More Gulf investments coming our way

Wednesday, 12 Nov 2025

More Gulf investments coming our way

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Today at a glance

Investment Watch

Kuwait to finalize agreement for first tranche of USD 3 bn investment package within weeks.

DEBT WATCH

Local sukuk issuance, take two.

What We're Tracking Today

Madbouly confirms upcoming visit from IMF mission.

Economy

Qatar’s USD 30 bn North Coast investment is boon for Egypt’s credit position -Moody’s.

Capital markets

Qalaa Holdings to unlock value through EGX listings, convertible bonds, and portfolio optimization.

Commodities

Egypt bans sugar imports for three months.

Manufacturing

More details on Alstom’s multi-mn-EUR Borg El Arab complex.

Also on our Radar

Cement player Titan to invest EGP 3 bn to boost capacity.

PLANET FINANCE

Millennials set to pour more money into private markets, and MidEast will be leading the charge.

HARDHAT

Wider adoption of fixed-schedule rail services could help Egypt achieve its rail freight targets.

What We're Tracking Today

Madbouly confirms visit from IMF mission within weeks

Good morning, friends. For the second morning this week we lead the news well with news of incoming Gulf investments, this time from Kuwait, with sources telling us that we can expect the country to finalize an agreement for the first tranche of its USD 3 bn investment package within weeks.

PSA-

WEATHER- Cairo is in for its coolest day yet this fall, with the capital looking at a high of 26°C and a low of 18°C, according to our favorite weather app.

It’s even cooler in Alexandria, which is in for a high of 27°C and a low of 16°C.

WATCH THIS SPACE-

#1- MADBOULY CONFIRMS- A mission from the International Monetary Fund will touch down in Cairo within weeks for the fifth and sixth reviews of our USD 8 bn Extended Fund Facility, Prime Minister Moustafa Madbouly said during his weekly presser (watch, runtime: 47:35).

You heard it here first: EnterpriseAM reported earlier this week that a mission from the Fund is expected to land in Cairo in the second half of November to discuss — and potentially greenlight — the combined reviews, following improvements in the key indicators the fund had been watching.

ALSO FROM THE PRESSER- Egypt aims to attract large-scale automotive factories with annual production capacities of at least 100k vehicles, Madbouly said during the presser. Building a strong local industry, he said, requires boosting domestic output across all vehicle types to over 500k units a year.

#2- The Egyptian Electricity Transmission Company has earmarked EGP 6.5 bn to upgrade the national electricity grid before next summer, a government source told EnterpriseAM. Under the plan, the state will add 5k km of power transmission lines and nine medium-voltage transformers to help process an additional 6.4 GW that will be added to the grid next year from renewables.

Egypt’s push to upgrade its grid isn’t just about increasing capacity. Traditional power grids, designed around centralized fossil‑fuel plants with steady output, are ill‑suited to manage the fluctuating, decentralized, and bidirectional flows created by rising shares of wind and solar. The upgrades planned by next summer aim to increase power supply, stabilize voltage, and accommodate the expected surge in demand in the summer, our source told us.

Some EGP 7 bn worth of transmission network upgrades were completed during the last fiscal year to accommodate the increasing renewable energy capacity.

#3- Chinese e-commerce giant Alibaba is in talks with the Unified Procurement Authority (UPA) to set up a regional logistics and e-commerce hub within the UPA's strategic warehouse facilities, according to a statement. The hub would allow Alibaba to expand its operations into African markets and its access to other global markets. The pair also discussed setting up a platform to facilitate e-commerce flows between MENA and the African continent.

#4- Egypt, China ink MoU to expand SCZone cooperation: The Suez Canal Economic Zone (SCZone) and China’s Commerce Ministry signed an MoU to deepen cooperation on developing the Chinese-operated TEDA industrial zone in Ain Sokhna, according to a statement. The agreement aims to expand collaboration on special economic zone development, encourage more Chinese firms to invest in Egypt, and strengthen industrial integration and supply chains.

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FROM THE DEBT MARKETS-

A successful USD t-bill auction: The Central Bank of Egypt auctioned off USD 1.55 bn worth of USD-denominated one-year treasury bills yesterday, slightly above the initially targeted USD 1.5 bn, according to the lender’s website. The bills were sold at an average yield of 3.75%, marking a 0.50 percentage point drop from the average yield on similar bills sold throughout the year.

HAPPENING TODAY-

#1- Foreign Minister Badr Abdelatty and his Turkish counterpart Hakan Fidan will meet in Ankara today to discuss the Gaza ceasefire and international reconstruction efforts once the conflict ends, a Turkish Foreign Ministry source told Reuters. The talks will focus on the next steps in the US-brokered truce and efforts to rebuild the enclave. The ministers will also hold the first meeting of the Turkey-Egypt Joint Planning Group in preparation for high-level talks in Cairo next year.

#2- The Global Congress on Population, Health, and Human Development kicks off today in the New Capital under the theme Empowering People, Advancing Progress, and Unlocking Opportunities. The event will run until 15 November and will bring together global leaders, policymakers, and health experts to discuss strategies for advancing sustainable development, equitable access to healthcare, and more.

The third of four weekly special issues about the GEM will land in your inbox later this morning, charting the museum’s journey from the launch of a record-breaking international design competition to the final stages of completion and capturing the challenges, milestones, and unwavering ambition that brought it to life.

Missed the first two issues of the series? Catch up here: (The backstory | Opening Night)

CIRCLE YOUR CALENDAR-

Housing Ministry to offer 25k units next week: Starting next Sunday, the Housing Ministry will begin offering 25k housing units under the second phase of its 400k-unit housing program via the Egyptian Real Estate Platform, according to a statement. Application details and brochures will be available on the platform starting today.

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

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

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THE BIG STORY ABROAD-

No one story dominated the front pages this morning, with headlines moving between AI bubble fears, a trouble-laden COP30 in Brazil, and the anticipated end to the US government shutdown.

SoftBank’s shares plunged 10% in early trading despite strong quarterly results, after the Japanese giant sold its entire stake in US chipmaker Nvidia for USD 5.8 bn. The sale comes amid mounting fears of inflated capital investments in AI that are yet to produce certain returns. Nvidia’s shares closed down 3% yesterday. (CNBC | Reuters | Financial Times)

ALSO- A controversial COP30 kicked off yesterday in Belém, known as the gateway to the Amazon. Brazil wants to draw the focus to rainforests, aiming to raise USD 125 bn for a global forest protection fund. However, a recent government approval of oil drilling at the mouth of the Amazon River, a severe lack of hotel rooms at the Brazilian city, and clashes with indigenous protestors who forced their way inside the venue have marred the summit with controversies and accusations of hypocrisy. (CNN | Reuters)

AND- The US House of Representatives is returning on Tuesday, to vote on a funding measure that is set to end the longest government shutdown in history. The reopening would put issues of healthcare affordability front and center, as both parties stand to gain (and lose) ground with voters ahead of midterm elections next November. (CNN | Reuters | New York Times)

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: EnterpriseAM’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a look to see if the wider adoption of fixed-schedule rail services could help Egypt achieve its rail freight targets.

Tags:

IMF What We're Tracking Today

The Opening of The Kaktus Hotel marks a new destination in Somabay, inspired by active lifestyle and culinary destination offerings. The Kaktus has finally bloomed on the Red Sea.

#Lovesomalivekaktus

Investment Watch

Kuwait to finalize agreement for first tranche of USD 3 bn Egyptian investment package within weeks

Kuwait is in discussions with the government to soon put into action a planned USD 3 bn investment package, two government sources told EnterpriseAM. Negotiations between both parties are ongoing, with the two sides expected to reach an agreement on the first tranche of the planned investment before the end of 2025 or in 1Q 2026.

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

The Gulf nation is interested in investing across multiple sectors – not just real estate development, which has dominated bit-ticket investment flows incoming from the GCC. Kuwait is taking an interest in our ports, logistics infrastructure, industry, and renewables, we were told.

It may also play a part in our airport privatization push, with officials from the country having expressed interest in the first offering currently being prepared in collaboration with the International Finance Corporation (IFC) and expected to be launched before the end of the year.

REMEMBER- The IFC unveiled a list of 11 Egyptian airports slated for development through public-private partnerships back in March. Hurghada International Airport will serve as a pilot project for the program. Civil Aviation Minister Sameh Elhefny earlier this year said that the government will launch the tender to select a strategic private partner for maintaining, operating, and upgrading the Hurghada International Airport next February.

The investments will be partly funded by converting deposits it holds in Egypt’s central bank, in addition to direct investments into industrial and banking assets, data centers, and various industries, our sources told us.

This has been in the works for a while: Kuwait has been in talks over turning the USD 4 bn of deposits it holds in Egypt’s central bank into direct investments across several sectors since October 2024.

Kuwait is also capitalizing on Egyptian debt: Earlier this year, Kuwait Finance House fully subscribed to Egypt’s USD 1 bn sovereign sukuk issuance.

Gulf investors ❤️ Egypt: The news of fresh Kuwaiti investments comes only days after Qatar inked an agreement to set up a USD 29.7 bn North Coast project, as part of a wider USD 7.5 bn direct investment package. Meanwhile, Saudi Arabia is planning to convert some of its USD 10.3 bn in deposits into investments.

REMEMBER- Egypt is working toward attracting USD 42 bn in net FDI this fiscal year, with plans to increase that figure to USD 55 bn in FY 2028-2029.

Tags:

Egypt-Kuwait relations FDI investment watch

DEBT WATCH

Egypt set to issue second tranche of maiden local sukuk within days

The Finance Ministry is set to issue the second EGP 3 bn tranche of Egypt’s first-ever local sukuk next Monday, a senior government official with knowledge of the matter told EnterpriseAM. The issuance settlement is scheduled for the following day.

(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 first tranche of our maiden local sukuk issuance was almost 5x oversubscribed, attracting an order book of EGP 14.9 bn earlier this month. The Finance Ministry received 63 offers from banks participating in the auction but only accepted 10, covering its EGP 3 bn target. The high demand brought yields down to 21.56% from 28% as a competitive pricing mechanism was employed, our sources told us at the time.

About the new issuance: The second tranche is a three-year ijara issuance — a leasing-based Islamic security — with a semi-annual return, and is linked to assets owned by the Finance Ministry, our source confirmed.

We now have an attractive yield precedent: The low yield on the first issuance “has set a good pricing structure to be relied on for the periodic issuance of shariah-compliant instruments,” according to the source.

The issuance is part of a wider sukuk program, which was recently quadrupled on the back of strong demand to EGP 200 bn for the fiscal year, a senior government source told us. The government originally planned to take EGP 25 bn worth of local sukuk to market this fiscal year, before doubling its target amid strong appetite.

The program is part of the Finance Ministry’s strategy to diversify its debt issuances in efforts to decrease the cost and burden associated with servicing the public debt, which consumes 80% of revenues and 50% of general expenditures.

Tags:

debt debt watch Finance Ministry

Economy

Qatar’s USD 30 bn North Coast investment is boon for Egypt’s credit position, but borrowing costs remain elevated -Moody’s

The USD 30 bn Qatari Alam El Roum project is good news for Egypt's credit outlook, but government borrowing costs remain elevated, Moody’s said in a research note seen by EnterpriseAM. The positive credit momentum from the agreement — which the Madbouly government signed with Qatar Investment Authority-owned Qatari Diar last week — is also complemented by other macro developments, including our narrowed current account deficit, higher tax collections, and record primary budget surplus in FY 2024-25.

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

The investment agreement also bolsters Egypt’s position as an attractive destination for GCC foreign direct investments, with more investments expected from Saudi Arabia and Kuwait in the coming years, according to Moody’s. These FDI inflows are expected to stabilize the exchange rate and improve investor confidence, which should, in turn, translate into lower and more sustainable inflation rates, the ratings agency said. The ultimate result would be reduced borrowing costs for the government and an improvement in overall debt affordability.

BUT- Debt servicing remains a key challenge: Despite recent developments throughout the past year with regard to inflation and interest rates, debt servicing costs are still elevated, the research note says. The yield on government T-bills dropped to 27% this month, compared to 31% in December 2024, indicating that the government’s borrowing rate did not cool at the same pace as inflation.

Egypt continues to have weak debt affordability, with Moody’s noting that “the country ranks among the top three sovereigns we rate with the highest interest payments to revenue ratio, which stood at more than 63% for the consolidated general government” in FY 2024-25. When accounting for interest expenses on T-bills and zero-coupon bonds, the ratio would come in above 95%, “implying that the government is spending nearly all of its revenue on debt service,” the note explains.

There’s upside in the outlook: As interest rates continue easing over the next few quarters, the interest-to-revenue ratio is expected to cool to 40% by 2030, excluding interest expense on T-bills and zero-coupon bonds. As government debt should mature within 1.6 years, interest bills should come down quickly.

Tags:

economy Qatar

Capital markets

Qalaa Holdings to unlock value through EGX listings, convertible bonds, and portfolio optimization

Qalaa makes good on its investor promises with IPO, funding, and asset-sale push: Qalaa Holdings is moving ahead with the growth and deleveraging strategy it outlined in its 1Q results, with the board approving plans to pursue five potential EGX listings, issue up to USD 200 mn in convertible bonds, and sell stakes in three subsidiaries, according to a bourse disclosure (pdf).

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

Delivering on earlier guidance: In its earnings release two weeks ago, Qalaa said it was preparing four IPOs for its subsidiaries over the next two years to “unlock shareholder value and enhance financial flexibility,” and pursue price discovery for its shares in these subsidiaries. That pipeline has now expanded to five, underscoring the group’s accelerating execution.

Who’s lining up for the float: Subsidiaries under review include Dina Farms for Food Industries (advised by EFG Hermes), National River Ports Management (advised by Zilla Capital), ASEC for Automation, and two undisclosed companies.

Debt and capital optimization: The planned USD 200 mn convertible bond issue aims to reduce debt, cut financing costs, and channel fresh capital into Qalaa’s high-growth platforms. The company will also consider selling two wholly owned subsidiaries and a minority stake in another while retaining control.

SOUND SMART- A convertible bond is a hybrid instrument that allows investors to exchange debt for equity at a preset price. For issuers, it offers cheaper financing in exchange for potential future dilution; for investors, it provides bond-like downside protection with equity-style upside.

In context: Qalaa reported EGP 37.2 bn in revenue in 1Q 2025, broadly stable y-o-y, with strong growth across ASEC, ASCOM, Taqa Arabia, and CCTO offsetting weaker refining margins at its ERC arm. Excluding ERC, the group delivered a 24% jump in revenue, proof of the underlying strength in its non-refining portfolio. The company is targeting a debt reduction of around EGP 30 bn this year, supported by ERC’s accelerated repayments — the refinery remains on track to fully repay its senior debt by early 2026.

Market reax: Qalaa’s stock price shed 0.7% to close at EGP 2.71 yesterday.

Tags:

capital markets EGX Qalaa Holdings

Commodities

Egypt bans sugar imports for three months

The Investment Ministry has decided to ban the import of refined sugar for commercial purposes for three months, except with prior import approvals for the required quantities, to be signed off by the investment and supply ministers, according to a decision seen by EnterpriseAM.

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

The decision comes amid a surge in local sugar production, which has driven prices down significantly due to market supply and demand dynamics and increased competition among domestic producers, a government source told EnterpriseAM. This has left little room for additional competition from imported sugar in the local market, the source added.

Producers have been struggling with oversupply, a sentiment sugar manufacturers expressed to the investment minister in a meeting that preceded the decision. Producers highlighted that the current oversupply, coupled with halted exports, has led to losses, the source said.

REMEMBER- It wasn’t long ago that we had thecomplete opposite problem, with many of us in 2023 and 2024 going without the sweet stuff in our morning cup of Joe as sugar became increasingly hard to find on supermarket shelves. At the time, insiders blamed unorganized distribution channels, a volatile pre-float exchange rate, and declining local production.

Sugar prices have fallen sharply in recent weeks, pushing down consumer prices but causing losses for manufacturers. The price per ton dropped to EGP 21-22k from around EGP 27-28k, while input costs have continued to rise — prompting calls to curb imports that threaten the competitiveness of local producers, member of the Chambers of Commerce's Food Division Hazem El Menoufy told EnterpriseAM.

The ban aims to support domestic production and encourage reliance on local output, which should help strengthen the economy and ease pressure on foreign currency, El Menoufy said. The decision is expected to help stabilize prices over the medium term, improve the competitiveness of local producers, and ensure steady market availability.

Tags:

commodities trade

Manufacturing

More details on Alstom’s multi-mn-EUR Borg El Arab complex

What’s the latest on Alstom’s Borg El Arab complex? French rolling stock company Alstom has upped the investment ticket for its Borg El Arab railway manufacturing complex to up to EUR 100 mn, Alstom Egypt Managing Director Ramy Salah Eldeen told EnterpriseAM on the sidelines of TransMEA yesterday.

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

REMEMBER- Alstom inked a land usufruct agreement with the General Authority for Land and Dry Ports for the project in April — a time when the project had a EUR 80 mn price tag.

About the complex: It will feature two factories — the first for manufacturing electrical and signaling systems for local projects and exports. Exports from the plant are expected to hit EUR 50-70 mn annually.

Production timeline: The first factory will go online by the end of 2026, while the metro car factory will go online mid-2026, Salah Eldeen said.

Freight wagons could be next in line: While the focus is currently on metro cars, Alstom is open to producing freight wagons once production at the new complex stabilizes, Salah Eldeen said. “We’ll study this step later once we’ve expanded our current output and the facility is ready to meet demand efficiently.”

A hub for smart rail exports to Africa: Alstom aims to turn the complex into a manufacturing and export base for smart rail systems in Africa, leveraging Egypt’s strategic location and industrial development to expand into regional markets, Salah Eldeen said.

Tags:

Alstom investment watch Manufacturing transport

DEBT WATCH

Arab African Bank’s leasing arm closed its first securitization, raising EGP 804 mn

Arab African International Leasing (AAIL) wrapped up its first securitized bond issuance, raising EGP 804 mn, according to a press release (pdf). Proceeds will go toward diversifying AAIL’s funding base and supporting expansion in the leasing market. The company first signaled plans for a securitization in 2022.

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

The three-tranche offering was 205% covered, reflecting a strong investor appetite. The issuance came in three tranches, with tenors ranging from 25 and 44 months and ratings ranging from AA+ to A from Middle East Ratings and Investor Services (Meris).

ADVISORS- CI Capital acted as the sole financial advisor, issuance manager, bookrunner, and lead arranger, while Baker Tilly served as the issuance's auditor. Barakat, Maher & Partners in association with Clyde & Co provided counsel.

IN OTHER DEBT NEWS-

Amer Group subsidiaries — Amer for Touristic Development and Tropi 2 for Touristic Development — closed an EGP 451 mn securitized bond issuance, as part of a three-year EGP 4 bn multi-issuance program, according to a press release (pdf). The three-tranche issuance received ratings ranging between AA+ and A- from Meris.

ADVISORS- Our friends at EFG Hermes acted as financial advisor, lead arranger, and underwriter for the transaction. Al Baraka Bank and CIB joined as underwriter, while CIB also served as custodian. Dreny & Partners provided counsel. Industrial Development Bank was the bookrunner, while KPMG acted as the auditor.

Tags:

debt debt watch securitization

EARNINGS WATCH

Madinet Masr, Rameda report 3Q earnings

It’s earnings season, and real estate developer Madinet Masr and local pharma player Rameda are both out with their 3Q earnings.

MADINET MASR SEES INCOME, REVENUES DIP IN 3Q-

Madinet Masr reported a net income of EGP 1.1 bn in 3Q 2025, down 30.9% y-o-y, according to its latest earnings release (pdf). Revenues came in at EGP 2.6 bn, down 12.5% y-o-y, due to a more normalized operating environment after a strong 2024.

Revenue performance in 3Q was shaped by a doubling in unit delivery revenues to EGP 682 mn, supported by a 149% jump in delivered units to 493, mainly across the company’s flagship Taj City and Sarai projects. New sales hit EGP 15.1 bn, up 27.5% y-o-y, driven by strong demand for higher-value inventory and new launches, including Talala in New Heliopolis.

On a 9M basis, Madinet Masr reported EGP 2.4 bn in net income, down 6.6% y-o-y. Meanwhile, revenues stayed almost flat compared to the year before, falling 1,0% to reach EGP 7.4 bn. The company’s unit delivery revenues doubled y-o-y to EGP 1.6 bn, while new sales rose 11.2% to EGP 36.3 bn. The company handed over 1k units, up 112% y-o-y due to faster construction progress.

What they said: “Looking ahead, we are moving forward with confidence in our expansion strategy, both geographically and across product offerings. Backed by a diversified portfolio and a focused team, Madinet Masr is well positioned to sustain performance and continue shaping the next chapter of urban development in Egypt and the wider region,” CEO Abdallah Sallam said.

RAMEDA’S BOTTOM LINE DIPS, REVENUES JUMP IN 3Q-

Rameda saw its net income fall 20.7% y-o-y in 3Q 2025 to EGP 96 mn, according to its latest earnings release (pdf). Revenues, however, surged 48.7% y-o-y to EGP 1.1 bn, supported by solid growth across all business lines and a sharp rebound in tender sales.

Driving revenues was a 390% y-o-y jump in tender sales to EGP 242 mn. Units sold increased 46% y-o-y to 20.6 mn, supported by a rebound in tenders and a 15% growth in exports. Meanwhile, private market volumes fell 7% due to temporary regulatory changes affecting injectable antibiotics, though excluding this impact, private sales volumes would have grown 19%. The average selling price per private unit rose from EGP 58 to EGP 75 after Rameda’s repricing.

On a 9M basis, Rameda’s net income grew 15.1% y-o-y to EGP 281 mn, and revenues jumped 66.1% y-o-y to EGP 3.0 bn. The growth was driven by a strong performance across all business lines. Private sales rose 53% y-o-y to EGP 2.2 bn, supported by portfolio repricing and full normalization of production. Tender revenues more than tripled to EGP 414 mn, and exports grew 22% to EGP 169 mn, underpinned by a recovery in demand and stronger regional shipments.

What they said:“The third quarter marked another period of solid execution for Rameda, as we delivered strong top-line growth and continued to expand our presence across all market segments. Tender sales reached record levels as the Unified Procurement Authority resumed regular purchasing activity, while private market revenues remained resilient, reflecting the lasting impact of the repricing measures implemented in late 2024 and the strength of our commercial platform,” CEO Amr Morsy said.

Tags:

earnings earnings watch Madinet Masr Rameda Pharma

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Also on our Radar

Cement player Titan to invest EGP 3 bn to boost capacity

MANUFACTURING-

#1- Cement producer Titan Egypt plans to invest EGP 3 bn through 2026 to expand its production capacity and use of alternative fuels, CEO Amr Reda told Al Borsa. The company plans to bring its total production capacity to 5.5 mn tons next year, up from the current 4.5 mn tons generated from its two plants in Beni Suef and Alexandria.

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

It’s also planning to increase its alternative fuel use to 70% of total consumption by 2030, up from a current 40%, to reduce costs and cut carbon emissions. It is also targeting 1 mn tons in exports by next year, nearly double last year’s 550k tons.

#2- Egyptian Steel plans to invest just short of EGP 2 bn starting next year to expand and modernize its steel production facilities, Abdel Fattah Siam, general manager of the company’s Alexandria plant, told Al Arabiya. The steelmaker will fund a part of the 18-month investment plan from its own capital, and the remainder through bank loans — possibly split evenly between both.

The company will build a new lime plant to support its steel production, upgrade existing production lines, and add machinery to older lines at its Port Said and Alexandria plants. It aims to bring its production capacity to 1.7 mn tons next year, up from 1.2 mn tons projected for this year, and raise exports from 7% to 30% of output by 2027, targeting Europe and Africa.

REGULATION WATCH-

FRA mandates digital data link for fund managers: The Financial Regulatory Authority (FRA) has issued a decision requiring all investment fund management companies to set up the technological infrastructure needed to electronically link their databases with the FRA’s central system, according to a statement from the regulator. Companies have a six-month window — starting 5 November — to comply with the new mandate, and once the integration is complete, it will allow investors to track real-time fund prices through the I Invest platform.

EXPANSION-

Concrete Plus wants to expand in Saudi Arabia: Local construction player Concrete Plus is eyeing three projects in Saudi Arabia worth SAR 700-800 mn, with execution timelines of up to three years, CEO Tarek Youssef told EnterpriseAM. The company is also on the lookout for potential investments in Libya and other African markets.

DEVELOPMENT FINANCE-

The UN Adaptation Fund is considering providing USD 8 mn in financing to Egypt to support sustainable development and climate adaptation projects, according to a report (pdf) issued by the fund. The projects — implemented through an Egyptian executing entity — are currently in the final stages of approval.

Tags:

ALSO ON OUR RADAR development finance Egyptian Steel Financial Regulatory Authority infrastructure Manufacturing sustainability UN

PLANET FINANCE

Millennials set to pour more money into private markets, and MidEast will be leading the charge

Millennials are expected to ramp up their investments in private markets over the coming years — and the Middle East is shaping up to be one of the biggest players in this shift, according to Barclays Private Bank’s Private Markets Annual Report. The report shows that 79% of wealthy investors plan to increase their allocations in private markets, with Millennials leading the charge. The generational transfer of wealth — estimated at USD 80 tn globally by 2048 — is already changing how capital is invested. Younger, more tech-savvy investors are looking for flexibility, transparency, and access to sectors that offer long-term growth and social impact.

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

The Middle East’s influence is growing: The Middle East and Asia are now among the fastest-growing regions for private market investments, thanks to rising entrepreneurial wealth and strong liquidity. In these regions, private investors already dedicate about a third of their portfolios to private markets.

Barclays’ survey of over 550 investors found that 91% see private markets as key to long-term capital growth and 89% for diversification. Nearly half of those who have not yet invested say they plan to start soon, signaling a growing appetite for alternative assets.

Private equity and real estate remain the most popular asset classes, with 75% investing in real estate and 73% in private equity. However, other areas like private debt, infrastructure, and secondary transactions are gaining traction as investors look to move beyond traditional funds.

The fundraising landscape is shifting: More than half of general partners (GPs) say fundraising has become more difficult due to tighter liquidity and increased selectivity among investors. Despite that, fund distributions have remained steady, and investor appetite for experienced managers continues to grow.

Access and education remain key barriers: Liquidity, high entry requirements, and complex structures continue to discourage new investors. Younger investors — especially Millennials — say access is one of their biggest challenges, while Baby Boomers cite lack of understanding. Around 70% of respondents rely on advisers for guidance, underlining the need for more education and transparency.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning, with the Hang Seng leading gains (up 1.3%) and the Kospi, Nikkei, and Shanghai Composite trailing behind.

EGX30	40,261	-0.4% (YTD: +35.4%)
USD (CBE)	Buy 47.15	Sell 47.28
USD (CIB)	Buy 47.19	Sell 47.29
Interest rates (CBE)	21.00% deposit	22.00% lending
Tadawul	11,270	+0.2% (YTD: -6.4%)
ADX	10,034	+0.1% (YTD: +6.5%)
DFM	6,072	+1.1% (YTD: +17.7%)
S&P 500	6,847	+0.2% (YTD: +16.4%)
FTSE 100	9,900	+1.2% (YTD: +21.1%)
Euro Stoxx 50	5,726	+1.1% (YTD: +17.0%)
Brent crude	USD 65.16	+1.7%
Natural gas (Nymex)	USD 4.53	-0.9%
Gold	USD 4,143	+0.7%
BTC	USD 103,080	-2.8% (YTD: +10.1%)
S&P Egypt Sovereign Bond Index	961.95	+0.3% (YTD: +23.7%)
S&P MENA Bond & Sukuk	151.78	-0.1% (YTD: +8.5%)
VIX (Volatility Index)	17.28	-1.8% (YTD: -0.4%)

THE CLOSING BELL-

The EGX30 fell 0.4% at yesterday’s close on turnover of EGP 6.3 bn (30.7% above the 90-day average). Regional investors were the sole net sellers. The index is up 35.4% YTD.

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HARDHAT

Wider adoption of fixed-schedule rail services could help Egypt achieve its rail freight targets

Egypt's ambition to modernize its logistics relies on shifting some freight capacity away from roads and onto its extensive, yet underutilized, railway network. The recent launch of a privately operated fixed rail freight service can serve as a blueprint for how to move more cargo on tracks, moving away from the current ad-hoc, customer-specific model towards predictable rail services.

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This shift is currently being led by the private sector: G3A, a company founded in 2023 after a merger involving Gharably Integrated Engineering Company and 3A International, secured a 15-year concession to operate all cargo rail services to support the government in achieving its rail freight targets, G3A’s Chief Operating Officer Noha Awad told EnterpriseAM.

Egypt’s first fixed-schedule rail freight service was launched by G3A and the regional multimodal logistics services provider Transmar in the summer, featuring two weekly trips at a total capacity of 200 TEUs. The service connects Al Robaiky Industrial City to Adabiya Port, where Transmar and its sister company, Transcargo International, have a well-established operational presence.

In perspective: Despite boasting over 10k km of tracks, the rail system currently handles only around 6% of the country's inland freight, leaving supply chains highly dependent on trucking via riskier and less reliable road networks. To address this gap, the government is plotting to boost rail freight capacity by some 63% to transport 13 million tons by 2030 — a significant surge from the reported 2024 figures, though sharply down from an initial 30 million ton target.

But G3A is hopeful they can go beyond these targets: When G3A took over the cargo sector from ENR, rail handled around 3 mn tons per year, Awad told us. Over a single year, the company was able to double this figure to 6 mn tons in 2024, and it is now targeting 12 mn tons of handled cargo by the end of 2025. “We expect the cargo we handle to be duplicated every year throughout the 15-contract,” she added.

Achieving this target does not rely solely on laying new tracks — it requires a shift in the customers’ mindset to view rail as more reliable and make the switch, Awad told EnterpriseAM. Historically, the governmental operator (ENR) had not promoted the cargo service, with its usage limited primarily to military services and the transit of empty containers between ports, Awad said. Unfamiliar with the service, customers are “worried that if they put their container on the train, it would arrive after a week, while trucks would arrive within six or seven hours,” she added.

Changing the mindset would also require a fundamental shift in the operational model from an ad-hoc system to reliable, fixed-schedule rail services, Transmar’s General Manager Ahmed Al Ahwal told EnterpriseAM. Historically, the traditional rail freight system has operated based on customers having to request and fill an entire train. A customer who only needs to move a few containers a week must either wait until they have enough cargo to fill a whole train or pay for the entire reserved capacity, including the costly empty return trip.

But a fixed-schedule service helps remove this major cost constraint. The financial commitment required to book an entire train, plus the necessity of coordinating that train’s return journey, meant that small-to-medium shippers historically avoided rail altogether, Al Ahwal explained. Fixed-schedule services eliminate the need to book an entire train, plus the necessity of coordinating that train’s return journey, he added.

Beyond reliability and fixed scheduling, the subsequent hikes of fuel prices in Egypt are also making rail freight a more affordable option, Awad told us. This is largely because trucking is more sensitive to fuel prices, rising by 15%-20% on average with every hike, she explained. This dynamic translates into inherent cost savings for rail, which now costs 20% to 30% less than trucking, Awad added.

International studies agree with Awad on this. Rail operations are generally less exposed to fluctuating global fuel prices because fuel accounts for approximately 15% of rail haulage costs — compared to roughly 30-40% of the cost base for road transport, according to a 2019 study (pdf) conducted by Menarail Transport Consultants (MTS) and commissioned by the World Bank and ENR.

REMEMBER- Rail services generally also offer concrete benefits that directly counter the challenges and unpredictability inherent in road transport. Rail can offer long-term contracts lasting a year or more, providing shippers with predictable costs, according to the 2019 MTS study. It can provide 24/7 operations, whereas truck movements can be constrained by local restrictions. It also allows for higher legal weight limits per container compared to road, which mitigates the risk of fines associated with overloaded trucks.

Sustainability is another benefit: “[Another] major reason to shift to rail is to have a more environmentally friendly method to move stuff, which has now become attractive for most international players,” Awad said.

While fixed-scheduling and fuel prices are key for the shift, training workers and proper management and investments in the sector’s infrastructure are equally important, Awad explained. So far, G3A has established four multimodal stations across Egypt in major industrial areas. The government is also ramping up its investments in the sector, with plans for developing four multimodal logistics corridors across the nation.

The government is also actively pursuing the localization of locomotives and wagon manufacturing, Al Ahwal told EnterpriseAM, adding that this governmental localization plan will be pivotal for the country’s rail freight targets, as it would eliminate the need to depend on imports to ramp up the sector’s handling capacity as more customers turn to it for shipping.

REFRESHER- French rolling stock company Alstom is jump-starting a railway manufacturing complex in Borg El Arab, with two EUR 80 mn plants. The National Egyptian Railway Industries Company (Neric) is also developing an industrial complex for railway manufacturing in the East Port Said industrial zone. The complex will feature two production lines — one for metro cars with 35-40% local components and another for railway cars with 65% local content — with output planned to serve both the domestic market and export to regional markets, particularly in Africa.

Your top infrastructure stories for the week:

A new shipyard coming to Safaga Port: The Transport Ministry and Arab Bridge Maritime signed an MoU to establish, operate, and later hand over a shipbuilding and repair yard at Safaga Port. (Statement)
Egypt is mulling plans to establish a logistics center for grain storage and distribution in East Port Said — part of the government’s plans to enhance strategic commodity infrastructure and secure food supplies by improving supply and distribution chains.
Egypt, KSA sign MoU to exchange expertise in road development: The Transport Ministry and Saudi Arabia’s Transport Ministry signed an MoU to exchange expertise in road design, research, and training. (Statement)

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CALENDAR

NOVEMBER

16-19 November (Sunday-Wednesday): Cairo ICT 2025, Egypt International Exhibition Center.

16-19 November (Sunday-Wednesday): The 12th edition of the Digital Payments and Financial Inclusion Exhibition and Forum (PAFIX 2025), Egypt International Exhibition Center.

20 November (Thursday): Monetary Policy Committee meeting.

21 November (Friday): Egypt’s Entrepreneur Awards

23-25 November (Sunday-Tuesday): NEBU Expo 2025 gold and jewelry exhibition, Egypt International Exhibitions Center, New Cairo.

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

November: The Conference on Early Recovery, Reconstruction, and Development in Gaza.

DECEMBER

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

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

8 December (Monday): Egypt-UK Investment Conference, Cairo.

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

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

December: Germany’s North Rhine-Westphala business delegation to land in Egypt.

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

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

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

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

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

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

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

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

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

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

2026

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

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

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

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

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

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

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

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

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

2027

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

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

EVENTS WITH NO SET DATE

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

2027: Egypt-EU Summit 2027

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

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

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