Kasrawy, Jetour to set up USD 123 mn auto assembly factory

Wednesday, 21 May 2025

Kasrawy, Jetour to set up USD 123 mn auto assembly factory

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Today at a glance

Automotive

Kasrawy Group, Jetour are setting up a USD 123 mn factory to locally assemble Jetour models.

Manufacturing

Japan’s Sumitomo Electric inaugurates EUR 22 mn auto parts factory in Tenth of Ramadan.

INVESTMENT WATCH

Morpho Fund I makes two agricultural investments after USD 55 mn first close.

ECONOMY

The top ten takeaways from day two of the IMF’s MENA Research Conference.

ECONOMY

CBE expects inflation to decelerate, growth to accelerate in latest Monetary Policy Report.

DEBT WATCH

Beyti secures EGP 1.8 bn sustainability-linked loan from HSBC.

Startup watch

Fintech startup ElGameya closes seven-figure USD round.

ALSO ON OUR RADAR

Gov’t eyes part of China’s USD 52 bn Africa pledge.

PLANET FINANCE

Emerging markets ETFs see inflows for fourth week straight.

HARDHAT

Cairo’s real estate market picks up the pace in 2025 as inflation cools and EGP stabilizes -JLL.

WHAT WE’RE TRACKING TODAY

CBE’s Monetary Policy Committee meets tomorrow to review rates

Good morning, all. The news flow has slowed down a tad as we inch closer to the end of what has been a very long week. We lead today’s issue with automotive news, following the announcement of a USD 123 mn assembly plant and an auto parts factory going live. We also dive into the CBE’s latest Monetary Policy Report and Morpho Investments’s latest moves.

PSA-

WEATHER- It’s a cool day in Cairo, with a high of 31°C and a low of 19°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 25°C and a low of 17°C.

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HAPPENING TOMORROW-

Could a second consecutive rate cut be in store? After the Central Bank of Egypt kicked off its long-awaited easing cycle in April with a 225 bps cut — its first since 2020 — attention now turns to the MPC’s third meeting of the year tomorrow. The committee is set to decide whether to continue cutting rates or hit pause as the central bank weighs the implications of a temporary US-China trade war truce, inflation creeping up in April, and more.

Most analysts polled by EnterpriseAM see the bank cutting rates, with five of eight respondents pencilling in a 100-200 bps cut this Thursday. Some analysts, including Zilla Capital head of research Aya Zoheir, argued that not cutting rates could “confuse markets and raise questions about the consistency of the monetary policy direction.” Others, like Ahly Pharos head of research Hany Genena pointed to the forecasted stability in inflation as a reason to continue monetary easing.

DATA POINT-

Local network operators have invested around USD 2.7 bn since 2019 to secure frequencies and licenses, ICT Minister Amr Talaat said.

THE BIG STORY ABROAD-

In a rare public rebuke by Israel’s allies, the British government announced it will not move forward with discussions on free trade with Tel Aviv. The statement cited ‘egregious policies’ by PM Netanyahu, including the weeks-long blockade of aid and escalation of military offensive in the Gaza Strip, as well as the situation in the West Bank.

The EU followed with an announcement that it intends toreview its trade agreement withIsrael, a move supported by a majority of member states due to the “catastrophic” situation in Gaza. The looming famine in the sector has not yet been improved by Israel’s easing of the blockade, as the United Nations said yesterday no aid has been distributed yet despite some 100 trucks entering the enclave.

The global backlash is apparently not deterring Israel: US intelligence shows Tel Aviv is making preparations to strike Iranian nuclear facilities, unnamed US officials told CNN. The potential strike would be a huge break with US President Trump’s policy of negotiating an agreement with Tehran.

OVER IN THE US- Elon Musk — one of the biggest backers of the US Republican Party — signalled yesterday he will pull back from political spending and focus on Tesla. The EV maker saw a dip in sales amid a backlash to Musk’s close involvement in White House policymaking under President Trump.

Also worth reading this morning-

Google is adding “AI mode” to its search engine and Chrome browser for all US users. The new feature will offer a conversational chatbot — similar to ChatGPT and Copilot — rather than a list of links.
Turkey arrested 22 Istanbul municipality employees on corruption charges yesterday, the latest development after the arrest of mayor Ekrem İmamoğlu back in March.
Qatar’s PM Sheikh Mohammed bin Abdulrahman al-Thani denied that Doha’s USD 400 mn jet offered to Trump is an attempt to curry favor, calling it “a ministry of defense to department of defense transaction.”

*** 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 activity in Cairo’s real estate market during the first quarter of the year.

Tags:

Central Bank o fEgypt WHAT WE’RE TRACKING TODAY

The Somabay Endurance Festival returns for its 7th edition from Thursday, May 29 to Saturday, May 31, 2025, at the Red Sea. Organised by The TriFactory, the event features Super Sprint, Sprint, Olympic, Youth, 1K Kids, and 10K races—uniting athletes of all ages for a weekend of competition, fitness, and fun at Somabay.

Automotive

Kasrawy Group, Jetour are setting up a USD 123 mn factory to locally assemble Jetour models

Another step towards our auto localization push: Automotive player Kasrawy Group and Chinese automaker Jetour will set up a USD 123 mn factory to locally assemble the Jetour T1 and T2 models, under an agreement inked yesterday, according to a cabinet statement.

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

The details: The factory — to be set up in the 6th of October Industrial Zone — will include three production lines for welding, painting, and final assembly. Most of the output will serve the local marker, with a small portion earmarked for export. The factory will be set up over three phases and will create around 1.5k jobs.

The local component breakdown: Initially, the vehicles will have a local component ratio of 45%, to increase to 55% and 60% during the second and third phases, respectively, according to a separate statement.

Wasting no time: Jetour has already started contracting production lines for the project.

And there’s more: The Chinese carmaker is working to establish a local training center to support knowledge transfer and workforce development in auto manufacturing.

We’ve known about this for some time now after local media reported in August that Kasrawy was looking to begin locally assembling Jetour and Jac car models.

AND- The locally-assembled X70 Plus Jetour model hit the streets today — the Kasrawy Group has the capacity to assemble 5k units on an annual basis.

REMEMBER- The Madbouly government has been working to localize the auto industry, introducing the Egyptian Automotive Industry Development Program in 2022, which offers incentives to auto players with the aim of localizing the industry and its feeder industries in efforts to enhance the country’s existing assembly and manufacturing capabilities — and encouraging new investment to the sector.

ALSO- Additional incentives for EV manufacturers: To incentivize local EV manufacturing, the state will purchase a percentage of production for a five-year period, under directives from President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly said.

Tags:

automotive Manufacturing

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Manufacturing

Japan’s Sumitomo Electric inaugurates EUR 22 mn auto parts factory in Tenth of Ramadan

Sumitomo Electric opens Tenth of Ramadan automotive wiring harness factory: Japan’s Sumitomo Electric local arm SE Wiring Systems Egypt inaugurated its EUR 22 mn automotive wiring harness factory in Tenth of Ramadan, according to a cabinet statement. The facility is billed as one of the largest wiring harness factories in the world.

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

ICYMI- We heard back in October that the factory would officially open in 1Q 2025 after beginning production in November. The factory was originally scheduled to begin operations by the end of 2023.

About the factory: The factory has a production capacity of 10 mn wires per month, which the company expects to ramp up to 26 mn wires with the addition of new machines down the line. The company currently produces 650k harnesses monthly, with plans to expand production to 1 mn harnesses by the end of the year. The factory currently employs around 2k workers, with plans to increase the workforce to 3k by the end of 2025.

The company has installed solar power systems worth a combined EUR 1 mn across its Egypt plants to generate 3.2 MW of clean energy, supplying some of the plants’ energy needs.

The factory includes a training center capable of training over 600 employees daily, with further expansion plans underway. The company has signed an agreement with the Education Ministry to train over 300 vocational students across Port Said, Giza, and Sharqia. The facility also includes a research and development unit.

DATA POINT- With EUR 300 mn in exports annually, Sumitomo has maintained the title as the country’s largest freezone-based exporter for the last four years, said Sumitomo Egypt Deputy Managing Director Mohamed Hammam, according to a separate statement from the cabinet. The company’s existing factories across Sixth of October, Tenth of Ramadan, and Port Said employ some 12k workers.

Tags:

Manufacturing Sumitomo

INVESTMENT WATCH

Morpho Fund I makes two agricultural investments after USD 55 mn first close

Morpho closes its first two transactions: Newly-launched private equity firm Morpho Investments has deployed capital into two agriculture projects, according to a statement (pdf). These investments follow Morpho Investment’s first USD 55 mn close of its inaugural fund earlier this week.

The first project: Morpho — in partnership with Hassan Allam Holding — will co-invest in the Jinet Agriculture, an agricultural development park covering 14.2k feddans in West Minya that aims to “bolster Egypt’s food security, drive export capabilities, and foster industrial-scale agricultural processing,” according to the statement. The project will provide farmers and exporters with access to land plots, as well as modern technology and infrastructure, to support crop cultivation, Bloomberg reports.

The second project: Morpho also invested in Agriventures, a berry-focused precision agriculture company, to support its expansion into Saudi Arabia and Oman. The fresh funds will help Agriventures secure exclusive rights to grow, sell, and market berries in both countries.

What they said: “We are proud to have transitioned from fundraising to value creation within the same early phase of our journey. In regions undergoing dynamic economic reform, disciplined deployment is critical. We remain steadfast in partnering with businesses that can navigate these changes and emerge as future regional leaders,” Co-Founder and Managing Partner Ayman Soliman said.

And there’s more to come: Morpho is currently conducting due diligence on a healthcare services company, having recently signed a term sheet. The target firm has plans to grow its footprint across Saudi Arabia, Morocco, and Romania. Details about the company and the size of the investment have not been disclosed.

REMEMBER- The PE focuses on sectors underpinning real economic growth — manufacturing, food, logistics, and healthcare.

What’s next? The firm will get started on Morpho Fund I’s second close in 4Q 2025, Co-Founder and Managing Partner Ihab Rizk previously told us. It aims to raise an additional USD 45 mn to hit the USD 100 mn mark, Soliman told us.

An eye on Africa: Morpho Investments is eyeing potential investments in North Africa and the wider African continent, Rizk added.

Tags:

investment watch private equity

ECONOMY

The top ten takeaways from day two of the IMF’s MENA Research Conference

Day two of the IMF’s inaugural MENA Research Conference in Cairo continued its deep dive into the region’s most pressing challenges, with discussions exploring the green transition, artificial intelligence and their profound implications for labor markets, strategies for sustainable growth and stability, and more (watch, runtime: 3:25:24). Here are our top ten takeaways from the day’s panels:

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

#1- MENA’s triple threat: The region, including Egypt, is at a critical juncture, facing simultaneous green, digital and AI, and demographic transitions. AUC’s Dina Abdel Fattah warned these overlapping shifts risk widening inequality and job displacement, particularly for youth, women, and informal workers, if not managed with inclusive policies that recognize the “old narrative” of existing vulnerabilities.

#2- MENA’s female participation gap: Despite high and increasing female enrollment in tertiary education, women’s labor force participation across MENA remains strikingly low (around 20% on average, and below 15% in Egypt). Geneva Graduate Institute’s Ugo Panizza and other panellists underscored this as a significant loss of potential GDP and a critical area for policy focus to unlock economic growth.

#3- Egypt’s green job paradox: While the green transition could create up to 1 mn jobs in Egypt in sectors like solar and sustainable farming, currently only about 7.8% of jobs qualify as green, according to Abdel Fattah. Another issue is that these roles are predominantly held by men (86%), with significant underrepresentation of women, often due to skills bottlenecks, gender stereotypes, and lack of accessible training in green competencies. “Evidence from Egypt and much of the MENA region suggests that without deliberate interventions, green jobs will remain narrow in access, gendered, and highly exclusive,” she said.

#4- Growth is what can enable broader reforms: Former Finance Minister Youssef Boutros-Ghali argued that for countries like Egypt, generating economic “motion” or growth should be the initial priority, even amidst existing imbalances. He suggested that growth creates the necessary space and capacity to then implement tougher fiscal consolidation and structural reforms effectively.

#5- AI risks increasing inequality in the region: The MENA region’s relatively low current exposure to AI is “not good news” if education and training systems don’t adapt to equip the workforce for collaboration with AI, Abdel Fattah and Bocconi University’s Tito Boeri noted. Particularly in Egypt, AI readiness is concentrated in a small elite, creating a major risk of job polarization where middle-skill jobs vanish, potentially “automating inequality.”

#6- Egypt’s post-IMF assistance game plan: Planning and International Cooperation Minister Rania Al Mashat outlined Egypt’s forward-looking economic model that involves a structural shift from a reliance on non-tradable sectors (like construction) towards tradable sectors, focusing on exports, industrial production, and vigorously pursuing the green transition, while leveraging international partnerships to de-risk and channel concessional finance to the private sector.

#7- Building buffers during good times will be crucial: Expanding on credibility, Armenian central bank head Martin Galstyan highlighted the importance of “building the buffers during the good times which can be used during the bad times.”

#8- The world economy is changing and we need to be prepared: Boutros-Ghali explained that “the previous system that used to rule the global economy, namely globalization, did not benefit everybody.” He argued that we now “have to prepare ourselves to rebuild the rule-based system along the lines that is slightly fairer, slightly more transparent, slightly more effective.”

#9- Volatility calls for policy policy diversification: UC Berkeley’s Barry Eichengreen advised that in a more volatile world, policymakers “need to think about policy diversification along a number of different dimensions in terms of trade, in terms of finance, in terms of the composition of the export support basket.”

#10- Fiscal prudence will come through better revenue mobilization: Addressing fiscal consolidation, Eichengreen stated for Egypt, “the problem really appears to be revenue shortfall…it has to do a lot of the work on the revenue side by broadening the tax base and improving the efficiency of tax administration.”

Tags:

economy IMF inflation interest rates

ECONOMY

CBE expects inflation to decelerate, growth to accelerate in latest Monetary Policy Report

The Central Bank of Egypt (CBE) is out with its latest Monetary Policy Report (pdf), in which it provides a deep dive into Egypt’s economic trajectory and its position within global economic developments while offering its insights and predictions on the country’s economic performance ahead. Below are some of the key takeaways from the 1Q 2025 report.

REMEMBER- The CBE cut interest rates by 225 bps in its second meeting of the year in April, in a move that marked the Monetary Policy Committee’s first change to policy rates since March 2024. This move provided context for the bank’s predictions in the report, tying its decision to some of the key indicators of Egypt’s economy over the last quarter. And of course, the report comes just ahead of the central bank meeting once again tomorrow to decide whether to continue or hit pause on its monetary easing cycle.

The bank expects inflation to continue declining for the remainder of this year and through 2026 — albeit at a slower pace than what we saw in 1Q 2025, with the CBE forecasting the inflation level to reach its targeted average of 7% ±2 percentage points by 4Q 2026. This is attributed to the “implemented and planned fiscal consolidation measures across the forecast horizon, in addition to the relative persistence of non-food inflation.”

Driving the decline in inflation is a combination of “easing supply-chain bottlenecks, global trade flow normalization, and the impact of tight global monetary policy which effectively curbed aggregate demand,” the bank wrote.

The inflation outlook faces some risks: The CBE stated that its inflation outlook remains subject to risks emanating from “higher-than-expected passthrough of fiscal measures” as well as global risks that include “the resurgence of trade protectionism, rising geopolitical tensions, and widening global imbalances.”

ICYMI- Annual headline urban inflation rose for the second month running in April to hit 13.9%, marking a 0.3 percentage point increase from the 13.6% recorded in March. On a monthly basis, inflation eased by 0.3 percentage points to 1.3%. Despite the rise, headline inflation is a far cry from the 24.0% recorded in January, with the figure remaining relatively stable since February’s 11.2 percentage point drop.

Growth rates in 2025 so far have been positive, with economic activity in 1Q 2025 expected to have grown at a faster pace from 4Q 2024, the CBE stated. This comes on the back of expanding growth in EGP-denominated loans to the private sector since Q3 2024, which came following six consecutive quarters of negative real growth rates in local currency loans, the CBE added.

And real GDP growth is expected to continue to climb, forecast at 4.3% in the current fiscal year and 4.8% in the following fiscal year, up from 2.4% in FY 2023-24. This would mark a gradual recovery from the “subdued spell of economic activity during the past two fiscal years,” the bank said. The recovery in growth was largely attributed to increased contributions of real net exports and gross domestic investments — both of which were aided by the exchange rate unification that came with the CBE’s decision to float the EGP back in March 2024.

“The expected recovery is mainly due to the rebound of manufacturing economic activity as shown by leading indicators, reflecting the positive impact of the unification of the foreign exchange markets on the ability of firms to import requisite raw materials and intermediate goods for the production processes,” the CBE wrote. The bank added that “growth will be supported by an expected improvement in the contribution of the extractions sector, as various successful onshore and offshore discoveries are projected to revive Egypt’s production of crude oil and natural gas.”

Egypt’s ability to finance its external funding needs is also in good shape, with the narrowing current account deficit helping drive a surplus in our balance of payments, which reflected Egypt’s ability to finance its external funding needs, according to the CBE. Surging remittances helped Egypt finance its external funding needs, along with the narrowing of the net investment income deficit, which helped offset the effects of a widening trade deficit and a declining services surplus.

Tags:

Central Bank of Egypt economy

DEBT WATCH

Beyti secures EGP 1.8 bn sustainability-linked loan from HSBC

Beyti granted EGP 1.8 bn sustainability-linked loan: Dairy and juice giant Beyti has inked a sustainable loan agreement worth EGP 1.8 bn with HSBC Egypt, according to a company statement (pdf).

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

The terms: The facility is tied to ESG KPIs — a 12.3% cut in emissions by 2026, a 9.1% drop in water intensity, and a 55% reduction in landfill waste in comparison to their 2023 rates. The terms play into the company’s target to achieve zero emissions.

What they said: “Our goal is to maintain environmental balance by maximizing resource efficiency, striving for zero buried waste, and reducing our carbon footprint,” Beyti’s General Manager Chris Abboud said. “This facility is a pivotal step in accelerating our efforts to reach our goals. It gives us the financial flexibility needed to invest in more sustainable solutions across our operations, allowing us to reduce our carbon emissions by 30% by the year 2030, vs 2019.”

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Beyti debt debt watch HSBC sustainability

Startup watch

Fintech startup ElGameya closes seven-figure USD round

ElGameya raises seven-figure USD investment: Local fintech startup ElGameya closed an undisclosed seven-figure USD round led by the government’s Ayady for Investment and Development, according to a company statement (pdf).

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

Other backers: The round was also backed by Jedar Capital, Cubit Ventures, Ventures Notes, PMaestro, and a number of local and international angel investors.

About ElGameya: Founded in 2020, ElGameya digitizes and streamlines the traditional rotating savings and credit association (ROSCA) model — locally known as gameya. ElGameya’s app allows users to join money circles suited to their needs, choosing their preferred amount, duration, and payout turn.

What they said: “This funding round marks a pivotal step in our journey to establish ElGameya as a market leader in digital savings solutions in Egypt and the region. We believe digital ROSCAs have a vital role to play in enhancing financial literacy and expanding access to safe, adaptable savings and credit tools, especially for those who remain excluded from traditional financial systems,” said Amr Aboelazm, the founding chairman of ElGameya.

Tags:

Fintech Startup watch startups

EGYPT IN THE NEWS

Egypt’s oldest jeweler still shines in Downtown Cairo

Shining the light on one of the country’s oldest jewelers — the Italian Bajocchi Jewellers. The New York Times is out with a piece diving into the history of Bajocchi Jewellers, an Italian jeweler that currently holds the title of the oldest jeweler in Egypt. The NYT speaks to Pietro Bajocchi, the fourth generation of his family to run the business, who recalls how it all came to be. The business caters to the elite — royals and presidents — with Pietro currently leading the workshop, following up with the hand-making of every item. “We make only one piece. Everything is done by hand,” he said.

Tags:

Italy

ALSO ON OUR RADAR

Egypt eyes part of China’s USD 52 bn Africa pledge

INVESTMENT-

Egypt eyes part of China’s USD 52 bn Africa pledge: Prime Minister Moustafa Madbouly told Chinese officials that Egypt hopes to receive a portion of the USD 52 bn in Chinese investments earmarked for Africa, according to a cabinet statement. Madbouly highlighted potential investments in EV and mobile phones manufacturing.

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

EXPANSION-

Aman is mulling over the acquisition of a Saudi company: Raya Holding’s Aman is currently evaluating four Saudi consumer finance companies as it looks to acquire one of them in a move that would mark its entry into the Saudi market, Aman CEO Holding Hazem Moghazy told Al Borsa. He expects the company to settle on a firm and finalize the acquisition in 3 months. The companies under consideration have valuations ranging between SAR 70-360 mn.

Aman won’t be doing it solo: Aman will only hold a 41% stake in the chosen company, with Saudi companies Jarir Bookstore holding a 49% stake and Almanea holding the remaining 10%, Moghazy said.

REMEMBER- Raya Holding revealed its plans to launch a consumer finance company in Saudi Arabia through Aman in April. The company — which already operates call centers in Saudi Arabia and Dubai — also set out a Gulf expansion strategy that involves launching new fintech companies and data centers, with a focus on Saudi Arabia.

REAL ESTATE-

Al Ahly Sabbour has more Omani projects up its sleeve: Local real estate developer Al Ahly Sabbour is in talks with Oman’s Housing Ministry to develop hospitality and tourism projects in the Sultanate, Chairman Ahmed Sabbour told Asharq Business. The developer unveiled its first Omani project earlier this year — Wadi Zahaa — which is one of three projects it is working on in the Gulf nations with combined investments of OMR 440 mn.

AUTOMOTIVE-

MTI will distribute India’s Tata Motors commercial vehicles in Egypt under a strategic partnership between the two sides, according to a statement. MTI will retail and service Tata vehicles across the cargo and passenger segments in the country, covering models ranging from 1-60 tons.

Tags:

ALSO ON OUR RADAR automotive China Raya Holding real estate

PLANET FINANCE

Emerging markets ETFs see inflows for fourth week straight

Emerging market stocks are once again whetting the appetite of investors, with previously sidelined emerging market ETFs — exchange traded funds — seeing their fourth consecutive week of inflows, reports Bloomberg. Recent inflows pushed EM ETFs into the green YTD for the first time since April, with USD 1.8 bn worth of inflows pushing the collection of ETFs to a net positive of USD 880.4 mn

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

“After years of being unloved and overlooked, EM equities are seeing significant demand as allocators step up their need for geographical diversification,” said Global X portfolio manager Malcom Dorson. Moody’s downgrading the US’ sovereign credit rating by one notch to AA1 has added “fuel to the fire, and we think this rally is sustainable,” he added.

Growing risk appetite drove the Avantis Emerging Markets Equity EFT to record inflows upwards of USD 1 bn last week — marking its best ever week and accounting for more than half of EM ETFs listed stateside.

But zooming into which EM assets have become the most attractive, China is the clear front runner, with inflows reaching USD 669.1 mn last week following a temporary trade war truce between the US and the world’s factory. With trade war concerns at bay — for now at least — traders are now pricing in a much lower possibility of a coming global recession, which is good news for emerging market stocks.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. The Shanghai Composite is up 0.1%, the Hang Seng and Kospi are both in the green, looking at gains of 0.4% and 0.7%, respectively. Meanwhile, Japan’s Nikkei is down 0.2%.

EGX30	31,629	+0.9% (YTD: +6.4%)
USD (CBE)	Buy 49.83	Sell 49.96
USD (CIB)	Buy 49.86	Sell 49.96
Interest rates (CBE)	25.00% deposit	26.00% lending
Tadawul	11,438	+0.3% (YTD: -5.0%)
ADX	9,707	+0.4% (YTD: +3.1%)
DFM	5,467	-0.4% (YTD: +6.0%)
S&P 500	5,940	-0.4% (YTD: +1.0%)
FTSE 100	8,781	+0.9% (YTD: +7.4%)
Euro Stoxx 50	5,455	+0.5% (YTD: +11.4%)
Brent crude	USD 65.38	-0.2%
Natural gas (Nymex)	USD 3.43	+0.1%
Gold	USD 3,307	+0.7%
BTC	USD 106,085	+0.5% (YTD: +13.4%)
S&P Egypt Sovereign Bond Index	867.5	-0.1% (YTD: +11.6%)
S&P MENA Bond & Sukuk	143.0	-0.2% (YTD: +2.2%)
VIX (Volatility Index)	18.09	-0.3% (YTD: +4.3%)

THE CLOSING BELL-

The EGX30 rose 0.9% at yesterday’s close on turnover of EGP 3.8 bn ( 17.6% below the 90-day average). Local investors were the sole net buyers. The index is up 6.4% YTD.

In the green: Beltone Holding (+8.1%), Fawry (+7.8%), and Ibnsina Pharma (+6.3%).

In the red: Egypt Kuwait Holding -EGP (-3.0%), Eastern Company (-2.9%), and Mopco (-1.0%).

CORPORATE ACTIONS-

#1- SODIC to consolidate seven subsidiaries: SODIC received the green light from the General Authority for Investment and Freezones to absorb seven of its subsidiaries, it said in an EGX disclosure (pdf). The merged entities include Sodic for Development and Real Estate Investment, Sodic Polygon, Soreal for Real Estate Investment, Sixth of October for Development and Real Estate Projects Company (SOREAL), Tabrouk Development, La Maison, and Al Yosr.

#2- United Bank will distribute a dividend of EGP 0.75 per share on its 2024 earnings, according to an EGX disclosure (pdf). The dividend will be doled out to eligible shareholders on 18 June.

#3- ADIB Egypt wants to double its authorized capital to EGP 20 bn and its issued and paid-up capital to EGP 12 bn from EGP 6 bn. The move awaits the green light from the EGX’s listing committee.

Tags:

China emerging markets ETFs Financial Markets Planet Finance

HARDHAT

Cairo’s real estate market picks up the pace in 2025 as inflation cools and EGP stabilizes -JLL

Real estate consultancy firm JLL put Cairo’s real estate market under the spotlight in its latest report (pdf) for the first quarter of the year. While the real estate market appeared more resilient than anticipated months ago with cooling inflation and more stable EGP, debates about the future growth of the sector have become more complicated, with the residential, commercial, hospitality, and retail markets each being affected by very different trends

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

ADMINISTRATIVE REAL ESTATE IS BACK ON THE UP IN 1Q 2025-

The administrative real estate market in Cairo has begun to show a noticeable recovery, with approximately 58k sqm of new space coming online during the first quarter of 2025. This brings the total supply to around 1.9 mn sqm, JLL MENA’s head of marketing Anood Haddad said during a presentation before the release. Haddad anticipates a market surge in supply by the end of 2025, following the completion of projects in the new capital and New Cairo.

Large companies — particularly multinationals — are now showing a preference for modern, flexible administrative spaces in central locations. This shift is creating a high-quality demand that is driving up average rent prices. The post-pandemic work environment has fostered a shift toward hybrid schedules, resulting in an increased demand for shared spaces and fitted-out offices, Haddad indicated.

Cairo’s office market is also experiencing a boom in rental prices — fueled by increased demand and limited market supply. The first quarter of the year saw the addition of 10.5k sqm to the office market, with an additional 615.3 sqm expected by year-end. This should help narrow the gap between supply and demand for grade A spaces. Average vacancy rates for grade A office spaces also fell from 10.9% to 8.6% during the previous quarter, pushing average rental prices for grade A spaces up by 4.7% and prime spaces by 2.9% compared to last year.

RESIDENTIAL SECTOR SHOWS STRONG PERFORMANCE DESPITE HEADWINDS-

The residential real estate market in the capital continues to see significant momentum, driven by population growth and robust local demand — accounting for over 95% of buyers, according to speakers at the event. Residential properties, especially in new cities such as New Cairo, Sheikh Zayed, and the new capital, are seeing a remarkable increase in prices — ranging between 15-20% annually — due to rising construction costs.

This trend is projected to continue throughout 2025, with developers focusing on delivering ongoing projects and launching new phases. This comes amidst increasing demand from middle- and upper-income buyers seeking homes in serviced, gated communities. This anticipated growth is underpinned by strong local and foreign demand and improving economic conditions. Forecasts suggest that developers who offer smaller, affordable, finished townhouses and apartments within mixed-use developments will have a competitive edge.

BY THE NUMBER- About 7.5k new residential units were delivered in 1Q 2025, bringing the total offerings to over 300k units. Meanwhile, sale and rental prices in key areas like Sixth of October and New Cairo continued their upward trajectory, achieving moderate y-o-y growth — reflecting sustained demand. An additional 28.5k new units are expected to be added this year, predominantly in east Greater Cairo — further expanding the market’s absorption capacity.

The rising cost of living has triggered a significant shift in buying preferences, with many buyers now seeking to rent in upscale neighborhoods — often beyond their purchasing capacity — to sustain a higher standard of living. As a result, more property owners are renting out units, offering possibilities for tenants looking to upgrade their lifestyles and for owners looking to maximize returns on investments.

HOSPITALITY IS ALSO SEEING A RECOVERY-

The hospitality sector is experiencing a notable improved performance — bolstered by the recovery in tourism and an influx of visitors from European and Gulf markets. The quarterly report indicated that hotel occupancy rates have steadily climbed since the beginning of the year, particularly in Cairo, Hurghada, and Sharm El Sheikh.

AND- The year 2025 is expected to bring more progress fueled by new investments in luxury and mid-range hotels, alongside the resurgence of cultural and business tourism in the country. Global hospitality brands are also showing increased interest in Egypt as a regional hub — especially with planned expansions in the new capital.

BY THE NUMBERS- The opening of two new five-star hotels in 1Q 2025, the Nile Hilton Maadi Cairo and Sofitel Cairo in Downtown, added approximately 870 rooms — providing a significant boost to Cairo’s hospitality sector. Another 650 rooms in the four- and five-star categories are anticipated to come online by the end of the year, increasing the sector’s total supply beyond the current 27.8k rooms, as stated in the firm’s quarterly report.

RETAIL SECTOR EXPERIMENTS WITH INTERACTIVE SHOPPING MALLS-

Developers are focusing on offering varied visitor experiences, blending entertainment and dining with traditional shopping. Major shopping malls have maintained stable tenancy levels and shown slight performance improvements, despite challenges coming on the back of citizens’ weakened purchasing power.

Demand is expected to remain driven by local and international brands seeking expansion, particularly in Greater Cairo and coastal cities, according to JLL. The integration of retail with residential and administrative spaces within master-planned projects is set to become the prevailing market trend in the coming years.

BY THE NUMBERS-The retail sector in the capital saw modest growth in 1Q 2025, with 27k sqm of newly added spaces, bringing the total supply to 3.22 mn sqm. East Greater Cairo, notably New Cairo and the New Administrative Capital, is expected to lead future growth in the sector. This will be driven by the addition of new spaces in commercial complexes, ongoing expansions in existing projects, and the emergence of community shopping centers. Smaller, open-air development projects are outperforming their larger counterparts. The sector’s gradual recovery is evident in improved sales, demand, and occupancy, with the average vacancy rate declining to 7.2% in the first quarter.

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CALENDAR

MAY

22 May (Thursday): Central Bank’s Monetary Policy Committee to meet to decide interest rates

25 May (Sunday): Social Education Summit 2025, Cairo, Egypt

30-31 May (Friday-Saturday): Africa Business Summit, London, UK

Egyptian Exporters Association (Expolink) exhibition, Italy

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo

May 2025: Egyptian-US Investment Forum

JUNE

2-4 June (Monday-Wednesday): Manufacturing and packaging forum ProPak MENA and Fi Africa 2025, Egypt International Exhibition Centre.

3 June (Tuesday): S&P Global to release PMI data for May recording non-oil private sector activity

10 June (Tuesday): Capmas expected to publish inflation data for May

MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

Realme to open smartphone factory

IFC President Makhtar Diop to visit Egypt

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum

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

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

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

SEPTEMBER

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

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh 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 Centre.

25 December: (Thursday): Monetary Policy Committee’s eighth meeting.

EVENTS WITH NO SET DATE

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

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

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

Mid-2025: EGX launches sustainability index.

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

1H 2025: EGX launches a sharia-compliant sustainability index.

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

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

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

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

2027

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

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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