More details on the social protection package to come?

Wednesday, 26 Feb 2025

More details on the social protection package to come?

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Today at a glance

What We're Tracking Today

Fresh details on the social protection package out today?

Tax

FinMin to reduce penalties for late tax payments by up to 90%.

Investment Watch

Eroglu doubles down on Egypt with USD 120 mn garment factory.

Trade

Gov’t is in talks with Moroccan authorities to release Egyptian exports held up at ports.

LAST NIGHT’S TALK SHOWS

Egypt reportedly rejects Lapid’s proposal for it to manage Gaza in exchange for debt relief.

EGYPT IN THE NEWS

Getting to know Jetcar Kromh the Egyptian company that creates car-shaped jets.

Also on our Radar

PFI Asset management takes over the management of HDB money market fund.

PLANET FINANCE

JPMorgan reclassifies Qatar and Kuwait as developed markets.

HARDHAT

The cement industry is recovering, but challenges remain.

What We're Tracking Today

Preparations are underway for the Grand Egyptian Museum’s grand opening on 3 July

Good morning, friends. In today’s issue we have news of more tax facilities, fresh investments, and what’s happening with Egyptian exports held up at Moroccan ports.

MARK YOUR CALENDARS- The countdown to the Grand Egyptian Museum’s official opening is on, with the government now in full prep mode ahead of the 3 July launch after President Abdel Fattah El Sisi approved the date. Prime Minister Moustafa Madbouly met with key ministers and officials yesterday to lock in logistics, security, and other arrangements. Invites for the multi-day event will go out to world leaders and top officials.

AND- Keep your ears peeled for Madbouly’s weekly presser today: Prime Minister Moustafa Madbouly will likely unveil the details of the awaited social protection package during his weekly presser later today. Madbouly could announce more details on the package set to come into effect with the new fiscal year, as well as an additional package of one-time allowances and expansion to the Takaful and Karama program that could come into effect in March, sources tell EnterpriseAM.

Remember: The Madbouly government is working on a new social protection package of raises in the minimum wage, tax thresholds, social protection coverage, and pensions. While the size of the increase has not yet been decided on, our sources anticipate the government to opt to raise the minimum wage by EGP 1k to EGP 7k, with adjustments for other income brackets.

PSA-

Ramadan hours kick in next week: The EGX will move to its customary shortened Ramadan hours next week, with trading beginning at 10am and ending at 1:30pm. Banks will be open to clients from 9:30am to 1:30pm (9am to 2pm for staff) throughout Ramadan. Shops, restaurants, and cafés will be allowed to stay open until 2am during Ramadan and Eid Al Fitr.

WEATHER- Cairo is in for another cold day, with a high of 19°C and a low of 11°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 19°C and a low of 10°C.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

IN THE HOUSE-

The House of Representatives preliminarily approved the redrafted Labor Law yesterday, after the law got the thumbs up from the House’s Manpower Committee late last week. The law introduces significant reforms across its 297 articles, aiming to balance the rights of workers and employers and ensure a framework that supports both job security and investment growth.

WATCH THIS SPACE-

#1- Egypt and the UAE kicked off talks for a Comprehensive Economic Partnership Agreement, according to a statement. Investment Minister Hassan El Khatib and UAE Economy Minister Abdulla Bin Touq Al Marri chaired the Egyptian-UAE Joint Economic Committee’s fourth session, agreeing to strengthen trade, investment, industry, energy, and infrastructure collaboration.

#2- EKH has plans to step into Europe: Eg ypt Kuwait Holding is planning to make renewables-focused investments in Europe marking the company’s entry into the continent, CEO Jon Rokk told Asharq Business (watch, runtime: 9:00). The company plans to invest USD 150-200 mn over the coming 18 months, he said, adding that the company will unveil its first project in the Saudi market within two months.

DATA POINT-

The number of banked Egyptians continues to rise: Egypt’s financial inclusion rate — the percentage of citizens above the age of 15 who hold bank accounts, mobile wallets, or prepaid cards — jumped to 74.8% by the end of 2024 up from 71% at the end of 2023, according to central bank data (pdf). Some 52 mn adults in Egypt were banked as of December 2024.

Former US ambassador to Egypt Frank G. Wisner has passed away at age 86, the New York Times reports. Wisner, who reportedly died from lung cancer complications, played a significant role in global diplomacy as well US-Egypt relations during his diplomatic career. As ambassador to Egypt from 1986 to 1991, he worked to ease tensions following the US-led invasion of Iraq. His strong ties to Egypt, which included a close relationship with former president Hosni Mubarak, prompted the Obama administration to call on him to negotiate a resolution to the Egyptian revolution in 2011 — long after his retirement from public duty. Beyond Egypt, the veteran diplomat also headed embassies in India, Zambia, and the Philippines.

Give your little ones the chance to stock trade: EFG Hermes has partnered with KidZania Cairo to introduce MENA's first-ever stock trading experience designed for children aged 8-14. The mock stock market will include 35 real companies and allow children to build up their trading portfolios, giving them a taste for investing and stock trading. Trading activities will take place in KidZania Cairo’s new EFG Hermes branch.

What they said: “By partnering with KidZania in Cairo … we are taking a meaningful step toward empowering the next generation with essential financial knowledge in an engaging and interactive manner. Educating children about money, how to manage it, and making it work for them from a young age is crucial for cultivating a new generation that is informed and empowered,” EFG Holding Group Chief Marketing and Communications Officer May El Gammal said.

THE BIG STORY ABROAD-

Ukraine has reportedly agreed to a framework for an economic agreement that will see the US tap its revenues from rare minerals. US President Trump — who pushed hard for the agreement with personal attacks on his counterpart Volodymyr Zelensky — had earlier hinted the Ukrainian President could arrive in Washington as soon as Friday to sign the agreement.

Trump is active as usual: The US president also signed an order yesterday to examine tariffs on copper, and said he will introduce a “gold card” visa program that provides a route to US citizenship for the low price of USD 5 mn. Meanwhile, his controversial USD 4.5 tn tax cut plan narrowly passed the House.

ALSO WORTH NOTING-

Israel and Hamas will exchange four dead Israelis for hundreds of Palestinians, temporarily saving the ceasefire. (Associated Press)
Tesla shares dropped 8% with market cap falling below USD 1 tn, wiping most gains since Trump’s election. (CNBC)

*** 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 look at the challenges facing Egypt’s cement industry.

Tags:

Grand Egyptian Museum

Ramadan Kareem from Somabay.

Wishing you a month filled with serenity, peacefulness, and joy with your loved ones.

Tax

Egypt’s FinMin to reduce penalties for late tax payments by up to 90%

More tax relief measures near implementation: The Finance Ministry is set to reduce penalties for late tax payments by up to 90% as part of its larger tax relief package, in a move that aims to resolve thousands of disputes resulting from delayed tax return submissions or filing returns without paying the due tax, according to a document seen by EnterpriseAM.

Penalties will be lowered as follows:

Penalties of EGP 16.6k will now range from EGP 1.5k-6k;
Penalties of EGP 33.3k will now range from EGP 3k-9k;
Penalties of EGP 666k will now range from EGP 25k-100k;
Penalties of EGP 1.2 mn will now range from EGP 50k-150k.

Remember: A number of tax facilities that have to do with SMEs, simplifying tax procedures, and settling disputes will take effect on 1 March, after President Abdel Fattah El Sisi ratified three new laws earlier this month. The facilities will expand the scope of tax exemptions for small and medium enterprises, simplify tax procedures, and help settle disputes. The Egyptian Tax Authority (ETA) has already opened its online platforms to begin receiving applications and forms related to implementing the new tax relief measures.

The law amendments also introduce a 12.5% compensation rate for uncollected or withheld amounts, in addition to the principal tax amount and late payment fees — a significant reduction from the previous penalty, which involved a payment worth 100% of the due taxes, which led many taxpayers to risk prosecution rather than pay the settlement.

More reforms are on the way: A centralized e-clearance system is set to launch by 2Q 2025, with pilot operations already underway at 50 major companies, informed sources previously told EnterpriseAM.

ALSO- New regulations for tax offenses unrelated to outstanding dues: The Finance Minister or a representative of the ministry will be given the authority to approve settlements that pertain to tax-related offenses that don’t involve outstanding tax dues, with the settlements set to require a compensation payment ranging from half to twice the minimum penalty before a criminal case is filed.

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Investment Watch

Eroglu doubles down on Egypt with USD 120 mn garment factory

Turkey’s Eroglu is setting up a USD 120 mn garment factory in Qantara West: Eroglu Garment — a subsidiary of Turkish clothing manufacturer Eroglu Holding — is investing some USD 120 mn in a new integrated garment factory in the Qantara West Industrial Zone, according to a statement from the Suez Canal Economic Zone.

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

By the numbers: The factory is set to churn out 30 mn garments a year and create 5k jobs, running on a "from yarn to garment" model that spans the entire production chain — from spinning to finished product.

Already mulling over the second phase: The USD 60 mn second phase of the factory is already being studied, according to the statement.

We saw this coming: Turkish ambassador to Egypt Salih Mutlu Şen said last month that Eroglu Holding was mulling plans to invest USD 120 mn in the Qantara West Industrial Zone.

This is just the latest in a spate of recent investments by Eroglu Holding, with the firm beginning construction on a USD 40 mn garment factory in Qantara West in August — set to launch trial operations in April 2025 — and breaking ground on a USD 51 mn garment factory in the zone in November.

DATA POINT- The Qantara West Industrial Zone currently houses 12 projects with combined investments of USD 511 mn, SCZone head Walid Gamal El Din said.

IN OTHER INVESTMENT NEWS-

India’s Volkov to set up USD 5 mn project: India’s Volkov will set up a USD 5 mn silicomanganese and ferrosilicon — elements used in the production of steel — production plant in East Ismailia’s Technology Valley, according to a statement. The project will create 150 direct jobs and will be the first in Tech Valley.

More to come: The company has two more projects in the metal industries sector planned, which should bring its total investment in the country to USD 65 mn. Volkov is expected to ink the contracts for the news projects within the coming months, according to the statement.

Tags:

industry investment watch Suez Canal Economic Zone

Trade

Gov’t is in talks with Moroccan authorities to release Egyptian exports held up at ports

Egyptian goods are held up at Moroccan ports: The government sent a high-level delegation to Rabat earlier this week to push for the removal of recent restrictions that have left Egyptian exports piling in Morocco’s ports for two weeks, a government source told EnterpriseAM. Ongoing talks between the delegation — representatives from the finance, industry, and investment ministries — and Moroccan officials show signs of a breakthrough, with Morocco releasing shipments of Egyptian dates.

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

A snapshot of the goods in question: Nearly 150 containers loaded with ceramics, food products, and insulation materials are stuck at the ports.

What triggered the standstill? Morocco’s measure is an attempt to rebalance the two countries' trade relationship, which currently shows a trade surplus in Egypt's favor, said Ahmed Zaki, secretary-general of the Exporters Division at the Cairo Chamber of Commerce.

An attempt to strengthen Morocco’s car exports? Zaki noted that weak demand in Egypt for Moroccan cars — our top import from the country, according to the Observatory of Economic Complexity — is also behind the blockage. Meanwhile, our government source indicated that the move was prompted by an alleged lack of cooperation on Egypt’s part in clearing Moroccan cars, a claim he shot down. “No Moroccan cars are held up in Egypt’s ports,” our source said, adding that banks are meeting importers’ needs for USDs.

Proceeding with caution: In response to the blockage, the General Organization for Export and Import Control has suspended the examination of new shipments destined for Morocco until further notice, according to an official decision seen by EnterpriseAM.

This isn’t the first time Morocco has imposed barriers on Egyptian exports: Our Arab neighbor halted the release of Egyptian air conditioners from its ports three years ago due to local component percentage issues, Zaki said. Morocco also charges a 35% anti-dumping duty on Egyptian carpets, a fee that was introduced in 2022 to protect Moroccan producers from what was perceived as unfair competition.

Egyptian-Morocan trade at a glance: Trade between the two nations jumped 27% during the first 11 months of 2024, reaching around USD 973 mn, according to Capmas data seen by EnterpriseAM. Egyptian imports from Morocco almost doubled during the period, soaring 92% y-o-y to USD 42.1 mn during the 11-month period. Meanwhile, Egyptian exports to Morocco rose 20.6%, hitting USD 898 mn over the same period.

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Morocco trade

Telecoms

NTRA received nearly 300k telecom complaints in 2024

NTRA logs nearly 300k user complaints in 2024: The National Telecom Regulatory Authority (NTRA) received almost 300k user complaints in 2024, with operators responding to 94% of cases and resolving issues in an average of 1.5 days, according to the authority’s 2024 User Complaints R eport (pdf). The complaints covered mobile, fixed internet, and landline services, with mobile services accounting for the largest share of grievances.

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

Telecom operators paid some 3.2 mn in compensation to users last year — Orange paid 64% of the refunds owed, while Vodafone was responsible for 19%, Etisalat 16% and Telecom Egypt 1%.

Mobile service complaints came on top: Mobile services generated 130k complaints to make up 44% of total complaints. Among the four major operators, Orange recorded the highest complaint rate at 169 complaints for every 100k subscribers, followed by Vodafone with 113, Etisalat with 73, and Telecom Egypt with 72 complaints per 100k subscribers.

Internet users continued to struggle with service quality: Complaints about fixed internet services accounted for 87.5k cases, or 29% of the total, with an average complaint rate of 752 per 100k users. The NTRA noted that service quality remained the primary issue across providers, with unauthorized line reservations also a frequent source of user frustration. Orange saw the highest complaint rate among all internet providers, registering 2.3k complaints per 100k subscribers, it was followed by Etisalat (1.4k), Vodafone (982), and Telecom Egypt (618).

Landline users reported the longest delays in resolution: Landline service complaints made up 26% of the total, with 78.1k cases recorded. The NTRA reported a complaint rate of 591 per 100k landline users, with an average resolution time of 3.6 days — the longest among all service categories. Users primarily reported service disruptions and delayed activations.

Where did the complaints come from? The highest volume of complaints came from Greater Cairo — with 36% of total complaints — followed by the Delta region with 31% and Upper Egypt with 23%. Fewer complaints were recorded in Alexandria and the Suez Canal region, with the former making up 7% of total complaints and the latter making up 3%.

The NTRA’s hotline was the main route for making complaints: Around 80% of users turned to the NTRA’s hotline to escalate their complaints, while others used digital platforms, including the authority’s website, WhatsApp, the My NTRA app, and social media.

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Etisalat National Telecom Regulatory Authority Orange Egypt Telecom Egypt TELECOMS Vodafone Egypt

EARNINGS WATCH

Ibnsina Pharma's bottom line soared 188% y-o-y in 2024

Ibnsina Pharma posts strong consolidated results for 2024: EGX-listed pharma distributor Ibnsina Pharma's bottom line rose 188% y-o-y to record EGP 614.5 mn in 2024, according to the company’s latest earnings release (pdf). Revenues came in at EGP 55.8 bn, marking a 64.5% y-o-y increase 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.)

More than just numbers: Ibnsina Pharma currently holds a 30.8% share of the national pharma distribution market. It also led Egypt’s pharma and hospitals sector last year and ranked first in public and private hospitals.

What they said: “The gain in market share and acceleration of pharma product re-pricing — which is expected to be more evident in the market in 2025 and 2026 — are key drivers supporting future growth,” the co-CEOs said in the release. “Looking ahead, we are confident that the investments we have made in both our people and technology will enable us to continue leading the market, driving efficiency, and meeting the ever-evolving needs of our stakeholders.”

UNITED BANK REPORTS 2024 EARNINGS-

United Bank saw its net income after tax jump 63% y-o-y in 2024, to record EGP 2.8 bn, according to a disclosure (pdf) to the EGX. The bank’s net interest income rose to EGP 4.8 bn, marking a 47% y-o-y increase.

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earnings earnings watch

LAST NIGHT’S TALK SHOWS

Egypt reportedly rejects Lapid’s proposal for it to manage Gaza in exchange for debt relief

The latest Israeli proposal for post-war Gaza was met with Egyptian rejection: Israeli opposition leader Yair Lapid has proposed that Egypt manages Gaza’s security and civil administration under a UN-backed framework for up to 15 years in exchange for external debt relief. Speaking in Washington yesterday, Lapid proposed that Egypt coordinate with the US on Gaza investments and partner with Israel on security threats. “I’m estimating they’re going to say no and then yes,” Lapid claimed regarding Egypt.

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

“Egypt has categorically rejected Lapid’s proposal for it to administer Gaza, disarm Hamas, and dismantle tunnels in exchange for having all its foreign debt written off,” Ala Masouleety’s Ahmed Moussa said (watch, runtime 6:24). He stressed that Egypt won’t accept anything other than the two-state solution for Gaza, adding that Gaza must remain under Palestinian control (watch, runtime 10:31).

ALSO ON THE AIRWAVES- The nation’s talking heads also touched on a scam that was recently exposed after reeling in a large number of Egyptians with promises of quick returns. The Interior Ministry announced it had arrested the criminal ring behind the scheme, adding that it scammed people out of some EGP 2 bn. Al Hayah Al Youm (watch, runtime 7:32) and Yahduth Fi Misr (watch, runtime 2:58) have coverage.

ALSO- Kelma Akhira’s Lamees El Hadidi bid her viewers farewell as her show goes off air for the duration of Ramada (watch, runtime 0:32). During her final episode for some time, El Hadidi gave her viewers a rundown of the shows and programs that will air during the holy month (watch, runtime 8:04 | 2:06 | 1:14).

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LAST NIGHT’S TALK SHOWS Middle East politics

EGYPT IN THE NEWS

Getting to know Jetcar Kromh the Egyptian company that creates car-shaped jets

No your eyes are not deceiving you, that is a car on water. Egypt’s Jetcar Kromh has been producing car-shaped jets and exporting them to 70 countries, including the US, Canada, and Spain. In a video feature, Reuters interviews owner and founder Karim Amin to learn more about the project and how the jets get made.

Tags:

automotive Manufacturing

Also on our Radar

PFI Asset management takes over the management of HDB money market fund

CAPITAL MARKETS-

PFI Asset Management to manage HDB money market fund: Post for Investment’s PFI Asset Management has taken over the management of Housing and Development Bank's Mawared Money Market Fund, according to a press r elease (pdf). PFI Asset Management now has three funds under its management — Mawared and two of GIG Egypt’s funds.

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

M&A-

Basata ups stake in MadfoatCom: Local fintech player Basata has increased its share in Jordanian electronic payment provider MadfoatCom to 25% for an undisclosed sum, it said in a statement (pdf). The investment is part of Basata’s plans to expand its digital financial services across the region.

The move was part of a larger transaction: Several Jordanian financial institutions also acquired stakes in MadfoatCom, including Jordan Kuwait Bank (JKB), the Social Security Investment Fund, Arab Bank, Housing Bank for Trade and Finance, and Jordan Islamic Bank.

REFRESHER- Basata first acquired 27.1% of the Jordanian company alongside JKB in September. Unconfirmed reports a week earlier said Basata eventually plans to up its stake in the company to 49%, indicating it might be back for more.

STARTUPS-

Investment company Foras plans to invest USD 20 mn in digital media and gaming, launching four digital media products, according to a p ress release (pdf). The investment will be spearheaded by CEO and serial entrepreneur Mohamed Aboulnaga and new board member Magdy Shehata.

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ALSO ON OUR RADAR Basata Foras Post for Investment

PLANET FINANCE

JPMorgan reclassifies Qatar and Kuwait as developed markets

Qatar, Kuwait reclassified as developed markets: JPMorgan Chase has reclassified Qatar and Kuwait as developed markets, with the bank set to remove the two countries from its Emerging-Markets Bond Index (EMBI) over a six month period starting with the month-end rebalancing on March 31, JPMorgan’s Global Index Research team said in a statement seen by Bloomberg.

What this means: New bond issuances from Qatar and Kuwait won’t be included in JP Morgan’s EM index, including the two benchmark-sized sovereign USD-denominated bonds Qatar will sell on Thursday. For Qatar, “the reclassification may potentially spark flows into the country from developed-market bond investors,” according to Bloomberg.

The UAE could be next: The United Arab Emirates’ cost of living ratio has exceeded the EM index threshold for two years in a row — and, if it does so for a third consecutive year, the country would no longer be eligible for the EMBI series, and will be reviewed for a removal from the index.

Investors would also be looking for a higher yield to invest in EM sovereign bonds, with the extra yield investors demand to own EM sovereign bonds set to widen by 11 bps. The bank’s index is tracked widely by those investing in treasures across the world, and the loss of both countries could potentially “increase the average risk in the asset class,” according to Bloomberg. In the EMBI Global Diversified grouping, Qatar and Kuwait hold a weight of 3.2% and 0.6%, respectively. With the potential exit of the UAE — which accounts for 4.1% — the collective exit of the three countries would lead to capital outflows from EMs, and would “narrow the opportunities for bond traders.”

“As investors we were waiting for this to happen,” Anders Faergemann, co-head of EM global fixed income at Pinebridge Investments told Bloomberg. “On paper, the investor base for Qatar and Kuwait will narrow by taking them out of the EM indices but we can still invest in both countries off benchmark.”

ALSO FROM THE REGION-

Adnoc Gas raises USD 2.8 bn in MENA’s largest equity offering year-to-date: Emirati state-owned energy giant Abu Dhabi National Oil (Adnoc) completed the sale of a 4% stake in subsidiary Adnoc Gas to institutional investors, raising USD 2.8 bn, according to a statement. The follow-on offering, which was priced at AED 3.40 per share, was 4.4x oversubscribed. This is the largest equity offering in the MENA region since Saudi Aramco’s USD 12.3 bn secondary share sale last June.

REMEMBER- Adnoc Gas raked in USD 2.5 bn in one of the region’s biggest IPOs in 2023.

ADVISORS- Our friends at EFG Hermes acted as (pdf) joint coordinator and bookrunner alongside BofA Securities, Citi, First Abu Dhabi Bank, HSBC, and International Securities.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning — Japan’s Nikkei is down 1.2%, the Shanghai Composite is looking at gains of 0.5% and the Hang Seng is up 2.2%. Meanwhile, South Korea's Kospi is flat.

EGX30	30,655	-0.9% (YTD: +3.1%)
USD (CBE)	Buy 50.53	Sell 50.66
USD (CIB)	Buy 50.53	Sell 50.63
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,301	-0.2% (YTD: +2.2%)
ADX	9,612	+0.2% (YTD: +2.0%)
DFM	5,342	+0.1% (YTD: +3.6%)
S&P 500	5,955	-0.5% (YTD: +1.3%)
FTSE 100	8,669	+0.1% (YTD: +6.1%)
Euro Stoxx 50	5,448	-0.1% (YTD: +11.3%)
Brent crude	USD 73.02	-2.4%
Natural gas (Nymex)	USD 4.15	-0.5%
Gold	USD 2,931	+0.4%
BTC	USD 89,021	-2.7% (YTD: -4.8%)

THE CLOSING BELL-

The EGX30 fell 0.9% at yesterday’s close on turnover of EGP 3.8 bn (5.2% above the 90-day average). Egyptian investors were the sole net buyers. The index is up 3.1% YTD.

In the green: Rameda Pharma (+9.9%), Edita (+3.5%) and Sidpec (+2.7%).

In the red: CIB (-2.6%), Orascom Development (-2.0%) and Juhayna (-1.8%).

CORPORATE ACTIONS-

SODIC will merge seven of its subsidiaries and expand its business activities to include managing marine assets, operating restaurants and coffee shops, and establishing and managing sports clubs and fitness centers, according to an EGX disclosure (pdf). The company also set its post-merger authorized capital at EGP 25 bn and its issued and paid-up capital at EGP 5.16 bn.

Tags:

JPMorgan Kuwait Planet Finance Qatar

HARDHAT

The cement industry is recovering, but challenges remain

Egypt’s cement industry has been on a path to recovery over the past few years, with company earnings improving, particularly over the last year. In 2025, industry players expect production, local sales, and exports to grow, supported by the reinstatement of the 2008 Building Law and an expected surge in demand. Additionally, Egypt is set to play a key role in reconstruction efforts in several Arab countries — likely to further boost our local cement industry.

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

Breaking down the industry: Despite boasting an annual production capacity exceeding 90 mn tons, local production of cement has never reached full capacity, with production surpassing 56 mn tons prior to 2016 before declining to a low of 43 mn tons in 2023, according to central bank data seen by EnterpriseAM.

Last year, however, has seen production near previous levels: Cement output in Egypt rose 9.5% y-o-y to 55.1 mn tons in 2024, up from 50.3 mn tons the previous year, according to data obtained by EnterpriseAM from cement companies. This represents a nearly 24% jump from the five-year average between 2019 and 2023, which stood at 44.6 mn tons, according to EnterpriseAM calculations using official data from the Central Bank of Egypt.

EXPORTS ARE DRIVING THE TREND-

Exports have been the primary driver behind the production increase in recent years, an industry insider told EnterpriseAM. “Over the past three years, companies have ramped up their export efforts. This was in parallel with Egypt’s ongoing FX crisis, as many cement producers are foreign investors seeking to retain USD revenues,” the source explained. In 2024 alone, cement exports totaled approximately 19.7 mn tons — more than tripling from 2021 levels, when only 6 mn tons were exported. The past three years have also seen a significant shift toward exporting finished cement products.

Export volumes in the past three years have exceeded initial targets, a source at the Federation of Egyptian Industries’ building materials division told EnterpriseAM. In 2024, the sector had aimed to export 15 mn tons — up from 12 mn tons in 2023 — but actual exports surpassed expectations by more than 30%, driven by strong demand from neighboring countries.

Revenues have been slower to rise: Despite the surge in exports — rising by over 220% in the past three years — revenue gains have been more modest, rising only 96% to USD 913 mn in 2024 from USD 465 mn in 2021, according to data from the Export Council for Building Materials seen by EnterpriseAM.

Sector insiders expect demand to grow: Farouk Moustafa, managing director of Misr Beni Suef Cement, told EnterpriseAM he expects demand to grow by 10-15% this year, both domestically and internationally, signaling a continued industry recovery. Regional reconstruction projects are expected to play a key role in this, with rebuilding efforts in Libya — which is on the verge of an economic revitalization — as well as in Iraq and Gaza set to strengthen demand.

How much cement are we talking about here? It’s not yet entirely clear, but since the beginning of 2025 cement factories have already received export orders totaling 1.3 mn tons from Syria, Libya, and Iraq, a source at a production facility told EnterpriseAM.

Libya and Palestine were among the top five export destinations for Egyptian cement in 2024, ranking first and fifth, respectively. Cement exports to Libya grew more than 70% y-o-y to USD 150 mn from USD 87 mn, while exports to Palestine rose 57% y-o-y to USD 48.5 mn from USD 31 mn, according to the Export Council for Building Materials. African markets have also been major buyers, with Ivory Coast and Ghana ranking second and third, respectively, generating USD 132 mn and USD 123 mn in cement export revenues last year.

Israel recorded the biggest growth in imports: Egyptian cement exports to Israel skyrocketed by more than 16x in 2024, reaching USD 66.2 mn from just USD 3.8 mn in 2023, according to the Export Council for Building Materials.

INDUSTRY RECOVERY COULD CALL FOR A REGULATORY RETHINK-

Regulatory changes supporting demand: The Madbouly government recently announced measures to ease construction permit approvals, particularly for individual builders who represent a major segment of the market. This follows years of strict regulations and includes the reversal of the 2021 urban planning restrictions, with the country now reverting to the 2008 Building Law, according to Moustafa. The sum total of recent developments is rising gains for cement companies, which follow years of financial losses due to reduced production and lower utilization rates that eroded investment returns, he said.

Rising prices have bolstered industry sentiment: Factory-gate cement prices in Egypt started at EGP 3.2k per ton in 2025, having surged more than 270% since July 2021, Mahmoud Mukhaimar, head of the Alexandria Chamber of Commerce’s cement division, told EnterpriseAM. Cement factories helped bring about the price increase by leveraging a 2021 decision by the Egyptian Competition Authority allowing them to cut local production, with the restriction extended for a fourth year in October.

Despite their efficacy in the previous period, production restrictions may no longer make sense for the sector, Mokhaimer told us. He believes that the restrictions should be lifted in light of higher demand, in order to prevent further price increases and to protect consumers. Such a move would largely benefit domestic consumers of cement, since the production cap applies only to the domestic market and factories have more leeway to boost exports at the expense of local supply.

Indeed, a mismatch between supply and demand has been both pushing up prices and causing shortages. A cement distributor told EnterpriseAM that price hikes have often pushed cement beyond cost levels since the production cap was introduced in 2021. Prices rose to EGP 1.3k per ton in the first year of the cap, then jumped to EGP 2k in the second year, and EGP 3k in the third. At times, prices even exceeded EGP 3.3k per ton. In November 2024, cement prices temporarily reached EGP 5k per ton in some governorates, including Kafr El Sheikh, Alexandria, and Beheira, due to a construction boom in those areas. Factory supply delays have become increasingly common, with orders that previously took less than a day to be fulfilled now taking up to a week, fueling further price hikes, the distributor noted.

Further policy changes could boost the sector even more: Tax reductions or exemptions on cement exports would improve Egypt’s competitiveness in foreign markets, Moustafa noted, particularly after export subsidies were removed under the latest export subsidies program. Some commercial players, on the other hand, welcomed the removal of subsidies, noting that cement producers sell at a maximum of USD 50 per ton abroad, compared to EGP 3.5k per ton for domestic buyers.

Your top infrastructure stories for the week: Construction work on the 1.7k km road connecting Egypt, Libya, and Chad is underway, starting with the 400 km section within Egypt’s borders, according to a Transport Ministry statement. An MoU has been signed between Arab Contractors and the Libyan government for studies and initial designs of the 390 km Libyan section, as well as a similar agreement with Chad for the 930 km from Libya to Chad.

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CALENDAR

FEBRUARY

24-26 February (Monday-Wednesday): Sports Expo 2025, Egypt International Exhibition Center, Cairo.

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

MARCH

1-10 March (Saturday-Monday): Egypt will open electronic applications for 2.2k industrial land plots across 22 governorates

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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