Madbouly sees Gaza’s reconstruction taking three years

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What We're Tracking Today

Egypt’s central bank will review rates today

Good morning, friends. We have another packed issue for you this morning to close out the week. In today’s issue we have Prime Minister Moustafa Madbouly’s estimate of how long it would take to rebuild Gaza, news of the region’s first carbon capture project, and the breakdown of Moody’s affirming Egypt’s rating and outlook. We also spoke to Karen Weick, co-founder and president of the Egyptian-Swiss Business Circle, to learn more about her efforts to build a bridge between Egypt and Switzerland and her morning routine.

PSA-

WEATHER- Cairo is in for a windy day, with a high of 20°C and a low of 11°C, according to our favorite weather app.The capital could also be in for some light rain, according to the Egyptian Meteorological Authority (EMA).

Don’t let the few sunny days we’ve had trick you into thinking winter is almost over: Brace yourself for a cold snap starting Friday, with the EMA warning of temperatures dropping 3-4 degrees nationwide.

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

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IN THE HOUSE-

The House’s Manpower Committee has signed off on the re-drafted labor law. The 267-article bill will now be sent to the House for a final vote.

REMEMBER- The government pulled the bill from the House of Representatives back in 2023 to be re-drafted after backlash from the business community, which said the original version was lopsided in favor of workers. Prior to the redraft, the bill would have introduced new labor rights, including legislating mandatory annual raises, caps on working hours, and longer maternity leave and notice periods, among other things. Labor unions have also had sharp criticism of the previous version of the bill.

HAPPENING TODAY-

#1- It’s interest rate decision time for the central bank: The Central Bank of Egypt’s Monetary Policy Committee (MPC) is set to meet today to decide on whether to cut interest rates, after having kept rates stable since its March hike that coincided with the float of the EGP. For its last six consecutive meetings, the overnight deposit rate has stood at 27.25%, the overnight lending rate at 28.25%, and the main operation and discount rates at 27.75%.

Analysts and economists polled by EnterpriseAM were split on which way the MPC will go, with four out of nine surveyed analysts telling us that they expect the bank to cut interest rates between 100-200 basis points on the back of a strong positive base effect and slowing inflation. Three of the participants forecasted that the committee would hold rates, and the last two were on the wall for which way the bank would go.

Fitch Ratings has since put its forecast in the ring, with its prediction that the MPC will cut rates today, the firm said in a research note. The rating agency sees the CBE slashing rates 100-200 bps thanks to a dip in inflation. It also sees inflation falling to 10.6% by the middle of 2026 as currency stability proves resilient despite incoming price hikes.

#2- Today’s the day for the Innovate Together: Business Opportunities BetweenEgypt and Switzerland online event. Organized by the Egyptian-Swiss Business Circle and Kickstart Innovation, the event will gather startups, investors, and public and private players from both nations to explore potential joint business prospects.

SPEAKING OF- We sat down with Egyptian-Swiss Business Circle Co-Founder and President Karen Weick for today’s My Morning Routine. You can check out the interview in the news well, below.

THE BIG STORY ABROAD-

Trump and Zelensky’s war of words is dominating the front pages this morning, as analysts fear it signals a dramatic shift in US foreign policy on Russia and a pivot away from the EU.

Move it or lose it: US President Donald Trump again slammed his Ukrainian counterpart Volodymyr Zelensky yesterday for misusing USD 350 bn aid from the US, saying he “better move fast” on reaching an agreement with Russia, or the “dictator” — as Trump called him — might not have a nation to lead. Zelensky had remarked earlier in the day that the US president “is living in this disinformation space” created by the Kremlin. (Associated Press | Washington Post | Reuters | FT)

Trump’s executive orders are not slowing down: The president said on Tuesday he will impose tariffs on autos “in the neighborhood of 25%” on 2 April, as well as similar tariffs on semiconductors and pharma imports with no clear timeline. The White House announced more executive orders will be signed in a few hours. (Reuters | Washington Post)

OVER IN TECH- Microsoft is out with “Majorana 1,” its first quantum chip. The multinational giant claims it had to create a new state of matter called the “topological state” to develop the chip, whose components were manufactured in the US. (CNBC | NY Times)

Somabay is making a splash at ITB 2025, bringing its diverse hotel offerings to the global stage. From serene wellness retreats and action-packed adventures to family-friendly escapes and refined seaside stays, our world-class resorts cater to every kind of traveler. Set against the breathtaking backdrop of the Red Sea, Somabay promises unforgettable experiences tailored to your journey. Visit our stand 317 at Hall 6.2 B to discover bespoke stays, exclusive experiences, and the essence of Somabay hospitality.

Madbouly sees the reconstruction of Gaza taking three years

The reconstruction of Gaza can be completed in three years, Prime Minister Moustafa Madbouly said during his weekly presser yesterday (watch, runtime: 35:05). Egyptian universities and consulting firms will take part in preparing the plan for rebuilding and local, Arab, and global firms could help rebuild Gaza, he said.

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

The price tag? While Madbouly didn’t disclose the cost of rebuilding Gaza, earlier this month, Talaat Moustafa Group CEO Hisham Talaat Moustafa proposed a USD 27 bn plan to rebuild Gaza. And a Reuters report out earlier this week put the price tag at some USD 20 bn.

Remember: Last week Egypt said it will propose “a comprehensive vision for the reconstruction of the Gaza Strip in a manner that ensures the Palestinian people remain in their homeland and aligns with their legitimate and legal rights.” Egypt has already begun clearing rubble and rebuilding infrastructure in Gaza, with heavy equipment working to open roads for aid entry.

“From a technical and engineering perspective, we possess the capabilities needed to restore Gaza … within three years. Companies today — whether Egyptian, Arab, or those from countries in our region or the Islamic world — have the expertise and capabilities. If they join forces, they can carry out the reconstruction process within the estimated timeframe,” Madbouly said.

EGYPT, SPAIN INK STRATEGIC PARTNERSHIP

President Abdel Fattah El Sisi wrapped up his state visit to Spain with the signing of a strategic partnership between the two countries, alongside Spanish Prime Minister Pedro Sánchez, according to an Ittihadeya statement. The two leaders were also in the presence of the signing of several MoUs in various fields.

“Our shared objective is to forge deeper economic and investment collaboration,” El Sisi said during a press conference at the tail end of his official state visit to the Spanish capital Madrid. The president name checked renewables, transport, CIT, and water management as sectors where Egypt wanted to cooperate with Spanish companies.

Gaza was also a prominent topic of discussion, with Sánchez expressing Spain's full agreement with Egypt's stance against the forced displacement of Palestinians. The Spanish PM further revealed its support for the upcoming Arab League summit in Egypt, recently delayed to 4 March, which is set to focus on Gaza's reconstruction and ensuring Palestinians remain on their land.

ALSO DURING EL SISI’S TIME IN SPAIN- El Sisi met with Spanish King Felipe VI — the two touched on boosting cooperation between the two nations, Gaza and the need to begin reconstruction operations, as well as Egypt’s role in regional stability.

AND- El Sisi also met with representatives from Spanish companies and leaders in the Spanish business community, who he encouraged to increase their investments in Egypt. He expressed Egypt’s readiness to look into possible economic partnerships in SMEs, energy, water desalination, agriculture, fertilizers, textiles, and more and pushed the Spanish side to explore potential investments in the Suez Canal Economic Zone, naming green hydrogen, drug manufacturing, and the manufacture of automotives as potential investments.

CIRCLE YOUR CALENDAR- The Egyptian-Spanish Joint Business Council will meet in Cairo later this year during King Felipe’s anticipated visit.

WHERE TO NEXT? El Sisi is reportedly heading to Riyadh today to take part in talks that are expected to set the stage for the Arab League summit.

Moody’s affirms Egypt’s rating, outlook

Moody’s kept Egypt’s outlook positive and affirmed its Caa1 rating — seven rungs into junk territory — the credit rating agency wrote. The agency believes the positive outlook “reflects the prospects for an improvement in Egypt's debt service burden and external profile.”

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

REMEMBER- Last March, shortly after the float of the EGP, Moody’s upgraded Egypt’s outlook to positive from negative and affirmed its Caa1 rating. The agency cited the USD 35 bn Ras El Hekma investment and policy measures taken by the central bank for its decision.

Optimism about what’s to come: Moody’s believes efforts taken to tighten liquidity and tame inflation “raise the prospects of durably lower inflation and interest rates, as the central bank's monetary policy credibility and effectiveness strengthen.”

Fiscal measures to bear fruit: The agency sees subsidy reforms and tax reforms helping the government reach a primarily surplus of 3.5% of GDP this fiscal year.

But don’t get too excited: Credit vulnerabilities remain a risk and “plausible developments” could put efforts to improve debt affordability off track, seeing as "material improvements in debt affordability, the debt burden, and external stability depend on further steady enhancements in monetary and fiscal policy effectiveness, which are still nascent.”

What could derail efforts? Moody’s points to challenges arising in case of heightened demand for FX, in case regional developments result in outflows or lower confidence in the EGP. There is also the possibility of fiscal policy challenges as the Madbouly government works to increase social spending as needed.

Looking into Moody’s crystal ball: The agency sees the debt-to-GDP ratio to fall below 80% in the fiscal year 2026-27 from a forecasted 84% for the current fiscal year. It also sees interest-to-revenue to dip under 50% in FY 26-27 from 63% this fiscal year and external debt service to peak this fiscal year at USD 33 bn.

How Egypt’s commercial banks are bracing for a potential rate cut

The banking sector will need to make some changes in the event of a rate cut: With the prospect of a monetary easing cycle looming large, commercial banks are expected to take several measures to prevent a decline in their revenues, after an extended period of high earnings achieved due to high interest rates on loans and treasury bills, sources in the banking sector told EnterpriseAM.

REMEMBER- Analysts are divided over whether the central bank's Monetary Policy Committee (MPC) will cut rates this week, with four of the nine analysts we surveyed penciling in a rate cut in the upcoming meeting on Thursday. Some analysts are predicting that the CBE will cut interest rates by 100-200 basis points (bps), pointing to a strong positive base effect and slowing inflation as factors that could influence the decision. Others believe that the recent inflation data not slowing down at the expected pace will prompt the bank to wait until the next time the MPC meets in April.

Should a rate cut take place, banks will be looking to reduce costs: Banks will be focusing on expanding lending while reducing their costs as much as possible by monitoring their expenses to preserve profit margins, our sources said. However, revenues may not be as affected as many expect, as lower interest rates will affect both deposit and lending rates, Al Baraka Bank CEO Hazem Hegazy told EnterpriseAM.

Lenders will also turn to bonds to lock in the highest possible yield and could move to issue variable-yield certificates of deposit instead of fixed-rate ones during the CBE’s easing cycle, a senior banking executive told EnterpriseAM. Banks could also initiate interest rate cuts on savings certificates before the MPC begins its cutting cycle, with the aim of reducing the cost of their deposited funds, banking expert Hany Abou El Fotouh told us. Additionally, banks could increase their investments in long-term bonds, fixed-income securities, or any assets that provide high returns to compensate for the expected decline in loan earnings, he added.

Some banks have already started cutting interest on CDs: Banque Misr, CIB, and QNB Alahli — to name a few — have all slashed rates on their certificates of deposit this month as they prepare for the CBE to start its easing cycle.

Launching additional products could be another solution for lenders: Banks could focus on diversifying their revenue sources by offering investment banking services, trade financing, digital banking services, and seeking new investments to boost their revenues, Abou El Fotouh said.

However, banks seem to be exercising caution with regard to launching new products as they remain alert over the overall macro picture and the heightened risks currently present in the market, one source told us. Meanwhile, banks are no longer as keen on acquiring or financing firms operating in the non-banking financial sector, they said, adding that the strict regulatory measures imposed by the Financial Regulatory Authority (FRA) have lessened the appeal for banks to invest in the NBFS sector.

REMEMBER-Last February, the CBE issued a fresh batch of regulations targeting the financing provided to financial leasing firms from banks, in a bid to better govern the funds given to financial leasing firms and mitigate associated risks. Under the regulations, the total credit facilities and investments made in the securitization portfolios of leasing companies should not exceed 5% of the bank’s total portfolio of loans and credit facilities and no more than 1% of a bank’s credit portfolio can be granted to a single financial leasing company. This was followed by the Financial Regulatory Authority issuing fresh controls for banks that take part in NBFS.

AND- The FRA suspended issuing new licenses for companies seeking to operate in consumer finance or microfinance for one year last October. It also restricted the transfer of credit portfolios from NBFS players to banks.

Despite high borrowing costs, there has been an increase in overall credit volumes, which suggests that the high cost of financing will ultimately be borne by the consumer, banking expert Mohamed Abdel Aal told EnterpriseAM. This, in turn, could become a factor contributing to high inflation as businesses raise prices to maintain profitability, he said.

Shard Capital, Alqahtani Holding ink framework agreement for USD 7 bn petrochemical complex

UK-based Shard Capital and Saudi Arabia-based Alqahtani Holding inked a framework agreement for a USD 7 bn petrochemical production complex in New Alamein with the Oil Ministry-backed Egyptian Petrochemicals Holding Company and the Investment Ministry, the Oil Ministry said in a statement. When the project first came to light, it was reported that the facility would produce 1.5 mn tons of petrochemical products and another 1 mn tons of petroleum products, including kerosene and mazut, per 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- The project has been in the works for a while now, with the Egyptian Petrochemicals Holding Company inking an agreement with a British consortium that included Shard Capital to develop the complex in 2020 — it was valued at USD 8.5 bn back then.

Alqahtani Holding is a relatively recent addition to the project: We first got word of the group’s involvement in the project last December from an Oil Ministry statement. When the project first emerged five years ago — also at the Egypt Energy Show — Shard’s private sector partner for the project was the UK’s BSW Group.

The project will be private sector led and private sector funded, with British, Emirati, and Saudi investors backing the project, Shard’s legal advisor Zaki Hashem said in a separate statement (pdf).

But there’s still a lot we don’t know about the project, including a timeline or how the ownership will be split.

Egypt is getting the Middle East’s first carbon capture project

Mopco, ThyssenKrupp to set up region’s first carbon capture project: Misr Fertilizers Production Company (Mopco) signed a cooperation agreement and an MoU with Germany’s ThyssenKrupp to develop a USD 220 mn carbon capture project, the first of its kind in Africa and the Middle East, according to an Oil Ministry statement.

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

A step toward lower emissions: The project will help Mopco capture CO2 from its ammonia plant. The project is expected to cut emissions by 150k tons per year, increase urea production by 10%, and improve natural gas efficiency by another 10%. The project will also upgrade Mopco’s three urea plants to produce TGU, a key component in AdBlue, which is used to reduce harmful nitrogen oxides from vehicle emissions.

A helping hand: The agreement will see ThyssenKrupp conduct the feasibility studies needed for the project, as well as handle the engineering designs and provide technical support.

Carbon capture? Carbon capture, storage, and utilization units trap CO2 that is released by factories and power plants, preventing it from reaching the atmosphere. The captured CO2 can either be used in the production of fuels, chemicals, concrete, and other materials — or it can be stored deep in the earth. Carbon capture makes it possible to make polluting industries a little less polluting and opens up potential additional revenue streams, but it’s a new technology that is still expensive.

AUC Onsi Sawiris School of Business and World Organization of the Scout Movement are empowering future leaders

The AUC Onsi Sawiris School of Business Executive Education has partnered with the World Organization of the Scout Movement (WOSM) to develop the skills of young leaders.

Trust, respect, and cooperation — the movement’s core values, were used as the core of a curriculum that is specifically designed to equip young leaders with the skills needed to drive change and inspire others in their communities.

The result was a new Professional Program in Digital Media and Digital Marketing, designed to address the unique needs of scouting. The program sharpens key skills in communication, team management, strategic thinking, and ethical decision-making.

13 participants were part of the program’s inaugural session that took place in September 2024. The program, which included 46 hours of hands-on training, covered areas such as digital marketing strategies, social media management, content creation, and advocacy campaigns.

Do you need a bespoke training program to address the specific needs of your business or organization? Feel free to contact us or visit our website here.

BNP Paribas’ two cents on Egypt’s economic outlook over the next two years

An air of cautious optimism characterizes Egypt’s economic outlook: Egypt’s economy is currently enjoying positive momentum with recent inflation data as well as the relative stability of the exchange rate representing positive indicators for the economy moving forward, French banking giant BNP Paribas said in a research note seen by EnterpriseAM. While support from international donors and institutions has aided Egypt’s path to economic recovery, deep-seated structural problems pertaining to the country’s public finances and external account position will only be resolved “very gradually,” the bank said.

FX liquidity, stability are pivotal factors on our path to recovery: FX liquidity and the continued stabilization of the foreign exchange market will be the key factors for sustaining Egypt’s recovery in the next two years — a recovery that the bank said will be driven by household consumption, which has already shown signs of recovery in the first half of the current fiscal year. However, the bank expects a “more balanced recovery” to take place starting in 2026.

Investment is expected to remain slow in the short term: Egypt’s fiscal consolidation efforts under its program with the International Monetary Fund will slow public sector investment in the short term, while “productive investment” from the private sector is not expected to pick up starting 2026. Meanwhile, Egypt’s capacity utilization — that is, the extent to which the economy is using its productive capacity — remains below 70% on average, well below the minimum of 90% needed to trigger an investment drive, the bank said.

BNP sees gradual GDP growth, inflation slowdown over the next two years: The bank sees GDP growing 4% in FY 2024-25, followed by a “moderate acceleration” to 4.7% growth in FY 2025-26. The bank also sees inflation slowing significantly to 19.8% this year — down from 33.6% last year — before dropping even further to 10.3% in 2026, placing it just over the Central Bank of Egypt’s target of an average of 7% ±2 percentage points by 4Q 2026.

REMEMBER- Inflation continued to dip in January — but at a considerably slower rate — with the latest reading coming in at 24.0%, down from 24.1% in December. While this figure marks the nation’s lowest inflation reading since December 2022, it still represented a loss of momentum in the country’s inflation slowdown, with the figure coming in higher than many analysts expected.

Meanwhile, there’s no clear consensus on the country’s GDP outlook over the next two years: Capital Economics penciled in a prediction of 5.3% growth for FY 2025-26, slightly higher than the IMF and the World Bank’s respective predictions of 4.1% and 4.2%.

“Cautious optimism” appears to be a common sentiment among analysts over Egypt’s economic outlook: Morgan Stanley echoed a similar view describing the overall sentiment over Egypt’s economy among local stakeholders during its recent trip to Cairo. Similarly, Morgan Stanley projected cooling inflation and significant rate cuts taking place this year, while penciling in predictions of further deterioration for the EGP in the process. A separate visit from Goldman Sachs last month voiced similar conclusions, expecting “deep rate cuts” while suggesting that the exchange rate would remain “well-supported” in the short term.

THE POTENTIAL IMPLICATIONS OF TRUMP’S SECOND TERM IN OFFICE-

Donald Trump’s second term as US president is expected to come with multiple implications for Egypt’s economy, with the bank singling out the new administration’s impact on geopolitics in the region as the key factor of concern for Egypt in the short term. Continued support for a ceasefire in Gaza on the US’s part could help strengthen maritime traffic through the Suez Canal and bring up tourism revenues, contributing to a better picture for Egypt’s economy.

On the energy front, the US’ push toward increasing LNG production and export capacity in the future of its energy policy “is unlikely to have a positive short-term impact on Egypt’s energy bill.” While the US is expected to increase its exports of LNG in 2025, “the effects of the new export licences will not be felt for a few years,” the bank said.

The EGP is expected to continue to deteriorate against the greenback: In the short term, the EGP is projected to continue to fall against the USD as a result of the greenback’s “strength on international markets and the increase in the current account deficit,” but the drop is expected to take place at a “moderate pace.”

The new administration is not expected to have a large impact on Egypt’s current account balance: “All in all, we feel that the potential consequences of the new US administration’s policy on external accounts will be relatively balanced and, in principle, limited in scope. They could be fairly positive on the current account balance and neutral or even negative on the financing side.”

Egypt’s top arbitration litigators in 2025, according to Chambers

Chambers ranks Egypt’s leading arbitration litigators for 2025: Chambers and Partners unveiled its 2025 list of top arbitration firms and lawyers in Egypt.

Here’s the rundown:

Youssef + Partners and Zulficar & Partners made it to the research firm’s top-ranked band;
Matouk Bassiouny, Shahid Law Firm, and Shalakany Law made Band 2;
ALC Alieldean Weshahi & Partners and Khodeir & Partners made Band 3;
Jurisera, MENA Associates, Rizkana & Partners, and Zaki Hashem made Band 4.

Star individuals: Youssef + Partner’s Karim Youssef and Zulficar’s Mohamed Abdel Wahab were awarded the top title of “star individuals.”

In Band 1: Shahid Law’s Girgis Abd El Shahid landed in Band 1.

In Band 2: Matouk Bassiouny’s Amr Abbas, Rizkana & Partners’ Hazim Rizkana, Meysan’s Tarek Badawy, and Shehata Attorneys at Law’s Tewfik Shehata landed in Band 2.

In Band 3: Jurisera’s Abdallah El Shehaby, Shalakany Law’s Adam El Shalakany, Khodeir & Partners’ Ahmed Kotb, Youssef + Partners’ César R. Ternieden, ALC’s Yehia Shahine, Yehia Associates’ Ashraf Yehia, and Nour & Partners in association with Al Tamimi & Company’s Khaled Attia landed in Band 3.

Up and Coming: Shalakany Law’s Muhammad Ussama made it to the Up and Coming category.

ADIB appoints Mohamed Hamdy as CEO of ADI Consumer Finance

ADIB taps Mohamed Hamdy as new CEO of ADI Consumer Finance: The Abu Dhabi Islamic Bank (ADIB) appointed Mohamed Hamdy (LinkedIn) as CEO of the bank’s consumer finance arm ADI Consumer Finance, according to a statement seen by EnterpriseAM. The consumer and retail banking veteran has over two decades of experience, which includes his founding and running of consumer finance companies Just Finance and MID Takseet.

TMG reports EGP 504 bn in total sales in 2024

REAL ESTATE-

#1- Talaat Moustafa Group Holding reported EGP 504 bn in total contractual sales for 2024, representing a 253% y-o-y jump, the company said in a disclosure (pdf) to the bourse. The company’s sales accounted for 43% of the total market, which was valued at EGP 1.2 tn for the year.

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

#2- Madinet Masr reported EGP 46.1 bn in sales in 2024, with the real estate developer selling 4.7k units over the period, it said in a statement (pdf). The company said the results reflect “the success of its expansion strategy aimed at developing its land portfolio and diversifying its projects in strategic locations.”

ENERGY-

#1- Egypt has settled another USD 1 bn in overdue payments to foreign energy companies, 40% of which went to Eni, a government official told Asharq Business. This brings total dues settled since June to USD 5.5 bn.

We knew this was coming: A government official had told EnterpriseAM that the government is planning to pay USD 1 bn of arrears owed to foreign energy companies early next month to encourage energy investments in the country. Egypt had repaid USD 1 bn to foreign oil companies last month following a previous payment made in November.

#2- EGPC signs two oil agreements worth USD 13.5 mn: The Egyptian General Petroleum Corporation (EGPC) inked updated agreements with US-based IPR Energy and Tunisian oil and gas firm HBS International worth a combined USD 13.5 mn, according to an Oil Ministry statement.

The details: Under the agreements, IPR Energy will invest USD 10 mn to drill four wells in the Yidma Concession and pay a USD 3 mn signing bonus. As for HBS, it will invest USD 3.5 mn to drill four development wells, one exploratory well, and pay out a USD 2 mn signing bonus.

HSBC to exit Bahraini retail banking business + unveils plan to cut costs

HSBC to sell its retail banking business in Bahrain: The lender will sell its Bahraini retail banking operations to the Bank of Bahrain and Kuwait (BBK), HSBC Bahrain said in a notice to customers. The move is pending the Central Bank of Bahrain’s approval and is expected to be completed in 4Q 2025. The lender didn’t disclose the value of the transaction.

(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: HSBC will transfer its retail loans, deposits, and accounts of some 76k customers to BBK. The sale doesn’t include the bank’s corporate and private banking businesses in the GCC nation.

Part of a wider restructuring agenda: The decision to sell comes as the lender continues a sweeping overhaul as it shifts its focus away from low-returning consumer banking activities. HSBC has also laid off 40 investment bankers in Hong Kong, following an earlier decision to shut down its M&As and equities businesses in Europe and the Americas, a source with knowledge of the matter told Reuters.

And a plan to cut costs: The lender “aims to generate approximately USD 300 mn of cost reductions in 2025, with a commitment to an annualised reduction of USD 1.5 bn in our cost base expected by the end of 2026,” it said in 2024 earnings (pdf). “To deliver these reductions, we plan to incur severance and other up-front costs of USD 1.8 bn over 2025 and 2026, which will be classified as notable items. We are focused on opportunities where we have a clear competitive advantage and accretive returns, and we aim to redeploy around USD 1.5 bn of additional costs from non-strategic activities into these areas, over the medium term.”

REMEMBER- HSBC’s restructuring drive began when Georges Elhedery took over as CEO in September. One of his first major moves as CEO was to reorganize HSBC’s global structure, grouping the lender’s Middle East, North Africa, and Turkey (MENAT) operations with Asia-Pacific operations under a newly formed Eastern Markets division. At the same time, Elhedery merged HSBC’s commercial banking business with its global banking and markets team, creating a new wholesale banking unit to streamline operations. The bank has also been doubling down on wealth and premier banking, particularly in the Middle East and Asia.

The lender reported a “strong 2024 performance," with its income after tax coming at USD 25 bn, up USD 400 mn y-o-y and revenues stable at USD 65.9 bn. As for its financials for 4Q 2024 — the bank reported a net income of USD 600 mn, up USD 400 mn from the same period in 2023, reflecting the one-off USD 3 bn impairment charge related to its stake in Bank of Communications last year, according to its website. Revenues were down 11% y-o-y to USD 11.6 bn, primarily due to foreign currency losses from the sale of HSBC’s Argentina business.

Despite strong earnings, the overhaul has left some investors cautious. HSBC gained 1.38% on the Hong Kong Stock Exchange but fell some 0.21% on the LSE during yesterday’s trading. The restructuring-related expenses the lender is expected to incur are much more than initially anticipated, according to Citigroup analysts.

The big picture: “We are creating a simple, more agile, focused bank built on our core strengths. We continue to take deliberate and decisive steps … I have put in place a smaller, core team of exceptionally talented leaders driven by a growth orientated mindset and a firm focus on dynamically managing our costs and capital,” Elhedery said.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning, Japan’s Nikkei is down 1.3%, the Shanghai Composite is down 0.2%, and so are the Hang Seng (-1.7%) and the Kospi (-0.6%).

EGX30	30,875	+0.9% (YTD: +3.8%)
USD (CBE)	Buy 50.54	Sell 50.68
USD (CIB)	Buy 50.54	Sell 50.64
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,318	-0.1% (YTD: +2.3%)
ADX	9,593	-0.3% (YTD: +1.9%)
DFM	5,389	+0.3% (YTD: +4.4%)
S&P 500	6,144	+0.2% (YTD: +4.5%)
FTSE 100	8,713	-0.6% (YTD: +6.6%)
Euro Stoxx 50	5,461	-1.3% (YTD: +11.5%)
Brent crude	USD 76.08	+0.3%
Natural gas (Nymex)	USD 4.26	+6.8%
Gold	USD 2,936	-0.4%
BTC	USD 96,382	+0.8% (YTD: +3.1%)

THE CLOSING BELL-

The EGX30 rose 0.9% at yesterday’s close on turnover of EGP 4.5 bn (24.6% above the 90-day average). International investors were the sole net buyers. The index is up 3.8% YTD.

In the green: Alexandria Container and Cargo Handling Company (+5.6%), Orascom Development Egypt (+5.5%), and EFG Holding (+3.8%).

In the red: Juhayna (-2.6%), Beltone Holding (-2.6%), and EgyptAlum (-2.1%).

CORPORATE ACTIONS-

The EGX’s listing committee approved Ezz Steel’s request to delist its 542 mn shares from the bourse, according to an EGX bulletin. Shareholders objecting to the delisting or unwilling will have their shares purchased at EGP 138.15 apiece. The company is moving forward with the voluntary delisting of its shares from the EGX and the LSE.

My Morning Routine: Karen Weick, co-founder and president of the Egyptian-Swiss Business Circle

Karen Weick, co-founder and president of the Egyptian-Swiss Business Circle: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Karen Weick (LinkedIn), co-founder and president of the Egyptian-Swiss Business Circle and executive board member of SwissCham Egypt.

The best way to introduce myself is through what we all share — a love for Egypt. I was born in Switzerland and arrived in Egypt 25 years ago with my husband and two children when he joined Vodafone. We were just a typical expat family, but those first six months were tough. I left my career, sold my shares in a Zurich-based company, and stepped into motherhood in a country I had never been to before. We had six weeks to pack up and move, and I’ll never forget landing in Cairo late at night. My husband, who had arrived earlier, took the kids and sent me to Omar Effendi to set up our home — so there I was, at midnight, trying to process my new reality. It took time, but now Cairo is home. My husband works in Switzerland, my kids are spread across the world, but if they want to see me, they have to come home — back to Egypt. They may look European, but trust me, their DNA is very Egyptian.

I’ve been deeply involved in the Swiss Egyptian Chamber of Commerce, working to strengthen business ties between Egypt and Switzerland. To expand on this mission, I founded the Egyptian-Swiss Business Circle (ESBC) at the start of this year. I believe in building substance before promotion, which is why we're launching Innovate Together: Business Opportunities Between Egypt and Switzerland, our first ESBC event. It’s more than just a webinar, it’s the start of a new bridge between the two countries. With strong backing from both embassies, our goal is clear — practical, result-driven discussions, not vague, abstract talks.

This event is about startups, innovation, and investment — with a focus on real, actionable connections. Attendees will gain direct access to Swiss investors who can help them scale beyond Egypt. We’re bringing in key decision-makers, including the heads of investment from the French-speaking region and Zurich. The response has already exceeded expectations — we aimed for 30 participants and now have nearly 100, evenly split between Egypt and Switzerland. But real success lies in what comes next: securing investments, making agreements, and building a lasting bridge between the two markets. This is just the beginning.

The ESBC grew out of my work in Egypt over the years. I’ve done business development for startups, represented Swiss citizens in Egypt, and served on the Swiss Egyptian Chamber of Commerce (SwissCham) board for five years. When I joined just before Covid, I had to rethink everything. Instead of being just another chamber of commerce, we wanted to embody Switzerland itself: small, precise, and highly effective.

Egypt and Switzerland share a surprising economic similarity — both rely on family-owned SMEs alongside major corporations. To foster real trade and investment ties, we needed a strong Swiss network. That’s where ESBC comes in, acting as a bridge for businesses on both sides. Building it hasn’t been easy, but we’ve had immense support from the Egyptian embassy in Switzerland and the Egyptian commercial office in Geneva. Our Innovate Together event is just the start. Later this month, we’ll hold a soft launch at the Egyptian embassy in Bern. We’re moving fast but with purpose — this isn’t about warm air, but real impact.

Connecting Egyptian businesses in Switzerland isn’t easy. The country has French-, German-, and Italian-speaking regions, and people tend to stay within their networks. We’re working to bridge these divides by bringing different regions together under one strong business network. But it takes effort — we have to seek out each member individually. If anyone reading this knows an Egyptian in Switzerland or is one themselves, we’d love to have them join us.

Switzerland and Egypt recently marked 90 years of diplomatic and economic ties. Switzerland has played a significant role in Egypt’s economy since the early 20th century, from sending architects to shaping the textile industry. Even today, major Swiss companies like ABB, Nestlé, Lafarge, and Novartis have a strong presence in Egypt. But investment is a two-way street — Egypt has a lot to offer, and that’s why we’re organizing this event. I truly believe Egypt is like an undiscovered jewel, full of potential, but Swiss investors tend to be risk-averse. Our goal is to change that narrative, to show them the real Egypt beyond what international headlines might suggest.

When you mentioned morning routines, I panicked — I don’t have one. Routine is the opposite of who I am. No two days look the same, and I like it that way. That said, I do wake up early for the quiet — it’s my time to think, focus, and prepare for the day. Reading EnterpriseAM is a constant, usually with coffee in hand. In the perfect version of my morning, I’m barefoot on the grass, touching the earth, sipping coffee in one hand, and reading EnterpriseAM in the other. I take care of my animals and myself, and when it comes to work, I’m disciplined. If I have a meeting, I’m there — no excuses.

Every morning, I wake up with the goal of meeting someone new. If my schedule is filled with people I already know, I get bored. And I don’t want to be bored — life is too short for that. For over 25 years, I’ve made sure every day brings fresh connections, new faces, and different perspectives. It doesn’t have to be VIPs or high-profile people — just anyone with a story to share. The older you get, the faster time moves, and the more you realize you have to live fully — before it’s too late.

I’m driven by opportunities rather than long-term plans. At my age, it’s less about mapping out the future and more about embracing what comes. But once I commit, I’m all in — I always say, “I’m like a virus — once you get me, you never get rid of me.” Right now, I’m focused on growing the ESBC in a solid, meaningful way, seeing where the momentum takes us. Personally, I want to keep building my life here, continue my charity work, meet new people, and stay open to whatever comes next. That’s what keeps things exciting.

I don’t really think about work-life balance — I just live. My work and personal life are completely blended because I love what I do. I never stop at a certain hour or separate business from my personal life — it’s all one. Now that my children are grown, my days flow seamlessly, and I have even more time to do what I enjoy. If I meet someone through work, they become part of my life, not just a contact. If I hated what I do, this approach would be exhausting, but because I love it, it feels natural.

I unwind with pilates, gardening, and painting — though painting feels more like a second job than a hobby. I studied art in Florence and come from an artistic family — my father was one of the architects of the Centre Pompidou in Paris, and my mother was an art teacher at the Louvre. With roots like that, art inevitably found its way back to me. I continue honing my skills with a professor from the Fine Arts University in Zamalek.

I also organize Printemps des Artistes, a pop-up exhibition I’ve run in Egypt for ten years. Founded by French-speaking women from Morocco, Belgium, Switzerland, and France, the name means “Spring of Artists.” This year, on 15 May, we’ll showcase 70–80 Egyptian artists and around 500 artworks. Artists receive full payment, and 20% of sales go to charity — this year, supporting homeless children and young women in Cairo. It’s my way of giving back to Egypt, a country that has given me so much. It’s not exactly relaxing — it’s a lot of work — but it’s incredibly fulfilling.

The best advice I ever got was from my father — stay simple, stay detached, and keep life as lean as possible. Don’t get weighed down by useless information, objects, or goals. Be clear about who you are and what you want. When I was younger, I thought it was boring, but now I see how true it is. It’s not a flashy quote from Steve Jobs, but it’s wisdom I hope to pass on to my kids — whether or not they’re ready to listen.

CALENDAR

FEBRUARY

20 February (Thursday): The central bank’s Monetary Policy Committee meets to decide interest rates.

20 February (Thursday): The Egyptian-Swiss Business Circle and Kickstart Innovation are hosting Innovate Together: Business Opportunities Between Egypt and Switzerland

21-23 February ( Friday-Sunday): The First Arab Fraud Combating Summit.

BP to bring the second well of its Raven natural gas project online, with additional production capacity expected.

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

Subscription period for Your Home in Egypt initiative opens.

MARCH

3 March (Monday): Central bank to publish foreign reserve data for February.

4 March (Tuesday): Egypt will host emergency Arab League summit on Gaza.

4 March (Tuesday): S&P Global to release Egypt’s PMI figures for March.

10 March (Monday): Capmas expected to release inflation data for February.

Arla Foods’ deadline for Domty acquisition offer.

Operation of phase one of the Amotope wind farm.

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

10 April (Thursday): Capmas expected to release inflation data for March.

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

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

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

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

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

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

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

MAY

10 May (Saturday): Capmas expected to publish inflation data for April.

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development.

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

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

JUNE

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

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

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

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

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

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

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

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

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

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

NOVEMBER

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

DECEMBER

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

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

December: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

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

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

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

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

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

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

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

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

1H 2025: The Egyptian-US Investment Forum.

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

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

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

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

2027

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

EVENTS WITH NO SET DATE

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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