if a new bid was placed in the final five minutes. The auction also saw fair prices reached without external interference, Banque Misr’s real estate investments division head Hassan Samir said.

The new venture is aligned with Egypt’s wider goals: Digital real estate auctions align with the government’s directive to promote digitization as part of Egypt’s Vision 2030 program and is consistent with Banque Misr’s commitment to building a cashless society, the bank’s statement read. The bilingual auctions are also set to promote inclusivity in public auctions, allowing foreign investors to take part in the resale of local assets, El Dewey noted.

These auctions could be used to sell more public sector assets: Banque Misr and Belmazad.com plan to jointly leverage the platform’s current system and know-how to scale digital auctioning to the national level — including potentially selling public sector assets in partnership with the government, Belmazad.com co-founder and CEO Mahmoud Farahat told EnterpriseAM.

More Egyptian banks want to get in on the action: As a primary investor in Belmazad.com, Banque Misr’s collaboration offers a blueprint for further partnerships, with Farahat noting that 90% of major Egyptian banks are looking to implement the company’s digital auctioning services.

What’s next? Banque Misr plans to add more of the bank’s own assets and third-party assets entrusted to them on the platform in the coming period, Chief Investment Officer Ahmed Sobhy noted in Banque Misr’s press release.

In the long term, the platform aims to expand in Middle Eastern and African markets, with El Dewey noting that the platform could be used for non-real estate assets in the future.

Tags:

banking Banque Misr digitization Fintech real estate

Energy

AfDB backs Hassan Allam and ACWA’s Gulf of Suez mega windfarm with USD 170 mn loan

The soon-to-be largest windfarm in the region gets backing from the AfDB: The African Development Bank (AfDB) has approved a USD 170 mn loan to fund local energy and infrastructure leader Hassan Allam Utilities and Saudi renewables giant ACWA Power’s 1.1 GW wind farm in the Gulf of Suez — set to be the largest of its kind in the Middle East — according to a statement from AfDB. The loan would fund 16.0% of the entire USD 1.1 bn project.

We should also soon hear an update on a USD 200 mn loan from the European Bank for Reconstruction and Development for the project, which has passed its final review and is only pending approval, according to a project summary from the lender.

All in all, the two companies are reportedly set to secure close to USD 900 mn in financing by the end of the year for their 1.1 GW wind farm in Gulf of Suez, a source with knowledge of the matter told EnterpriseAM in September. It's unknown whether the AfDB and EBRD loans were part of the count.

When operational, the project will be a big boost to our energy production and green transition targets, with the project set to offset 2.2 mn tons of carbon dioxide annually and produce enough power for nearly 1.1 mn households. The wind farm’s 1.1 GW capacity will mark it as the largest wind project in both Africa and the Middle East.

Tags:

ACWA Power energy renewables windpower

LEGISLATION WATCH

House pushes Criminal Procedures Law vote, approves host of energy exploration bills, and more in packed session

The House wrapped up a three-day session with a host of agreements and legislative measures approved, and will now take a two-week break before reconvening on 15 December.

#1- Discussion on the newly amended Criminal Procedures Law will stretch into a fourth week to get more input from different political actors and entities.

#2- MPs approved 22 of the 44 articles in the draft cash-based subsidies bill to establish a Takaful and Karama fund to provide cash-based payments to those under the poverty line, funded by the state budget, private contributions, foreign grants and loans, and investments.

#3- The House gave its final nod to five energy exploration bills authorizing the Oil Ministry to contract with local and international companies to explore for oil and gas across Egypt:

Over in the Mediterranean, Eni’s IEOC Production will look for oil and gas in the North Port Fouad and South Nour offshore areas.
In the Nile Delta, ZN B.V. Ltd will oversee exploration and production of oil and gas in the North Khatatba area.
Out in the Western Desert, the Egyptian General Petroleum Corporation (EGPC) and Tharwa Petroleum will look for, develop, and produce oil in the Horus Development Area, while EGPC and HBS International Egypt will do the same in the South Dabaa area.

Tags:

energy House of Representatives Legislation Watch subsidies

DEBT WATCH

Tamweel Mortgage Finance, AT Lease close securitized bond issuances

After a calm year for securitization, are we starting to see the start of an end-of-year rush to the debt markets? December last year saw EGP 18.6 bn worth of securitized bonds issued in only one month, accounting for 19.3% of the EGP 96.0 bn worth of securitized bonds issued throughout the whole of the year, according to our math — but we will have to wait and see if something similar will happen this year.

TAMWEEL ISSUES ITS FIRST SECURITIZED BONDS OF THE YEAR-

Tamweel secures EGP 1.8 bn in securitization issuance: Tamweel Mortgage Finance has closed an EGP 1.8 bn securitized bond issuance, according to a statement (pdf) from CI Capital. The issuance — which is backed by a receivables portfolio of around EGP 3.3 bn according to Al Borsa — is the first in a new EGP 5 bn program, which will be parent company Tamweel Holding’s second multi-issuance securitization program.

The details: The issuance was divided into five tranches, with tenors ranging from 24-75 months and ratings of AA+, AA, AA-, A, and A- ratings from Middle East Rating and Investors Service (MERIS).

The issuance got plenty of traction: The new issuance received a subscription coverage more than double the value of the issuance, Tamweel Holding Managing Director Mohamed El Kahky told Al Borsa.

The buyers: CIB, the National Bank of Egypt, Banque du Caire, and the Arab African International Bank acted as the issuances underwriters. The banks also subscribed to the issuance along with SAIB Bank.

Advisors: CIB, Al Ahly Pharos, and CI Capital arranged, managed and promoted the issuance. CIB served as the custodian, Banque du Caire was the subscription agent, Dreny & Partners provided legal counsel, and Baker Tilly served as the auditor.

AT LEASE CLOSES ITS FIFTH SECURITIZATION ISSUANCE-

Islamic leasing outfit AT Lease has successfully closed a EGP 1.5 bn securitized bond issuance, it said in a statement (pdf) Monday. The company’s fifth-ever issuance is secured by a portfolio of future financial receivables from leasing contracts assigned by the firm. AT Lease aims to utilize the proceeds from the issuance to “strengthen the company’s financial position, maximize profitability and returns on equity, and support future growth plans,” the company said.

The details:The issuance was divided into three tranches, with tenors ranging from 25-48 months and ratings of AA+, AA, and A from Meris.

The buyers: CIB, NBE, Banque du Caire, and AAIB acted as the issuance’s underwriters along with Al Ahly Pharos. CIB, the National Bank of Egypt, the Arab African International Bank (AAIB), Banque du Caire, and EBank were among those who subscribed to the issuance.

Advisors: Al Ahly Pharos, CI Capital, and CIB acted as issuance managers, financial advisors, arrangers, and promoters. NBE served as the subscription agent, while Banque Misr was the custodian. ALC Alieldean Weshahi & Partners provided legal counsel and Baker Tilly was the auditor.

DATA POINT- The two transactions bring the total value of securitized bonds issued in Egypt this year to more than EGP 32.9 bn, 45.7% less than that was raised in the same period in 2023, according to data tracked by EnterpriseAM.

Tags:

ALC Alieldean Weshahi & Partners AT Lease Baker Tilly Banque du Caire capital markets CI Capital debt watch financial services Islamic finance leasing National Bank of Egypt

LAST NIGHT’S TALK SHOWS

Trump’s threat to bring “hell” to the region continued to command the airwaves

The nation’s talking heads continued dissecting US president-elect Donald Trump’s warning that the region would face “hell” unless the hostages in Gaza were released.

“Trump’s statements have crossed every line imaginable. I thought that as he approached the White House, he’d be more rational and stop with these falsehoods and accusations,” political thinker Mostafa El Feki told Sherif Amer (watch, runtime 2:37). “This is Trump signaling he’ll bring harsher policies to the region. He and Netanyahu are two sides of the same coin,” he said, adding, “What worse could Palestinians possibly face?”

Ahmed Moussa delivered a scathing critique of Trump on Ala Mas’ouleety, asking his viewers, “Does the president-elect not see the genocide against Palestinians in Gaza? Does he or other world leaders have any humanity?” (watch, runtime 3:09).

Tags:

Gaza LAST NIGHT’S TALK SHOWS Middle East politics

ALSO ON OUR RADAR

Holding Company for Roads and Bridges looks to secure USD 500 mn worth of Iraqi rail projects. PLUS: Mermec, Fawry, Amoun + Atlas, EBRD + CIB

LOCOMOTIVE-

#1- Egypt eyes USD 500 mn in railway projects in Iraq: State-owned Holding Company for Roads and Bridges is looking to secure USD 500 mn worth of railway projects with the Iraqi government as a part of Iraq’s plan to spend USD 100 bn on infrastructure over three years, two unnamed sources tell Asharq Business. The company has submitted technical and financial proposals for the projects, with negotiations ongoing and a final agreement expected by March 2025.

Remember: Iraq has been emerging as a prime destination for infrastructure investment of late, with a delegation from the Contractors Union visiting Baghdad last month to check out construction sector investment opportunities at the Iraq Investment Forum. A number of local players have made plans to enter the country, with Talaat Moustafa Group, Ora Developers, Elsewedy Electric and Algammal for Contracting among those getting ready to penetrate the Iraqi market.

#2- Italy’s Mermec could embark on a railway signalling and control systems factory: Transport and Industry Minister Kamel El Wazir called on Mermec to establish a factory to localize the production of signalling and control systems for railways, according to a ministry statement. The project aims to enhance railway safety and reduce the reliance on imported components, and eventually make Egypt a regional hub for railway parts and components.

We’re also getting new sleeper trains: The Egyptian National Railways also finalized an agreement with Spain’s high-speed train manufacturer Talgo to supply seven new luxury sleeper trains, following the recent delivery of six similar models. A EUR 200 mn loan to import sleeper trains from the company was given the presidential thumbs up in August after being passed by the House in June.

FINANCIAL SERVICES-

Fawry MSME facilitated some EGP 2 bn in payments: Fawry’s SME-focused subsidiary Fawry MSME has facilitated over EGP 2 bn in loan transactions over 750k transactions with its buy now, pay later overdraft feature — dubbed Al Nota — since the beginning of the year, according to a press release (pdf). Al Nota offers merchants a digital limit that can be used to finance working capital needs, “transforming bill payments and B2B transactions into short-term loans with maturities ranging from 3 to 15 days,” according to the statement.

ECONOMY-

Kuwait renewed a USD 2 bn Central Bank of Egypt deposit certificate due for repayment in April for another year, according to a report (pdf) from the central bank. The report, which shows the status of bank deposits through June 2024, does not clarify whether Kuwait’s other USD 2 bn tranche due for repayment in September was renewed or repaid.

Total long-term deposits fell to USD 9.3 bn, down from the USD 14.9 bn recorded at the end of June 2023 due to the UAE converting its deposits to help fund its Ras El Hekma mega project.

Remember:Unconfirmed reports in October suggested that the Gulf nation was mulling converting its USD 4 bn in deposits with the central bank into direct investments. The news followed Saudi Investment Minister Khalid Al Falih telling Prime Minister Moustafa Madbouly in August that the kingdom was looking to convert some of its USD 5.3 bn worth of deposits at the CBE into investments.

M&A-

Amoun for Real Estate and Tourism Development acquired a 30.7% stake in Atlas For Investment and Food Industries, purchasing 199.9 mn shares for EGP 155.9 mn at an average price of EGP 0.78 per share, according to a EGX disclosure (pdf). The Financial Regulatory Authority had previously extended the offer period to facilitate Amon’s bid for up to 65.59% of Atlas’s capital.

DIPLOMACY-

Foreign Minister Badr Abdelatty was in Port Sudan yesterday, becoming the first Egyptian foreign minister to visit the country since the civil war began in April 2023, according to a statement from the ministry. Abdelatty met with Sudan’s de-facto ruler Abdel Fattah Al Burhan and his Sudanese counterpart and reiterated calls for an immediate ceasefire, the ramping up of humanitarian aid, and safeguarding of shared water resources.

EXPANSION-

All roads lead to Riyadh: Five unnamed Egyptian engineering firms plan to establish factories in Saudi Arabia with total investments worth around SAR 500 mn, head of the Egyptian-Saudi Business Council’s industry committee, Mohamed Genedy, told Mubasher. The companies aim to use the investments to strengthen their presence in Gulf export markets

DEBT-

EBRD greenlights EUR 50 mn risk-sharing agreement with CIB for SME on-lending: The European Bank for Reconstruction and Development (EBRD) has given final approval for a risk-sharing facility with CIB to support SME lending in Egypt, CIB said in a statement. The EBRD will guarantee 50% of a EUR 50 mn loan portfolio, allowing CIB to expand its lending capacity to underserved SMEs over the next five years.

Tags:

ALSO ON OUR RADAR automotive CIB construction debt DIPLOMACY EBRD economy Egypt-Iraq relations Egypt-Sudan relations financial services Fintech infrastructure IPO watch Iraq M&A Watch Manufacturing real estate Saudi Arabia SMEs transport

PLANET FINANCE

Rate cuts ahead, but not necessarily in December

Rate cuts are coming, but it might not be this month: The US Federal Reserve is expected to continue cutting interest rates in 2025 despite no firm expectations about the next cut taking place this month, Bloomberg reports, citing three unnamed Fed officials. The final decision will be made at a meeting on 17-18 December.

It all depends on the data: There is support for a cut in December, but the decision will depend on whether upcoming data — including for the labor market — alters the “forecast for the path of inflation,” Fed Governor Christopher Waller said. New York and Atlanta Fed presidents shared this view, emphasizing that the inflation data will be the deciding factor as “the outlook remains highly uncertain.”

Service sector inflation remains a concern: The personal consumption expenditures price index, excluding food and energy, increased by 2.8% for the 12 months ending in October, leading some investors to expect delays in the cutting cycle.

REFRESHER- Analysts have been anticipating interest rate cuts since the US elections wrapped last month, though the Fed has signaled that its rate cut cycle may play out slower than initially forecasted. Analysts also expect new policies from president-elect Donald Trump to drive up inflation and potentially slow down the monetary easing cycle further. The expected cuts would come just two months after the Fed’s 50 bps rate cut in September — its first in over four years.

A change to the Fed’s inflation policy is needed, officials say: Flexible average inflation policy will be reviewed in the Fed’s next framework evaluation in January. This review will look into the current framework, which allows inflation to run slightly above the target, and which Waller said was backward looking and designed before inflation began to rise.

MARKETS THIS MORNING-

Asian markets are in the red as investors digest the events in South Korea, with the country’s Kospi index down more than 2%, and South Korean stocks in the US seeing intense volatility. Over on Wall Street, futures are flat after the S&P 500 and Nasdaq closed at record highs.

EGX30	30,629	+0.3% (YTD: +23.0%)
USD (CBE)	Buy 49.67	Sell 49.81
USD (CIB)	Buy 49.69	Sell 49.79
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,816	+0.7% (YTD: -1.0%)
ADX	9235	-0.3% (YTD: -3.6%)
DFM	4847	+0.5% (YTD: +19.4%)
S&P 500	6050	+0.1% (YTD: +26.8%)
FTSE 100	8359	+0.6% (YTD: +8.1%)
Euro Stoxx 50	4879	+0.7% (YTD: +7.9%)
Brent crude	USD 73.62	+2.5%
Natural gas (Nymex)	USD 3.05	+0.2%
Gold	USD 2,666.20	+0.3%
BTC	USD 95,740.50	+0.3% (YTD: +127.0%)

THE CLOSING BELL-

The EGX30 rose 0.3% at today’s close on turnover of EGP 4.5 bn (7.5% above the 90-day average). Foreign investors were the sole net buyers. The index is up 23.0% YTD.

In the green: Edita (+3.9%), B Investments Holding (+1.9%) and Ezz Steel (+1.8%).

In the red: Palm Hills Development (-3.6%), Juhayna (-2.4%), and Alexandria Containers and Cargo Handling (-2.3%).

Tags:

Federal Reserve interest rates Planet Finance

HARDHAT

The cyber threats facing Egypt and how to address them

Egypt’s digital growth comes with cyber risks: Egypt’s growing reliance on digital infrastructure and economic automation has placed it squarely in the crosshairs of increasingly sophisticated cyberattacks, cybersecurity expert and advisor to the High Advisory Board for IT and Cybersecurity Waleed Hagag told EnterpriseAM. While Egypt has made notable progress in its cybersecurity efforts — scoring full marks across all five pillars in the International Telecommunication Union’s 2024 Global Cybersecurity Index (pdf) — the rapid pace of digital transformation continues to expose critical vulnerabilities. From hacking vital infrastructure to safeguarding personal and institutional data, the risks are growing as Egypt’s digital ecosystem expands.

THE RISKS-

Egypt’s vital systems are squarely in hackers’ sights, with power grids, banking networks, transportation, and government operations facing relentless threats, Hagag told us. A breach in any of these systems could trigger massive disruptions or expose highly sensitive data. Phishing scams are also on the rise, with cybercriminals fine-tuning fraudulent emails and messages to siphon personal and financial information. Meanwhile, ransomware continues to paralyze systems and wipe out critical data, leaving both organizations and governments scrambling to recover.

The explosion of IoT devices adds another layer of risk: Poorly secured internet-connected devices are becoming gateways for hackers to infiltrate larger networks, Hagag noted. State-sponsored cyberattacks are also escalating, targeting national infrastructure and corporations with espionage-driven precision that challenges even the most advanced defenses.

AI is rewriting the rules of cyber warfare: According to a Capgemini online event attended by EnterpriseAM, cybercriminals are currently leveraging AI to supercharge their attacks, from high-fidelity deep fakes and social engineering scams to data-targeted strikes like AI worms and prompt injections. These sophisticated tools thrive on an expanding attack surface fueled by remote work, cloud adoption, and operational tech, making breaches more frequent than ever.

The scale of the threat is stark: Egypt has emerged as a key target for cybercriminals in 1H 2024, with 22 databases leaked on the dark web, including 16 corporate breaches, according to Russian cybersecurity firm Kaspersky’s Middle East cybersecurity threat assessment (pdf). Over 3.8 mn records, nearly 2 mn linked to government accounts, were exposed. During the first half of the year, dark web marketplaces featured 38 unique ads globally for initial access to corporate networks, with Egypt contributing eight posts and five unique ads targeting industries such as government, healthcare, IT, and financial services.

Ransomware attacks hit Egypt hard in 1H 2024, with six incidents primarily targeting government entities — a hallmark of financially driven hackers zeroing in on high-value victims. While revenue and industry potential often dictate their targets, geopolitical tensions have also shaped their focus. Construction firms and business service providers joined government bodies as the top sectors under siege in the region, underscoring the calculated nature of these attacks.

THE RESPONSE-

Egypt is stepping up its fight against rising cyber threats with a multi-layered approach that blends technology, education, and collaboration, according to Hagag. Public awareness campaigns and professional training programs are central to this strategy, equipping individuals and organizations with the tools to identify and counter cyberattacks. At the same time, investments in advanced technologies like artificial intelligence, blockchain, and encryption are bolstering Egypt’s ability to detect and neutralize threats before they escalate.

The Madbouly government is on the case: The new cabinet announced back in July that it would be looking to roll out new legal and regulatory frameworks to promote cybersecurity and combat cybercrimes while putting in place plans to hedge against cyberattacks.

We can deploy AI to ward off cybercriminals: AI is strengthening defenses by improving threat detection, supporting investigations with vast data analysis, and enabling automated responses to incidents, Capgemini global cybersecurity lead Marco Pereira said. As organizations prepare for the future, generative AI has emerged as a top priority for 2025, underlining its potential to stay ahead of evolving threats while reshaping how businesses defend themselves in the digital age.

LEGISLATION IS PLAYING CATCH UP-

More needs to be done on the legislative front: While Egypt’s 2020 Personal Data Protection Act laid a foundation for safeguarding personal data, updates are urgently needed to keep pace with evolving technology and impose tougher penalties on cybercriminals, according to Hagag.

International cooperation is also on the cards: With cyber threats increasingly crossing borders, stronger international cooperation is critical to effectively combat cross-border attacks and protect Egypt’s digital landscape, Hagag added.

The private sector is central to the strategy, with the government promoting investment in cybersecurity and incubators for startups. Large companies are also being urged to enhance data protection to safeguard against growing cyber risks.

More AI legislation is also on its way: The second phase of the National Artificial Intelligence Strategy is set to kick off soon, CIT Minister Amr Talaat said last month.

THE TALENT GAP-

A shortage of skilled cybersecurity professionals remains a significant challenge for Egypt, Hagag highlighted. Addressing this gap requires expanding higher education programs to include specialized courses in cybersecurity, networking, and computer science. In addition, Haggag emphasized the importance of training initiatives that offer globally recognized certifications, such as CISSP, CEH, and CompTIA Security+, to equip professionals with the expertise needed to strengthen the country’s cybersecurity workforce.

While there’s a need for skilled cybersecurity professionals in Egypt, new initiatives are emerging to close the gap. The Export Development Bank, in collaboration with the Central Bank of Egypt’s Egyptian Banking Institute, has launched the Information Security Academy to train IT graduates in cybersecurity, addressing a critical need for expertise in protecting the nation’s digital infrastructure. Similarly, the American University in Cairo has introduced a cybersecurity major to prepare students for the growing demand in the job market for professionals capable of countering sophisticated cyber threats.

Efforts to build talent are also expanding through innovative platforms: Edtech company EYouth rolled out the EGP 2 bn NextEra Education, offering AI-powered, globally accredited programs in cybersecurity, programming, and data science through partnerships with international universities. On the corporate front, Deloitte’s new Cairo innovation hub aims to hire 5k skilled professionals over three years, backed by a USD 30 mn investment, with a focus on AI, data analysis, and cybersecurity. These initiatives mark significant strides in cultivating the talent needed to secure Egypt’s digital future.

ON THE REGIONAL FRONT-

The average cost of a cyberattack in the Middle East has surged to USD 8.8 mn — nearly double the global average — highlighting the region’s escalating vulnerability to cyber threats, according to Positive Technologies’ Middle East cybersecurity threats report. Between 3Q 2023 and 2Q 2024, cyberattacks tripled during periods of geopolitical tension, with hacktivist groups and advanced persistent threats (APTs) targeting critical sectors such as government, manufacturing, and telecommunications.

Government institutions bore the brunt of the attacks, accounting for 24% of incidents, while 17% targeted manufacturers. High-profile breaches included a cyberattack on the UAE’s Lulu Hypermarket, which exposed over 200k customer records. Meanwhile, sophisticated ransomware groups disrupted energy and water systems, including a hack that temporarily shut down 70% of gas stations in Iran.

With the Middle East’s cybersecurity market projected to hit USD 23.4 bn by 2028, regional governments and companies are ramping up investment in AI-driven threat detection and compliance frameworks. However, as cybercriminals evolve their tactics, the report highlights the urgent need for proactive and scalable defenses to safeguard the region’s critical infrastructure and burgeoning digital economy.

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CALENDAR

2024

DECEMBER

3-5 December: (Tuesday-Thursday) Food Africa 2024, Egypt International Exhibitions Center, Cairo

4-5 December (Wednesday-Thursday): Russian trade mission to visit Egypt

7 December (Saturday): The Scientific Society for Tax Legislation will hold its annual conference

7 December (Saturday): The Future of Finance Conference 2024, Conrad Cairo Hotel, Egypt

10 December (Tuesday): Capmas expected to publish inflation data for November

12-21 December (Thursday-Saturday): Turathna handicrafts and heritage exhibition, Egypt International Exhibitions Center, Cairo

15 December (Sunday): MPs will reconvene in the House

15-17 December (Sunday-Tuesday): Nebu Expo for Gold & Jewelry, Cairo, Egypt

16-17 December (Monday-Tuesday): Mining World Conference 2024, London, UK

22 December (Sunday): The Nahda University Economic Forum’s third edition is set to take place

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting

EVENTS WITH NO SET DATE

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City

2025

January: Civil Society Support Fund to launch digital platform

January: CBE to launch InstaPay remittances for Egyptians abroad

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

1 January (Wednesday): The minimum pension will increase to EGP 1.5k, and the maximum to EGP 11.6k

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

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

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

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

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

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2Q 2025: Safaga Terminal 2 to start operations

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

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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