IMF team to land in Cairo this month

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IMF team to land in Cairo this month

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Today at a glance

Investment Watch

China Energy Engineering to invest USD 1 bn in Egypt over next five years.

Economy

IMF to begin fifth, sixth loan reviews this month?

DEBT WATCH

FinMin ramps up borrowing target for September on strong demand.

RETAIL

Majid Al Futtaim earmarks EGP 1.9 bn in investments for the local market this year.

Automotive

Auto sales slip for first time in six months in July.

Banking

Egyptians among 1k wealthy clients facing discontinued service from HSBC’s Swiss private bank.

LAST NIGHT’S TALK SHOWS

The British Embassy in Cairo closes its doors.

PLANET FINANCE

Domestic money powers China rally as overseas investors hold back.

BLACKBOARD

Demand for int’l schools is on the rise following the return of SAT exams.

What We're Tracking Today

Egyptian banks start lowering interest rates on savings products

Good morning, friends, and welcome to the start of a new month. We kick off September with an issue busy with a little bit of everything — fresh investment news, updates on our upcoming IMF review, and the Finance Ministry increasing its borrowing target for the month.

Madbouly’s time in China continues to bear fruit, with China’s CEEC expressing interest in investing some USD 1 bn in the local market over the coming five years to better position Egypt as a regional energy hub.

AND- If you have an appointment at the British Embassy this week, you may have some difficulty entering the embassy building. The embassy closed its doors yesterday and directed those with pre-booked appointments to reach out to a specific number for directions regarding how to access the embassy compound.

In the fourth issue of our Destination Sahel series, we're bringing you the latest updates on New Alamein City and a look at the best investments in Sahel today. We also investigate the growing issue of beach erosion and its impact on our shores.

Look for Destination Sahel, Issue IV, in your inbox on Wednesday, 3 September.

Missed the first three issues? Tap here to read the full series.

PSA-

WEATHER- It’s another warm day in Cairo, with the capital in for a high of 37°C and a low of 24°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 24°C.

WATCH THIS SPACE-

#1- Local banks are starting to lower interest rates on savings products following the central bank’s 200 bps rate cut last week, with Banque Misr and the National Bank of Egypt (NBE) leading the way.

Banque Misr said it reduced rates on its new EGP and USD certificates starting today, with its flagship three-year fixed-rate EGP certificate now offering 17% annually, down from 18.5%, according to a statement seen by EnterpriseAM. The bank also cut yields on its tiered Ibn Misr certificates to 20.5%, 17%, and 13.5% — down 2.5 percentage points. Interest on USD-denominated certificates was also trimmed by 30-45 bps across maturities. The NBE followed suit, cutting rates between 1.5-4 percentage points on its newly issued savings products starting today.

#2- Egypt will begin construction of a long-stalled gas pipeline with Israel next year, a government source told EnterpriseAM, adding that the project was agreed to years ago, but was put on hold due to financial issues and geopolitical turmoil. This comes as we prepare to more than double Leviathan gas imports under the recently inked USD 35 bn agreement to send 130 bn cubic metres of gas to Egypt from 2026 through 2040.

Construction is expected to wrap up by 2028, with Egypt covering USD 200 mn of the cost and Israeli companies contributing a similar amount.

Gas flows will be channeled to Egypt’s gas liquefaction plants in Damietta and Idku ahead of re-export to Europe as LNG, we were told.

HAPPENING TODAY-

#1- It’s day one of a three-day G20 summit on global and regional food security challenges, which marks not only the country’s first time hosting the group, but the first time any non-G20 state has done so, according to a Foreign Ministry statement. The discussions will feed into a ministerial declaration set to be adopted in an upcoming G20 Ministerial Meeting in South Africa on 19 September.

#2- The revamped Labor Law is now live. After years of debate and discussion between the government, parliament, business groups, and labor unions, which saw previous iterations of the bill pulled from the House over competing claims that it was lopsided in favor of either business owners or workers, the new Labor Law is officially the law of the land.

What does the new law entail? We dove into the ins and outs of the new law in our coverage here.

#3- Calling all pharma manufacturers, Pharmaconex is kicking off at the Egypt International Exhibition Center today, according to a statement (pdf) from the organizers. The three-day event will highlight recent public and private sectors’ efforts to localize drug manufacturing and strengthen supply chains under the National Health Strategy 2024-2030. The exhibition will host over 350 exhibitors from 40 countries and feature some 70 conference sessions.

NEWS TRIGGERS-

It’s the first work day of September — here are the key news triggers to keep your eyes on this month:

Will the country’s non-oil private sector return to growth territory? S&P Global will release hotly anticipated PMI figures measuring non-oil private sector activity for August on 3 September. Last month’s report saw the country’s headline figure rise to 49.5, just short of the 50.0 neutral threshold that separates growth from contraction. Non-oil private sector activity has declined for five straight months and has only been in expansion territory for two months since November 2020.
Many are expecting inflation to cool again in Capmas’ upcoming release of August inflation data, set for 10 September. Annual headline urban inflation cooled by a whole percentage point in July to 13.9%, marking the second straight month of easing inflation and giving the central bank confidence to restart its interest rate easing cycle last week. The CBE expects inflation to continue its downward path to hit an average of 14-15% in 2025 and continue to make progress toward its 7% (± 2 percentage points) target for 4Q 2026 — an assessment most analysts seem broadly in agreement with.
The IMF says it will hold its combined fifth and sixth reviews of Egypt’s USD 8 bn Extended Fund Facility arrangement in the second half of September — but don’t expect the IMF to keep to its timetable exactly. Finance Minister Ahmed Kouchouk put the completion date in September or October in comments last month.

EGX WATCH-

The EGX30 fell 1.6% yesterday to close at 35.1k points after reaching an intraday high of 35.9k during its first session after the CBE cut rates by 200 bps on Thursday. Some investors took the closure of the British Embassy’s main building in Cairo (more on that in the news well, below) as a negative signal, while others used the rally as a window to lock in gains, Al Ahly Pharos Head of Research Hany Genena told EnterpriseAM, describing the dip as a brief pullback the market is likely to shake off. Building materials led the drag, slipping 3.6% after a strong run-up in recent months, while tourism and energy were the only sectors to finish in the green. The benchmark index remains up 18.2% YTD.

DEBT WATCH-

Yields on local debt instruments fall following rate cut: The Central Bank of Egypt sold EGP 62.3 bn worth of EGP-denominated t-bills — exceeding its target of EGP 55 bn — at yields well below those accepted last week, reflecting the impact of Thursday’s 200 bps rate cut. The CBE sold EGP 26.7 bn worth of three-month t-bills at an average yield of 27.2% — the average yield for last week’s auction stood at 27.7% — and EGP 35.6 bn worth of nine-month bills at an average yield of 26.3%, down from last week’s 26.7%, according to data on the CBE website.

CIRCLE YOUR CALENDAR-

#1- The annual Cairo Water Week will kick off on 12 October at Cairo’s Triumph Hotel, bringing together regional and international experts and policymakers to discuss and promote water security and global sustainable development, according to a statement. The week-long event, under the theme Innovative Solutions for Climate Resilience and Water Sustainability will feature competitions, workshops, policy dialogues, and exhibitors wanting to showcase their latest water and climate solutions. Register to attend on the event’s official website.

#2- Investors have until 11 September to apply online for more than 1.3k industrial land plots across 23 governorates with a total area of 6.8 mn sqm, according to a statement. Interested investors can apply through the Made in Egypt digital platform and the General Authority for Industrial Development will announce the results for the bids before the end of the month.

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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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at the current state of Egypt’s fertilizer industry, and what risks loom just around the corner. You can check out the story here.

THE BIG STORY ABROAD-

Trade news is dominating the global front pages this morning after India and China agreed to stabilize relations previously disrupted by tensions over their Himalayan border. Chinese President Xi Jinping and Indian Prime Minister Narendra Modi agreed that their nations are “partners not rivals” and to strengthen trade ties amid US tariff pressures on India and shifting global economic conditions. (Reuters | FT | AP | NYT | Bloomberg | CNN)

What do improved relations between the two countries mean? The two sides agreed to resume direct flights between the two countries, which have been suspended since 2020, and ease tourist visa restrictions. China had previously agreed to lift export restrictions on rare earths, fertilizers, and tunnel-boring machines.

MEANWHILE- Stocks are bracing for the September blues after posting strong gains in August. While September is usually the worst-performing month for stocks, with the S&P 500, Dow Jones, and tech-heavy Nasdaq incurring their worst losses during the month, some market experts are optimistic about what’s to come. UBS Global Wealth Management’s Mark Haefele expects “an economic soft landing, solid corporate earnings, and lower interest rates to support markets over the next 12 months.” CNBC has the story.

IN OUR NECK OF THE WOODS- Israel said it killed Hamas spokesman Abu Obeida on Saturday. Israeli Defense Minister Israel Katz said in a post on X that forces have “eliminated” the masked spokesman. Hamas is yet to confirm or deny the news. (Bloomberg | Washington Post | NYT | Wall Street Journal)

Also making headlines: Over 1 mn people were evacuated in Pakistan’s Punjab province due to severe flooding submerging more than 1.4k villages and damaging key grain crops, Reuters reports.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at how SAT exams returning to Egypt after a four-year hiatus is increasing demand for international schools.

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banking What We're Tracking Today

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Investment Watch

China Energy Engineering to invest USD 1 bn in Egypt over next five years

China Energy Engineering Corporation (CEEC) is looking to invest USD 1 bn in Egypt over the next five years in desalination, renewables, and energy storage, Chairman Ni Zhen told Prime Minister Moustafa Madbouly on the sidelines of the Shanghai Cooperation Organization Plus summit. The company is also in talks with the Electricity Ministry over the possibility of investing in power generation, Zhen said.

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

Gov’t backing: The government will offer the company incentives and is pushing it to help localize components for renewables and desalination as Egypt works to meet an additional 5-6 GW of annual demand for renewable energy. Also part of the government’s energy and desalination plans are exporting power to Europe, boosting renewables to 20% of the energy mix in FY 2025-2026, and ramping up desalination to 10 mn cubic meters a day within five years — up from 1.4 mn cubic meters a day.

CEEC’s footprint in Egypt: The company has carried out 14 projects in Egypt since it set foot into the market in 2009 and moved its regional HQ to Cairo.

ANOTHER CHINESE PLAYER IS INTERESTED IN DESALINATION-

China’s Jiangsu Fenghai New Energy Seawater Desalination Development Company is also mulling bringing its renewable energy-powered desalination model with a daily capacity of 10k cubic meters to Egypt, according to a statement. The company is also willing to scale up daily production capacity to meet Egypt’s needs. To move forward, Madbouly proposed direct coordination between Egyptian authorities and the company to explore cooperation.

THAT’S NOT ALL- Madbouly also met with Teda Chairman Qu Defu to discuss expanding the Chinese industrial developer’s footprint in Egypt, according to a separate statement. The company is set to receive more land in the Suez Canal Economic Zone, with potential new sites in New Alamein and the new capital also on the table.

REMEMBER- Teda Egypt will invest USD 100 mn to develop infrastructure on a 2.9 sq km industrial plot in the Sokhna Industrial Zone in partnership with the Main Development Company. Teda Egypt is also nearing completion of its previously allocated 7.3 sqm Teda zone.

DATA POINT- Teda Egypt’s industrial zone has attracted USD 3 bn in investment from 200 firms over the past decade, generating over 10k jobs.

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Economy

IMF to begin Egypt’s fifth, sixth loan reviews this month?

A team from the IMF will likely head our way in the second half of the month for the fifth and sixth reviews of the country’s USD 8 bn loan program, a senior 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.)

REMEMBER- The Fund decided in July to combine the fifth and sixth reviews to give the state more time to make progress on withdrawing itself from the economy and the broader reform agenda. Finance Minister Ahmed Kouchouk said that the combined review could be concluded in September or October, unlocking a USD 2.5 bn tranche. If all goes according to plan, the program is set to expire in October 2026.

The steps taken: Over the past few months, the Madbouly government has taken several steps in line with its reform agenda with the IMF in hopes of successfully completing the two reviews and unlocking the long-awaited tranche.

#1- Committing to the cap on our unified treasury account: The Finance Ministry has committed to the IMF’s EGP 238 bn cap on its unified treasury account, according to a government document seen by EnterpriseAM. Any amount beyond the cap incurs an additional 4% interest payment to the CBE. The move has pushed the government to accept higher yields when it comes to local debt instruments.

SOUND SMART- The unified treasury account — AKA treasury single account — is a tool that consolidates all government funds and transactions. It is a tool pushed by the IMF for effective money management in governments — “in countries with fragmented government banking arrangements, the establishment of a TSA should receive priority in the public financial management reform agenda.” You can read more about the tool on the Fund’s website.

#2- What about privatization? Sluggish progress on privatization has long been criticized by the fund. To that end, officials plan to make significant moves on that front, our source said, adding that the resumption of the privatization program is contingent on a package of IPO incentives currently brewing.

What incentives? The Madbouly government is looking into offering fresh incentives for large-scale IPOs on the EGX in a bid to boost activity on the market, with a full tax exemption on IPO proceeds as a main priority. The package was previously said to be finalized by the end of August.

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

We’ll have more details soon: Kouchouk will hold a joint presser alongside officials from the Financial Regulatory Authority and the Egyptian Exchange in the coming days to unveil the details of a new package of incentives, the minister said earlier this week.

#3- Securing FX: Recent efforts have also focused on attracting more investments, our source said, adding that the primary goals are securing steady FX inflows and increasing employment rates. Egypt recorded its highest-ever monthly USD inflows in July, reaching USD 8.5 bn, Prime Minister Moustafa Madbouly said last week. These inflows, which excluded hot money, came from all state sectors, including a historic surge in remittanc es.

What is the IMF looking for? The IMF's primary goal is to ensure Egypt's financial needs are met and that key economic indicators are improving. We’re on the right track, our source said, pointing to a jump in foreign investments, along with better rates of growth and employment. The IMF expects Egypt’s external financing needs to reach USD 30.4 bn during this fiscal year, before declining to USD 27.5 bn in FY 2026-2027.

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debt economy IMF

DEBT WATCH

Egypt ramps up borrowing target for September on strong demand

Gov’t ramps up borrowing target for the month: The Finance Ministry has upped its monthly borrowing target for September to EGP 838 bn, a 25% jump from August’s EGP 670 bn, a government source told EnterpriseAM. This move comes in response to the heightened demand from investors for local debt instruments.

To set the scene: Foreign investors have recently funneled an unprecedented amount of FX inflows into public debt instruments, with their holdings reaching USD 40 bn by the end of July, compared to USD 38 bn by the end of March.

The past few months saw significant inflows into the public debt market, largely fueled by growing positive momentum in the economy and strong FDI and tourism revenues, our source noted. These factors, our source said, have improved economic indicators, positioning the country as the top destination for foreign investments in debt markets.

The country recorded its highest-ever monthly USD inflows in July, coming in at USD 8.5 bn, Prime Minister Moustafa Madbouly said last week. These inflows excluded hot money.

The local market remains attractive for hot money inflows, despite the resumption of the monetary easing cycle, the source said, emphasizing that all local and external factors support our local debt market.

ICYMI- The Central Bank of Egypt cut interest rates by 200 bps on Thursday. The overnight deposit rate now stands at 22.0%, the overnight lending rate at 23.0%, and the main operation and disc. rates at 22.5%.

Our debt market is highly attractive due to several key reasons — exchange rate stability, improved growth indicators, and reduced risk due to government guarantees on debt instruments, banking expert Mohamed Abdel Aal told us. Global anticipation of interest rate cuts is also one of the catalysts for the significant inflows expected in the near future, Abdel Aal added.

The government has been careful not to use hot money proceeds to finance medium-term assets, Abdel Aal said. Instead, it uses these returns for short-term financing operations, such as import credits for production input and other goods, which are then paid for from export revenues.

We’re awaiting the new debt strategy: The Finance Ministry is working on its new public debt strategy for 2025-2030, which government sources have previously told us could be released during 1Q FY 2025-2026. The strategy aims to diversify the country's public debt instruments and introduce new ones, seeking to secure funding with varied and more competitive interest rates.

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debt debt watch Finance Ministry

RETAIL

Majid Al Futtaim earmarks EGP 1.9 bn in investments for the Egyptian market this year

Majid Al Futtaim plans to invest EGP 1.9 bn in Egypt’s retail sector this year, Egypt country manager Mohamed Khafaga said on the sidelines of the inauguration of its first Carrefour branch in Suez attended by EnterpriseAM. “We are committed to being part of Egypt’s future through local investment and contributing to achieving Egypt Vision 2030,” said Majid Al Futtaim Retail CEO Günther Helm.

More expansion plans ahead through 2030: The company aims to expand its retail footprint in Egypt over the coming five years, opening 300 new outlets across its brand portfolio, which currently includes 70 Carrefour stores, 25 Supeco outlets, and five Myli stores. Majid Al Futtaim Retail is currently present in 18 governorates and plans to expand nationwide by 2030.

Egyptian-made goods to hit Careffour shelves abroad: The Emirati retailer has also begun exporting some Egyptian agricultural, food, and textile products to its branches abroad, Khafaga said, highlighting the company’s commitment to supporting local production and supply chains.

DATA POINT- Around 99% of the more than 25k products offered at Carrefour Egypt are sourced locally through partnerships with some 800 suppliers, including farmers, SMEs, and factories.

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Carrefour Majid Al Futtaim retail

Automotive

Egypt’s auto sales dip in July after five straight months of gains

Auto sales fell 4.9% m-o-m in July to 15.6k units from June’s 16.4k, according to figures from the Automotive Marketing Information Council (Amic) seen by EnterpriseAM. The dip comes after five straight months of gains which started in February, though July still marked the second-highest total vehicle count since June 2022.

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

Partly driving the fall were passenger car sales, which declined 4.8% m-o-m to 12.1k units, and truck sales, which dropped 12.1% to 2.4k units. These dips were partially offset by a 14.3% m-o-m increase in bus sales to 1.1k units.

Despite the drop, sales are still way up over the longer term, with total vehicle sales rising 36.9% y-o-y in July. Passenger car sales climbed 23.7% y-o-y in July, bus sales grew 76.2% y-o-y, and truck sales increased 139.1% y-o-y.

REMEMBER- Auto sales saw a partial recovery last year, growing around 13.2% y-o-y with some 102.2k vehicles sold throughout the year. The rebound came after the market was able to catch its breath following a turbulent period triggered by an FX crunch that limited supply in the market and gave distributors leverage to hike prices as they pleased.

A caveat to the numbers: Amic figures are sourced from member distributors, representing the bulk — but not the entirety — of the industry.

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AMIC automotive

Banking

Egyptians among 1k high-net-worth individuals kicked from HSBC’s Swiss private bank following regulatory scrutiny

HSBC’s Swiss private bank is cutting ties with more than 1k wealthy clients from Egypt, Saudi Arabia, Qatar, and Lebanon, many of whom hold assets above USD 100 mn, Bloomberg first reported last week, citing unspecified insider sources. The affected — and unnamed — clients are being told they will no longer be able to use the bank’s services, with letters going out over the coming months instructing them to move accounts elsewhere.

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

The bank is reportedly looking to lower its exposure to high-risk clients, the sources told the business news information service. The news follows continuing regulatory oversight from the Swiss Financial Market Supervisory Authority after the financial watchdog blocked the Swiss-based bank in 2024 from entering into relationships with “politically exposed persons” that may be subject to corruption and ordered an external audit of high-risk client relationships.

REMEMBER- HSBC Egypt and the HSBC Private Bank in Switzerland are legally and operationally separate entities, each falling under the laws and regulations of the countries they are in.

The move doesn’t mean HSBC is bowing out of the region, where it maintains its “absolute commitment” to its clients. “[We will] continue to have deep roots in the region and are fully committed to our customers who are at the heart of everything we do,” International Wealth and Premier Banking CEO Barry O’Byrne said in a statement seen by EnterpriseAM.

HSBC’s current strategy to grow its Wealth business will see “continued investment in both [its] Middle East and Swiss businesses to deliver best-in-class service to [its] customers,” he said

This isn’t the first time that our part of the world has caused concern for the Swiss regulator, after it said last year that the Swiss bank did not properly vet USD 300 mn in Lebanon-Switzerland transactions between 2002 and 2015. HSBC’s Swiss private banking arm is also under investigation in Switzerland for alleged money laundering linked to Lebanon’s former Central Bank Governor Riad Salameh.

HSBC’s Swiss private bank has been central to the group’s global wealth ambitions but has repeatedly been hit by regulatory probes. The latest purge underscores how compliance pressure is reshaping global banks’ relationships with politically exposed clients in the Middle East.

The news got traction in the world’s other main business outlets, including the Financial Times and Bloomberg.

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banking HSBC Switzerland

LAST NIGHT’S TALK SHOWS

Last Night’s Talk Shows on the British Embassy in Cairo closing its doors

The British Embassy in Cairo has closed its doors after the security barriers outside the building in Garden City were removed by Egyptian authorities, the embassy wrote in a statement. It will remain closed “while the impact of these changes is reviewed.” Until then, emergency consular assistance will be available through its hotline and pre-booked appointments will proceed with adjusted access to the embassy complex.

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

“The decision follows growing calls in [Egypt] for a retaliatory response to the UK's handling of a protest in London,” BBC wrote, citing the arrest of an Egyptian citizen last week in front of the Egyptian embassy in the UK for confronting protestors outside the embassy. Foreign Minister Badr Abdelatty is said to have called the UK’s National Security Adviser Jonathan Powell for an explanation over the arrest. Abdelatty previously said that Egypt has the right to respond against countries that “failed to provide protection for Egyptian embassies in accordance with the Vienna Convention.”

El Hekaya’s Amr Adib voiced his support for Egypt’s decision to remove the security barriers (watch, runtime: 16:06). “We’ve asked authorities abroad several times to put barriers in front of Egyptian embassies, but no one would respond to this request,” Former Foreign Minster Mohamed Eloraby told Adib, adding that the decision to remove the barriers is “just an operational decision that should not impact trade and diplomatic relations between Egypt and other countries.”

Ala Masouleety’s Ahmed Moussa also supported the Egyptian authorities’ move, saying that there is no reason to keep the barriers, highlighting that they were first put in place in front of the British and US embassies for security reasons in 2003, and that security is a lot more stable today (watch, runtime: 19:26). The barriers blocked the street where the embassy is located, causing traffic congestion in the area, which sparked complaints from Garden City residents, Moussa said.

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LAST NIGHT’S TALK SHOWS UK

Also on our Radar

SA International to invest EGP 500 mn on new Alexandria factory

INVESTMENT WATCH-

Oil and gas inspection and NDT services provider SA International plans to invest EGP 500 mn to build a new factory in Alexandria, Al Borsa reports, citing General Manager Abdullah El Sayyad. The facility will manufacture spare parts and equipment for petroleum inspection operations, targeting to meet about 10% of local demand in its first phase and to eventually fully substitute imports.

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

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ALSO ON OUR RADAR investment watch oil and gas

PLANET FINANCE

Domestic money powers China rally as overseas investors hold back

One of the many emerging markets benefiting from a global rally this year is China, which is outpacing European, US, and Japanese peers in local currency terms, the Financial Times reports. The CSI 300 benchmark has climbed 14.3% YTD after a sharp rebound since June, though doubts persist over the rally’s staying power.

Local investors are driving the surge, as they push into equities amid falling bond yields, lower deposit rates, and the collapse of property as a preferred asset class. Margin trading has jumped 19% in two months to RMB 2.2 tn (c. USD 308 bn) — the highest since 2015, though analysts say leverage is more contained than during the bubble that ended in a crash a decade ago.

Policy has laid the groundwork: State-backed funds staged coordinated share purchases earlier this year to stabilize valuations, and more market support followed after Beijing ordered insurers to boost equity exposure. Analysts say this liquidity backdrop is the key driver of the rally, even as deflation weighs on earnings, with producer prices falling 3.6% y-o-y in July.

But foreign investors remain on the sidelines, with Ping An Asset Management’s Vincent Che saying there has been no significant impact from foreign flows. These investors have favored Japan and Europe where FX-adjusted gains have been stronger. “I would much rather be focused on an earnings-driven market,” Lombard Odier’s Asia CIO John Woods said.

Derivatives markets also signal caution: The Hang Seng China Enterprises Index, which tracks mainland firms listed in Hong Kong, has rebounded 23% from its April low, Bloomberg reports. Yet implied volatility on ETFs tied to the gauge has dropped to a four-year low, showing little appetite to chase the rally.

Options pricing underlines the divide: Upside calls remain expensive, while downside hedges on the FTSE China A50 are “rarely” this cheap, according to Bank of America. Traders are also positioning for the expiry of the 90-day US-China trade truce, shifting to call spreads rather than taking an outright bullish approach.

MARKETS THIS MORNING-

Asian markets are mixed this morning, led by losses in Japan as the Nikkei fell 1.8%. On the flip side, Hong Kong’s Hang Seng Index is up 1.9%, while mainland China’s CSI 300 is flat, following a Shanghai Cooperation Organization regional security bloc meeting that saw China and India agree to become development partners.

EGX30	35,148	-1.6% (YTD: +18.2%)
USD (CBE)	Buy 48.52	Sell 48.65
USD (CIB)	Buy 48.54	Sell 48.64
Interest rates (CBE)	22.00% deposit	23.00% lending
Tadawul	10,697	-0.3% (YTD: -11.1%)
ADX	10,095	-0.2%(YTD: +7.2%)
DFM	6,064	-0.3% (YTD: +17.5%)
S&P 500	6,460	-0.6%% (YTD: +9.8%)
FTSE 100	9,187	-0.3% (YTD: -12.4%)
Euro Stoxx 50	5,352	-0.8% (YTD: +9.3%)
Brent crude	USD 67.48	-0.7%
Natural gas (Nymex)	USD 3.00	+1.8%
Gold	USD 3,516	+1.2%
BTC	USD 108,087	-1.2% (YTD: +15.7%)
S&P Egypt Sovereign Bond Index	907.23	+0.2% (YTD: +16.7%)
S&P MENA Bond & Sukuk	148.41	-0.2% (YTD: +6.1%)
VIX (Volatility Index)	15.36	+6.4% (YTD: -11.5%)

THE CLOSING BELL-

The EGX30 fell 1.6% at yesterday’s close on turnover of EGP 4.4 bn (0.9% above the 90-day average). Regional investors were the sole net sellers. The index is up 18.2% YTD.

In the green: Orascom Construction (+2.6%).

In the red: Misr Cement (-5.4%), Ibnsina Pharma (-5.3%), and Palm Hills Development (-4.7%).

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Financial Markets Planet Finance

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

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BLACKBOARD

SAT exams return to Egypt after a four-year hiatus, boosting demand for int’l schools

The return of SAT exams is spurring demand for int’l schools: With SAT exams returning after a four-year break, parents are increasingly moving their children — especially those in grades 10 and 11 — to international schools that offer the test, education industry insiders 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.)

SATs? The SAT — or the Scholastic Assessment Test — is an important part of the undergraduate admissions process to American universities for both prospective students inside and outside the US. SAT scores — which assess reading and writing, alongside math — are evaluated, along with coursework, GPA, letters of recommendation, and other components depending on the college.

SAT exams officially resumed in June, after the tests in Egypt were scrapped in September 2020 due to “persistent test security incidents,” according to nonprofit organization College Board, which develops and administers them. Now the tests are back in a new digital format that is harder to hack, leak, or manipulate, a government source told us. The Education Ministry oversaw several trial runs before approving their return.

The US Embassy in Egypt announced in May that the exams would be returning after the Education Ministry reached an agreement with College Board. The development came amid ongoing efforts to reinstate the SAT as part of Egypt’s drive to internationalize its education system.

Testing in August has just wrapped up, with further testing periods planned for September and October to accommodate demand. The SAT’s return could help restore the reputation of the American diploma in Egypt, Omran Smart Language Schools Chairman Saber Omran told EnterpriseAM.

The SAT is now administered through the College Board’s Bluebook platform. It cannot be easily downloaded via regular PDF software, is user-friendly, and comes with stricter penalties for misconduct — including cancellation of scores and potential permanent bans from future exams if any test material is copied or shared via email.

The move has led to international schools’ admissions departments seeing an uptick of interest for student transfers, one of our education industry sources told us. The difficulty of the Thanaweya Amma system also contributed to the increase in transfers, chatshow education pundit Tamer Shawky told EnterpriseAM. But many parents have also decided to remain with Egypt’s EST program — seen as easier in terms of English language requirements and thus a better fit for students with above-average, but not fluent, English.

Alongside SATs, the British General Certificate of Education (GCE) has also become increasingly popular among Egyptian students due to its externally marked standardized exams and strong curricula, we were told.

The return of the American diploma will not eliminate the EST or ACT, a government source told EnterpriseAM, as students aiming for international education will be allowed to choose among them. The EST was introduced in 2020 to replace the SAT, serving around 60k students in American diploma programs to facilitate university admissions in Egypt. For students using the EST who wish to continue their studies abroad, certain obstacles need to be removed, Omran told EnterpriseAM.

Investors could be just as interested as students’ parents. The ministry’s decision to expand international certification options could make the market more attractive to a diverse set of investors amid rising demand for international education, one industry insider told EnterpriseAM. Restoring the SAT could help revive the reputation of the American diploma in Egypt, Omran told us.

Our sources agreed that Egypt’s pre-university education system is undergoing a comprehensive overhaul to boost its quality, international recognition, and investment appeal. The SAT’s return is likely to encourage investors to expand American diploma programs and unlock new investment after years of stagnation in the sector from both local and foreign players.

Your top education stories for the week:

CIRA Education and Al Ahly Capital Holding’s Saxony Egypt University will prepare Egyptian graduates for the German labor market under a cooperation agreement inked with the cabinet’s Education Development Fund.
Saxony Egypt University also partnered with GB Corp to prepare students for the automotive industry. The agreement will see students from the university enrolled in the Automotive Mechatronics Technology program access GB Corp’s technical workshops and factories to provide hands-on experience.

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CALENDAR

SEPTEMBER

1 September (Monday): New Labor Law comes into effect.

1-3 September (Monday-Wednesday): Pharmaconex Exhibition, Egypt International Exhibition Center.

3 September (Wednesday): S&P Global to release PMI figures for August.

8-11 September (Monday-Thursday): The Egyptian-Tunisian Joint High Committee will take place.

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

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

10 September (Wednesday): Capmas and CBE to release inflation data for August.

11 September (Thursday): Orascom Construction lists on ADX.

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

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

30 September (Tuesday): The Egypt-South Korea Economic Cooperation and Partnership Forum.

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

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

Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay.

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

OCTOBER

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

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

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

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

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

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

19-20 October (Sunday-Monday): Egypt to host the fifth edition of the Aswan Forum.

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

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

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

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

NOVEMBER

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

20 November (Thursday): Monetary Policy Committee meeting.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Center.

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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

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

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

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

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

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

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

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

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

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

2026

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

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

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

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

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

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

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

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