IMF mission meets cabinet members

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WHAT WE’RE TRACKING TODAY

IMF mission meets with Al Mashat, El Khatib

Good morning, ladies and gentlemen. We kick off the week with a brisk issue as it looks like we are approaching the end-of-year news slowdown in local business news. We lead the news well with the details of what went down during meetings between the IMF and cabinet members and a new financing initiative from the Madbouly government, this time targeting startups.

PSA-

WEATHER- It’s another cool day in Cairo, which is in for a high of 20°C and a low of 12°C, according to our favorite weather app.

It’s just as cool in Alexandria, with a high of 20°C and a low of 12°C.

WATCH THIS SPACE-

#1- IMF mission meets with Al Mashat, El Khatib: It was a busy Saturday for the IMF mission currently in Egypt as part of the latest round of reviews for our USD 8 bn loan program, with the mission meeting Planning Minister Rania Al Mashat and Investment Minister Hassan El Khatib to review progress on Egypt’s ongoing economic and structural reform program.

Al Mashat showcased Egypt’s shift toward an investment- and export-led growth model, highlighting the 5.3% growth seen in the first quarter of FY 2025-2026, driven by stronger industrial output. She also presented the Public Investment Governance Report, emphasizing that adhering to the EGP 1 tn investment ceiling last year created space for more private-sector investment. Discussions also touched on progress on the State Ownership Policy and steps to operationalize the State-Owned Enterprises Unit.

Meanwhile, El Khatib discussed ongoing financial, institutional, and trade reforms, stressing that the government is pursuing a disciplined reform approach to maintain macroeconomic stability, expand private sector participation, and improve the investment climate. During the meeting, the IMF mission praised the progress made in both investment and trade, describing Egypt’s reform trajectory as clear, consistent, and conducive to building investor confidence and attracting valuable investments.

REMEMBER- A delegation from the Fund is in town to carry out the combined fifth and sixth reviews of the country’s USD 8 bn extended fund facility program.

#2- The National Investment Bank’s partial divestment from Egytrans may be the first of many moves to restructure its over EGP 400 bn of assets, Planning and International Cooperation Minister Rania Al Mashat said, according to a statement. Her comments came at the opening bell for Egytrans’ first day of trading following its merger with Nosco — the bank reduced its share in the local logistics player from 25.5% to 18.3%.

REMEMBER- The Planning Ministry-owned bank controlled some 85 companies as of the end of August out of a total 561 companies owned by the state, according to a government document seen by EnterpriseAM. The bank and other state entities are preparing for a wave of IPOs and uptick in privatization efforts to raise USD 3 bn this fiscal year, down from an earlier USD 5-6 bn target, as they work to deepen the local capital market, attract fresh flows into equities, and signal seriousness to international partners, including the IMF.

#3- The shipping industry’s return to the Suez Canal is still TBD — and any return will be gradual, Hapag-Lloyd CEO Rolf Habben Jansen said in an online call with customers, Reuters reports. Despite the Houthis committing to stop their attack on passing vessels following October’s Gaza ceasefire agreement, the shipping line is still closely monitoring the security situation before deciding to properly return to the canal, he said.

But when a date is set, don’t expect vessels to come streaming back immediately, with a 60-90-day transition period planned to reduce any congestion issues and give time to logistics operators to prepare.

ON THE DIPLOMATIC FRONT-

Egypt and others called out Israel’s plan to open the Rafah Crossing in only one direction as an attempt to “expel the Palestinian people from their land,” according to a joint statement from the foreign ministers of Egypt, Jordan, UAE, Pakistan, Indonesia, Turkey, Qatar, and Saudi Arabia. The joint statement followed the Israeli military’s Coordination of Government Activities in the Territories announcing last week that the Rafah Crossing would open “exclusively for the exit of residents from the Gaza Strip to Egypt.”

But how to exercise pressure on Israel? The “Trump Plan” and the man behind it: The statement painted the decision to open the crossing in only one way as running counter to and obstructing US President Donald Trump’s push to end the war that resulted in the Sharm El Sheikh Peace Summit. For good measure, those signing the joint statement also “reiterate[d] their appreciation for President Trump’s commitment to establishing peace in the region” — an achievement that Israel looks to be threatening.

The opening of the crossing for traffic both ways is supposed to take place once all living and dead hostages are returned to Israel, which Hamas and other groups are close to achieving, with only one body remaining. But following the handover of the last body, the Trump-led plan to end the war will enter a new and more unpredictable phase that many worry will see Israel fully restart operations with domestic pressure to return hostages no longer weighing on the government. Even with the purported ceasefire, Israel has killed more than 250 Palestinians since the agreement came into effect in October, including two children a day, according to Unicef.

DATA POINT-

Companies on the EGX have a combined market capitalization of EGP 2.9 tn — or USD 61.1 bn at today’s exchange rate, EGX Chairman Islam Azzam said in a statement. Total market capitalization is up nearly 40% from the start of the year and equivalent to 16% of GDP, he added.

CIRCLE YOUR CALENDAR-

Egypt will face Belgium, Iran, and New Zealand in Group G of the 2026 World Cup, according to the final draw results. Egypt — led by head coach Hossam Hassan — will open its campaign against Belgium on Monday, 15 June. This will be Egypt’s fourth World Cup appearance, and the first since 2018. The US, Mexico, and Canada co-hosted World Cup kicks off on 11 June, with the final match scheduled for 19 July.

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

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THE BIG STORY ABROAD-

It’s relatively calm in the foreign press this morning — among the stories making headlines:

#1- Netflix will acquire Warner Bros Discovery in a USD 72 bn agreement, which would give it control of Warner’s portfolio, including HBO and major franchises like Harry Potter and Batman. Warner Bros Discovery CEO David Zaslav is expected to remain in charge of the studio under Netflix's ownership. Regulators are expected to scrutinize the merger over antitrust issues, but if approved, it would expand Netflix’s influence across film, television, and streaming. (Financial Times | New York Times | CNN | Reuters | BBC | Bloomberg)

#2- Australia kicks off the world’s first social media ban: Australia is rolling out the world’s first social media ban for anyone under 16 years of age, with Meta already deactivating hundreds of thousands of teen accounts on Instagram, Facebook, and Threads ahead of the 10 December deadline. The ban will make it illegal for anyone under 16 years old to hold accounts on major platforms, including TikTok, YouTube, Snapchat, Reddit, and X, with companies facing fines of up to AUD 49.5 mn (c. USD 33 mn) if they fail to comply. (BBC | Reuters | Guardian | Washington Post)

Egypt prepares EGP 10 bn initiative to support startups

A EGP 10 bn financing initiative targeting startups? The Finance Ministry is currently working with the Central Bank of Egypt (CBE) and other relevant ministries to launch a first-of-its-kind EGP 10 bn financing initiative targeting startups and entrepreneurs, a government source told EnterpriseAM.

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

What’s on the table? The initiative aims to provide concessional funding to startups and entrepreneurs through the Micro, Small & Medium Enterprises Development Agency and the CBE, according to the source.

The initiative will also provide technical assistance and simplified procedures related to registration, documentation, and utilities. “This will help young people establish a large base of small projects and entrepreneurship activities on a sectoral basis, linked to the state’s plans to expand strategic industries and sectors,” our source added.

What about the rates? The Finance Ministry has not yet decided on the final interest rate on loans under the initiative, but our source confirmed that the rates will be favorable to incentivize the sector. We think the interest rate could stand at around 15%, similar to that offered under the EGP 90 bn financing initiative targeting industrial, agricultural, and renewable energy players.

The timeline: The government will likely launch the initiative in the first half of 2026, according to our source.

WHILE WE’RE ON THE TOPIC OF STARTUP FINANCE- The European Bank of Reconstruction and Development (EBRD) will extend a USD 200 mn loan to the National Bank of Egypt to on-lend to MSMEs, according to a project summary on the EBRD’s website. The total amount will be disbursed as a senior unsecured loan of USD 100 mn and a later, uncommitted tranche of the same amount. The funds, which will be channeled via the state-owned bank’s Al Ahly Leasing and Al Ahly Tamkeen Microfinance, will focus on women, young people, and projects outside Cairo and Alexandria.

Egypt’s external debt rises to USD 161 bn in FY 2024-25

Total external debt recorded USD 161.2 bn by the end of the fiscal year 2024-25, recording a 5.5% y-o-y increase, according to the recent Central Bank of Egypt’s external position report (pdf) for the fiscal year.

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

No reason to worry: “The external debt remained within manageable limits, with a stock-to-GDP ratio of 44.2% and with a favorable structure of 80.8% as long-term debt,” the report read.

The report said the uptick in external debt was the result of a USD 5.4 bn increase in disbursements of external loans and facilities and the USD’s depreciation against other foreign debt currencies, which resulted in a USD 2.9 bn increase in book value.

External debt service climbed to USD 38.7 bn during FY 2024-25, up USD 5.8 bn y-o-y. Principal repayments were the main driver behind the increase, rising by USD 6.5 bn to USD 30.2 bn, while interest payments shrank by USD 700 mn to hit USD 8.5 bn.

Foreign reserves saw a USD 2.3 bn increase during the fiscal year, reaching USD 48.7 bn. This rise was primarily driven by a USD 4.1 bn increase in gold reserves, which helped offset a USD 1.8 bn dip in foreign currencies.

Commercial banks’ net foreign assets jumped to USD 2.1 bn during the fiscal year to end the year at USD 4.9 bn. Foreign currency deposits climbed 18.5% y-o-y during the period to reach USD 62.3 bn. Looking at the banking sector as a whole, it saw net foreign assets rise to USD 14.9 bn by the end of the fiscal year.

The report also highlights key developments to our current account deficit, which narrowed to USD 15.4 bn in FY 2024-25, backed by a marked increase in remittances, a rise in tourism revenues, and a jump in non-oil exports.

Honeywell backs Egypt’s USD 530 mn sustainable aviation fuel project

ENERGY-

#1- Honeywell will support the state’s planned USD 530 mn sustainable aviation fuel(SAF)production complex in Alexandria under a technology licensing agreement, which will see the US multinational conglomerate provide its expertise to produce SAF “to the highest international standards,” according to a statement from the Oil Ministry. The Oil Ministry-led project via its Sustainable Aviation Fuel Production Company aims to produce 120k tons of SAF from the collection of used cooking oil and reduce carbon emissions by 400k tons a year.

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

REMEMBER- Honeywell has been eyeing the project since 2023, initially mulling a public-private partnership with state-run entities and local private companies. The following year, it partnered with the European Bank for Reconstruction and Development to complete a feasibility study for the project, before dropping out of the news cycle once again.

#2- Cheiron’s Pico Petroleum and the Egyptian General Petroleum Company will invest at least USD 30 mn to drill four new wells in the Gulf of Suez’s East Gemsa offshore area under an agreement inked between the two that includes a USD 1 mn signing bonus, according to a statement from the Oil Ministry.

EXPANSION-

#1- Could we start seeing more Egyptian projects in KSA? Oil Minister Karim Badawi is in Saudi Arabia on an official visit aimed at boosting Egyptian participation in the Kingdom’s energy and infrastructure projects, according to a statement. During a meeting with representatives from the Public Investment Fund-owned Neom Company, the two sides touched on cooperation in green hydrogen, petrochemicals, sustainable building materials, and clean energy technologies.

#2- Private investment group Intro Group is planning to expand into Saudi Arabia’s real estate market, Chairman Ayman Abbas told Asharq Business. The company is also looking to grow its oil services business beyond drilling and explore green projects, including plastic recycling. Meanwhile in Egypt, Intro plans to build a 100-room boutique hotel near the Grand Egyptian Museum.

AUTOMOTIVE-

Golf karts are exempt from personal car import rules that limit individuals to one car every five years, according to a decision from the Investment Ministry seen by EnterpriseAM. Karts are used within gated compounds and resorts and, as such, are considered distinct from vehicles used on public roads, according to the decision.

STARTUP WATCH-

Egypt-born, Saudi-based social e-commerce platform Taager entered the Moroccan market, launching operations in Casablanca as part of its regional growth plan, according to a press release. The move targets Morocco’s growing e-commerce market, where Taager aims to make online selling more accessible for young entrepreneurs.

This marks the company’s first expansion into North Africa, following its presence in Egypt, Saudi Arabia, and the UAE.

Inheritance is now the biggest source of new b'naire wealth

B’naire heirs inherited more wealth in 2025 than in any previous year, with USD 298 bn passed on to spouses and children in the year to April, the highest figure since records began, according to UBS’ B’naire Ambitions Report 2025 (pdf). The wealth transfer also marks a 36% y-o-y increase as 91 individuals became b’naires through inheritance.

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

UBS expects this trend to accelerate, with USD 5.9 tn set to exchange hands over the next 15 years. The US will account for almost half of the expected flow of capital, with Western Europe, India, and Greater China also set for strong contributions. Meanwhile, some USD 152.7 bn is expected to exchange hands in the Middle East and Africa by 2040, largely to heirs in the UAE, Saudi Arabia, Israel, and South Africa, the report estimates.

This year, the Americas saw the biggest growth in b’naire wealth, up 15.5% to USD 7.5 tn, while Asia-Pacific saw an 11.1% increase; EMEA lagged slightly on the back of stunted growth in Europe, though it still saw b’naire wealth rise 10.4% to USD 4.1 tn.

B’naires — especially younger ones — are increasingly mobile, with an exodus expected from traditional wealth hubs like Switzerland, which harbors an estimated USD 206 bn set for transfer, on the back of a possible 50% levy on inheritances above USD 62 mn. The UK has also been seeing a significant number of high-net-worth individuals leave their home country for more tax-friendly alternatives.

The UAE, Singapore, and the US are now among the preferred destinations for wealthy individuals, 36% of whom have recently relocated, with quality of life, taxation, and geopolitical climate cited as key decision factors, the report said.

Self-made wealth is also on the rise, with some 196 new self-made b’naires emerging this year — the highest since 2021 — with growth led by US tech, China consumer sectors, and Asian crypto and software.

Total b'naire net worth reached USD 15.8 tn, up around 13% y-o-y, with new b’naires adding USD 137.2 bn, outpacing existing b’naires.

While tech b’naire wealth rose 23.8% to USD 3 tn, industrials grew faster, up 27.1% to USD 1.7 tn, supported by SpaceX valuation gains and EV supply chains. Consumer and retail wealth showed 5.3% growth, as the European market cooled and Chinese brands captured market share.

Where are b’naires investing their money next year? Some 42% of b’naires plan to increase allocations to EM equities, 35% are looking toward infrastructure, 49% are eyeing direct private equity, and 32% are set to invest more in gold or precious metals. North America remains the top return market (63%), but half of those surveyed see Asia-Pacific and Greater China as becoming the most attractive destinations.

EGX30	41,499	+0.4% (YTD: +39.5%)
USD (CBE)	Buy 47.50	Sell 47.63
USD (CIB)	Buy 47.52	Sell 47.62
Interest rates (CBE)	21.00% deposit	22.00% lending
Tadawul	10,626	+0.5% (YTD: -11.7%)
ADX	9,951	+0.4% (YTD: +5.7%)
DFM	5,984	+0.9% (YTD: +16.0%)
S&P 500	6,870	+0.2% (YTD: +16.8%)
FTSE 100	9,667	-0.5% (YTD: +18.3%)
Euro Stoxx 50	5,724	+0.1% (YTD: +16.9%)
Brent crude	USD 63.75	+0.8%
Natural gas (Nymex)	USD 5.29	+4.5%
Gold	USD 4,243	0.0%
BTC	USD 89,390	0.0% (YTD: -4.5%)
S&P Egypt Sovereign Bond Index	974.04	+0.1% (YTD: +25.3%)
S&P MENA Bond & Sukuk	151.89	0.0% (YTD: +8.5%)
VIX (Volatility Index)	15.41	-2.3% (YTD: -11.2%)

THE CLOSING BELL-

The EGX30 rose 0.4% at Thursday’s close on turnover of EGP 7.4 bn (44.2% above the 90-day average). International investors were the sole net buyers. The index is up 39.5% YTD.

In the green: GB Corp (+5.0%), E-finance (+3.3%), and Juhayna (+2.4%).

In the red: TMG Holding (-2.6%), Rameda (-2.5%), and Oriental Weavers (-2.1%).

CALENDAR

DECEMBER

1-12 December (Monday-Friday): IMF mission for extended fund facility program reviews.

4-7 December (Thursday-Sunday): Egy Stitch & Tex Expo 2025, Cairo International Conference Center.

10 December (Wednesday): Capmas to release inflation data for November.

15 December (Monday): Neo Gen PropTech and Sustainable Smart Cities Conference, The St. Regis Hotel New Capital

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

EVENTS WITH NO SET DATE

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

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

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

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

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

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

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

2026

JANUARY

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

7 January (Wednesday): Coptic Christmas.

25 January (Sunday): Revolution Day / Police Day.

FEBRUARY

10-12 February (Tuesday-Thursday): Gitex Global’s AI Everything Middle East & Africa Summit

19 February (Thursday): First day of Ramadan (TBC).

MARCH

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

21 March: (Saturday): Eid El Fitr starts (TBC).

30 March - 1 April (Monday-Wednesday): Egypt International Energy Conference and Exhibition 2026 (EGYPES)

APRIL

12 April (Sunday): Coptic Easter.

25 April (Saturday): Sinai Liberation Day.

MAY

1 May (Friday): Labor Day.

27-29 May (Wednesday-Friday): Eid El Adha (TBC).

May: NEBU Egypt’s Gold & Jewelry Exhibition.

JUNE:

30 June (Tuesday): National holiday in observance of June 30 Revolution (TBC).

JULY

23 July (Thursday): National holiday in observance of Revolution Day (TBC).

AUGUST

26 August (Wednesday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

SEPTEMBER

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

27-29 September (Sunday-Tuesday): Egypt will host the fourth edition of the Global Conference on Population, Health and Human Development.

OCTOBER

6 October (Tuesday): Armed Forces Day.

EVENTS WITH NO SET DATE

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

2027: Egypt-EU Summit 2027

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

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

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