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Monday, 20 Jan 2025

What We're Tracking Today
Privatization
M&a Watch
A Message From Hsbc
Manufacturing
Last Night’s Talk Shows
Egypt In The News
Also On Our Radar
Planet Finance
Blackboard
Calendar

National Investment Bank to offload entire stake in Alamal Alsharif Plastics through direct EGX listing in 2Q 2025

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Today at a glance

1

Privatization

National Investment Bank to offload entire stake in Alamal Alsharif Plastics through direct EGX listing in 2Q 2025.
2

Manufacturing

Organi Group to launch region’s first chlorine pellet plant with USD 100 mn investment.
3

M&A WATCH

Social Impact Capital confirms its 88.7% stake in CIRA Education following EGP 3.4 bn transaction.
4

What We're Tracking Today

Chinese investment alliance eyes USD 1.5 bn textile freezone in Minya.
5

LAST NIGHT’S TALK SHOWS

Wall-to-wall coverage of the Gaza ceasefire lit up television screens across the country’s living rooms and cafes last night.
6

EGYPT IN THE NEWS

Egypt’s industrial sector is growing on the back of booming exports of energy-hungry and polluting commodities.
7

Also on our Radar

Budget supermarket chain Kazyon is set to fully acquire Minya’s Upper Egypt for Concentrates.
8

PLANET FINANCE

Mega M&As are set for a strong comeback this year, sparking shareholder concerns.
9

BLACKBOARD

What would the new Egyptian baccalaureate system look like?

Monday, 20 Jan 2025

What We're Tracking Today
Privatization
M&a Watch
A Message From Hsbc
Manufacturing
Last Night’s Talk Shows
Egypt In The News
Also On Our Radar
Planet Finance
Blackboard
Calendar
1

What We're Tracking Today

Chinese investment alliance eyes USD 1.5 bn textile freezone in Minya

Good morning, friends. While most of the global press are looking stateside as the world prepares for a second Trump presidency ahead of his inauguration later today, we here at EnterpriseAM are doing what we do best: taking a deep dive into local business, financial, and economic news.

PSA-

WEATHER- It’s another overcast day in Cairo today, with a high of 22°C and a low of 12°C, according to our favorite weather app.

Those hoping for a bit of sun up north in Alexandria also aren’t in luck, with overcast skies, a high of 21°C, and a low of 12°C forecast for the day.

It’s set to be another foggy morning in most parts of the country, so take care on the roads this morning, the Egyptian Meteorological Authority warned in a statement.

** 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.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at Egypt's non-oil export performance in 3Q 2024. Check out the story here.

WATCH THIS SPACE-

A USD 1.5 bn textile freezone in Minya? The General Authority for Investment and Freezones is looking into setting up a freezone in Minya that would house textile projects from a Chinese investment alliance that is eyeing USD 1.5 bn in initial investments, authority boss Hossam Heiba told Hapi Journal. Heiba added that the authority is mulling allocating 1 mn sqm for the project, down from the alliance’s ask of 2-3 mn sqm.

Chinese investor appetite for Egypt seems to already be emerging as a trend in 2025, with the just few weeks of the year bring news of an up to USD 10 bn — not a typo — phosphate fertilizer complex planned for Upper Egypt, a USD 60 mn textiles factory in Sadat City’s Industria Sadat zone, and a USD 135 mn auto factory expansion, to name but a few.

FROM THE DEBT MARKETS-

Yields on three- and nine-month t-bills fell for the fifth consecutive auction yesterday, with the average yield for the longer bills falling 0.62 percentage points and those for the shorter bills by 0.04 percentage points, according to data from the central bank. The two issuances raised a combined EGP 72.8 bn, with the bank surpassing its target for nine-month bills by over 50%, but missing its target for three-month bills by nearly the same amount.

HAPPENING TODAY-

#1 It’s day one of Davos: World leaders, banking sector titans, and global private sector players are in Switzerland this week for the World Economic Forum Annual Meeting being held from 20-24 January. This year the meeting is being held under the title Collaboration for the Intelligent Age and will focus on five main points — rebuilding trust, reimagining growth, investing in people, safeguarding the planet, and industries in the intelligent age.

Some of our own will be taking the stage: Planning and International Cooperation Minister Rania Al Mashat will be on stage tomorrow alongside Pakistani Finance Minister Muhammad Aurangzeb and others for a session titled Back into the Black: How to Ease the Debt Burden. Al Mashat will also join the governor of the Central Bank of Peru Julio Velarde and the board chairman of the Swiss National Bank for a session titled Inflation: Past, Present and Future on Thursday.

Also stay on the look out for: Finance Minister Ahmed Kouchouk, alongside the Kuwaiti and Saudi finance ministers, will touch on the region’s economic growth in a session on the Long View on MENA’s Growth scheduled for Wednesday. Investment Minister Hassan El Khatib will touch on “ what strategies are needed to ensure fair and sustainable practices in this new work landscape? ” in a session being held on Thursday.

#2- WiFi calling services are set to launch in Egypt today, with the new service to be officially unveiled in a National Telecommunications Regulatory Authority planned for later today, Al Ahram reports. The new service will enable mobile phone users to make high-quality voice calls over internet connections, rather than via mobile networks, and aims to fix coverage gaps in dense neighborhoods and high rises.

Remember: The service — originally slated to kick off in 2023 — was reportedly being tested by mobile operators in August, with sources saying at the time that the calls would have the same rate as regular calls per each network operator.

CIRCLE YOUR CALENDAR-

#1- Foreign Minister Badr Abdelatty is joining the British Egyptian Business Association for dinner on Thursday for a discussion centered around the challenges and opportunities of the Egypt-UK Association Agreement. The event will be held at the Nile Ritz Carlton.

#2- The Finance Ministry will launch an electronic tax system for clearing investors’ receivables and debts next month, Finance Minister Ahmed Kouchouk told members of the business community at the Alexandria Chamber of Commerce.

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

THE BIG STORY ABROAD-

It's a busy day around the world as international media outlets focus equally on day one of the Gaza ceasefire and Donald Trump’s inauguration this evening — two events that observers believe are not coincidental. The first day of the Gaza ceasefire saw the exchange of three Israelis held by Hamas for 90 Palestinians in Israeli prisons. This came amid joyous celebrations by Gazans and a remarkable reappearance of Qassam Brigades militants on the ground. (Reuters | Bloomberg | Financial Times | New York Times)

Trump’s immediate impact was also felt on TikTok, which returned to life in the United States hours after it was shut down. The Chinese app had stopped operating in the US early yesterday in compliance with a US Supreme Court ruling, before Trump announced that he would issue an executive order on Monday giving TikTok a “period of time” to reach an agreement with the new administration that would address US concerns about national security. The app restored the service in the US a few hours later and thanked the incoming president by name, adding that it will work with Trump “on a long-term solution that keeps TikTok in the United States.” TikTok CEO Shou Chew will reportedly attend Trump’s inauguration, which is scheduled to begin at 6:30pm Cairo time tonight. (Bloomberg | BBC | CBS)

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

In today’s issue: We dive into the proposed Egyptian baccalaureate system and what it would look like if implemented.

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Discover Somabay’s offerings at boot Düsseldorf 2025.

Somabay, the premier Red Sea holiday destination, and its partner ORCA Dive Club will showcase their exceptional diving and watersports experiences at boot Düsseldorf 2025. With vibrant coral reefs, pristine lagoons, and a collaboration with Duotone PRO-Center for kiteboarding and wing foiling, Somabay solidifies its status as a world-class hub for water enthusiasts. Don’t miss the chance to explore the unmatched beauty and offerings of this Red Sea gem.

2

Privatization

National Investment Bank to offload entire stake in Alamal Alsharif Plastics through direct EGX listing in 2Q 2025

Alamal Alsharif Plastics is expected to make its EGX debut through a direct listing in 2Q 2025, unnamed sources told Al Borsa. The listing will reportedly see the government-owned National Investment Bank divest its entire 29.5% stake in the part-state-owned plastics manufacturer.

Sound smart: Under the 300 shareholder rule, the EGX requires that companies who want to list need to have — you guessed it — 300 shareholders. In this case, Alamal Alsharif already has 300 shareholders, giving the company an alternative to having to enter the EGX via an IPO. Unlike an IPO, a direct listing also offers already existing shares in the company.

This could just be the first of several state-owned companies to exit the company, with the Madbouly government in April reportedly readying a complete exit from the company — 46.6% of which is owned through state-owned companies — with a preference to sell to a strategic investor in FX. Alongside the National Investment Bank is the National Bank of Egypt with 11.3%, United Bank with 5.3%, and the Suez Canal Bank with 0.5%.

The long-term privatization target was earmarked as a target for 2025 by Prime Minister Moutafa Madbouly in a recent presser laying out the state’s privatization plan for the year, without going into details.

Advisors: EFG Holding and Al Ahly Pharos are reportedly advising Alamal Alsharif on the listing and sale.

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3

M&A WATCH

Social Impact Capital confirms its 88.7% stake in CIRA Education following EGP 3.4 bn transaction

Social Impact Capital (SIC) will soon have increased its stake to from 51.2% to 88.7% in CIRA Education. The extra 37.5% stake will officially change hands once the MTO is settled, the Public Investment Fund-backed vehicle confirmed in a statement (pdf)

The EGP 3.4 bn transaction is being funded by a recent capital increase by SIC — the vehicle through which the founding El Kalla family holds its stake in the nation’s leading private-sector education company — which was subscribed to by the Public Investment Fund-owned Afaq Al Elm Investments Company with the agreement that the proceeds would go towards acquiring up to 100% of CIRA Education. Afaq Al Elm’s parent company, the Saudi Egyptian Investment Company (SEIC), is a wholly owned Public Investment Fund subsidiary set up in 2022 to invest in Egypt and its holdings here include sizable stakes in Mopco, Abu Qir Fertilizers, E-finance, and Alexandria Container and Cargo Handling.

Just over 96% of shares responded to Social Impact Capital, with soon-to-be previous shareholders agreeing to sell their stakes — in total amounting to 218.4 mn shares — for EGP 15.5 a share in a mandatory tender offer.

Contrary to SIC’s original plan, CIRA Education will remain on the EGX, with an amendment earlier this month by CIRA Education cancelling a clause that stipulates the voluntary delisting of CIRA’s shares within two years of the acquisition’s execution, This meant that the company subsequently lowered its purchase offer to buy up to an additional 38.78% of CIRA’s shares — approximately 226 mn shares by our math — in a move that would bring its holding in the company to up to around the 90% mark.

Further expanding outside Egypt seems to be the plan going forward, with yesterday’s statement reaffirming how the move is positioning the education services provider for regional expansion. “The collaboration will allow CIRA to forge pioneering partnerships with both local and global institutions to meet the region’s evolving educational needs,” the statement said.

What they said: “This transaction represents a bold leap toward realizing our ambition of reshaping education across the region, marking a pivotal milestone in CIRA’s journey. With the partnership of SIC and SEIC, we are poised to take our vision to the next level — supporting its aspiration to become a regional leader. This partnership reflects our shared goal to contribute to the future of education and empower the next generation. Together, we will continue to innovate, expand and deliver world-class education to students across the region,” said CIRA Education CEO Mohammed El Kalla.

Remember, the transaction was nearly two years in the making, a source with first-hand knowledge of events told us last year, but it took the float of the EGP this spring and CIRA’s clear ambition to become a regional player in education to bring it home. PIF is known to be exceptionally rigorous in its investment decision making process, employing top advisors to make certain that it invests only in companies with clear growth prospects that fit the fund’s mandate to grow Saudi and regional champions.

Advisors: Rothschild & Co is advising PIF, with Allen & Overy and our friends at Matouk Bassiouny doing legal duties. Our friends at EFG Hermes are advising El Kalla family, while White & Case is legal counsel.

Market reax: CIRA Education shares rose 6.8% to trade at EGP 16.51 by the end of trading yesterday on the first day back after Thursday’s deadline for shareholders to respond to the offer.

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4

A MESSAGE FROM HSBC

Opportunity is rarely a straight line. Our international network connects you to what’s next. Search HSBC Egypt

5

Manufacturing

Organi Group to launch region’s first chlorine pellet plant with USD 100 mn investment

Made-in-Egypt chlorine pellets should hit the market by the of this year, as Organi Group works towards a USD 100 mn factory that will mark the Middle East’s first facility producing the swimming pool cleaner when it starts operations in 2025, CEO Essam Organi told Asharq Business.

The project will cut down the country’s annual import bill for chlorine pellets by USD 200 mn, Organi added.

We’ve heard quite a bit about Organi Group’s investment plans as of late, with the head of the company announcing last week that it plans to invest USD 1 bn in the automotive and tourism sectors by 2030.

This isn’t the first time we’ve heard of an in-the-works chlorine pellet factory, with the state-owned Egyptian Chemical Industries (Kima) and Chemical Industries Holding Company partnering with Cadence Energy and Engineering Consultancy to establish a seemingly similar venture back in 2023.

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6

LAST NIGHT’S TALK SHOWS

Day one of the Gaza ceasefire dominated last night’s talk shows

Wall-to-wall coverage of the Gaza ceasefire lit up television screens across the country’s living rooms and cafes last night, with the nation’s hosts split between hope and apprehension of what’s to come.

"The people of Gaza breathed a sigh of relief today for the first time after 471 days of bombardment and displacement between the north, center, and south in search of shelter to protect them from death,” Lamees El Hadidi’s told those tuned into Kelma Akhira (watch, runtime: 4:56). Around “330 trucks carrying food and medical supplies have already entered through the Kerem Shalom and Al Auja crossings, including 20 fuel trucks,” El Hadidi noted.

“Gaza is now a landscape of ruins, but its people remain steadfast, determined to return to their destroyed homes,” El Hadidi continued.

“Resistance is not something that dies—it’s an idea,” El Hadidi said in response to footage that showed members of Hamas’ Al Qassam Brigades military wing quickly reasserting their presence on the streets amid welcoming crowds after a 15 month campaign to destroy them (watch, runtime: 0:53).. “As long as Palestinians are denied clear rights and a homeland, resistance will persist,” El Hadidi argued.

“The only so-called victory we can speak of is that, for now, Palestinians are unlikely to die tomorrow or the day after from Israeli shelling,” Amr Adib said on his show El Hekaya (watch, runtime: 25:58). He added that “the Israeli aggression on Gaza was nothing short of genocide. Every new American weapon was tested—American technology, Israeli brutality, and global silence combined. Palestinians are returning home now, not hoping to find their loved ones alive, but to locate their bodies.”

Adib also warned of the risk of civil war erupting between Hamas and the Palestinian Authority over control of the Gaza Strip and urged Arab nations to withhold financial aid for reconstruction until this political dispute is resolved.

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7

EGYPT IN THE NEWS

What’s the impact of an uptick in smokestack production?

Egypt’s industrial sector is growing on the back of booming exports of energy-hungry commodities — but it comes at a hefty cost. Reuters shines the spotlight on the country’s increasing exports of cement, fertilizers, and chemicals, which grew by 350% since 2019 on the back of incentives put forward by the government, which has identified them as “key drivers” of growth — and increased European demand.

The downside: Despite creating “valuable” private-sector jobs in Egypt, the boom in industrial output will have a considerable climate impact although the exact figure is unknown, in part due to limited available data.

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8

Also on our Radar

Budget supermarket chain Kazyon is set to fully acquire Minya’s Upper Egypt for Concentrates. PLUS: Tanmiya Capital Ventures + Vital Pharma, Bel Egypt, Pickalbatros, Bolt, Akh Gold, Erada Microfinance

M&As-

#1- Budget supermarket chain Kazyon is set to fully acquire Minya’s Upper Egypt forConcentrates — the company behind condiment, paste, sauce maker Giardano — pending approval from the Egyptian Competition Authority, unnamed sources told Al Borsa. The acquisition will be financed via a capital increase of an unspecified size, with EFG Holding advising on the transaction.

This isn’t Kazyon’s only expansion in the works, with the company — founded in 2014 by our friend Hassan Heikal, the former EFG Hermes CEO — planning to expand its portfolio to 5k stores across Egypt, Morocco, and Saudi Arabia within the next five years. This involves a USD 144 mn Morocco expansion over the next four years in addition to its entrance into through its 50% stake purchase in Saudi Arabia’s sole discount retailer Dukan in a SAR 250 mn (c. USD 66.7 mn) transaction.

#2- Tanmiya Capital Ventures is set to acquire a 21% stake in Vital Pharma in a transaction expected to close within the next two months, Tanmiya Managing Partner Mohamed Mahgoub told Al Borsa. The acquisition, which has already received approval from the Egyptian Competition Authority, will include a convertible loan provided by Tanmiya to Vital Pharma.

INVESTMENT-

Dairy products producer Bel Egypt is set to inject EUR 5 mn this year to add new production lines and upgrade its machinery, boosting production capacity by 12%, Regional Director Hani Aram said, Al Borsa reports. Bel’s new target is a considerable jump from the EGP 150 mn it was said to be targeting in October over a two-year period.

ENERGY-

The General Petroleum Company plans to drill 41 new oil and gas wells and repair or recomplete 39 others as part of its FY 2025-2026 investment budget, according to an Oil Ministry statement.

HOSPITALITY-

Pickalbatros Hotels & Resorts plans to add 2k hotel rooms to its local portfolio this year, which would increase the company’s total stock of rooms to 16k, CEO Kamel Abou Aly told Al Arabiya. Some 900 rooms will open their doors next month and the remaining 1.1k will go online before the end of the year, he said, adding that the rooms will be added to its hotels in Sharm El Sheikh, Makadi Bay, and Hurghada. Abou Aly previously mentioned plans to invest EGP 5 bn in the local market throughout 2025.

The hospitality player also plans to inaugurate two new hotels in Morocco in the coming months as it continues its expansion drive in the country.

TRANSPORT-

#1- Three European firms are eyeing the contract to manage and operate Egypt’s high-speed electric rail network, Al Mal reports, citing what it says are sources with knowledge of the matter. The companies — one Italian, one Spanish, and one French — put in their offers before the tender went live — the tender was set to launch later this month. The offers are being reviewed and the three firms are expected to submit their technical and financial offers before 2H 2025 and the selected firm will be announced late 2025 or early 2026.

We have an idea who the Italian company might be, as Italian state-owned Italian State Railways last month discussed submitting an offer to manage and operate the network with Transport Minister Kamel El Wazir. This came as the ministry awaits Deutsche Bahn’s — initially tapped for the role in 2022 — financial offer.

#2- Estonia-headquartered ride hailing app Bolt will invest EUR 15-20 mn in the local market over the coming three years as it works towards a nationwide expansion, country manager for Egypt and Saudi Arabia Haitham Mansour told Al Mal. Bolt launched in Cairo last March and plans to expand its services to Alexandria by the end of the year and to the rest of the country within three years. It also plans to expand its Cairo customer base of 700-800k to 2-3 mn by the end of the year.

MINING-

UK-based Akh Gold will invest some USD 5 mn in its Eastern Desert concession this year, the business development offer of the Naguib Sawiris-backed parent company In2Metals, Ahmed Khairy, told Hapi Journal. The investment will focus on completing exploration efforts, Khairy said, ruling out the possibility of acquiring any new mines in Egypt.

MSMEs-

The Micro, Small, and Medium Enterprises Development Agency has signed an EGP 60 mn contract with Erada Microfinance to provide technical and financial support to microenterprises, according to an agency statement. The agreement will finance 1.7k new and existing microfinance projects with a focus on production and agricultural projects and each project eligible for up to EGP 242k.

EDUCATION-

A campus for the UK’s Exeter University will be built in Ain Shams University’s international campus following an MoU signed by representatives of both institutions yesterday, according to a cabinet statement. The development falls under the government’s aims to internationalize education offerings.

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9

PLANET FINANCE

Mega M&As are set for a strong comeback this year, sparking shareholder concerns

Mega-M&As to make a strong comeback in 2025: Big ticket mergers and acquisitions are expected to pick up in 2025 on the back of lower interest rates, bullish equity markets, and relaxed antitrust regulations, Reuters reports.

By the numbers: M&A transactions worth USD 10 bn or more accounted for a fifth of total activity over the past five years, exceeding USD 656 bn in 2024. This is a modest increase compared to 2023, but still a considerable decline from over USD 1 tn recorded in 2019.

Monetary policy enables funding big M&As: The US Fed lowered interest rates by a full percentage point since September 2024. Central banks in the EU and around the world are also following suit, making debt-funding of M&A transactions easier due to lower borrowing costs.

Antitrust regulations seem to be relaxing, too: Andrew Ferguson, Trump’s pick for the Federal Trade Commission, called for ending the “war on mergers.” Meanwhile, the EU’s competition chief Teresa Ribera told the Financial Times last September that the bloc’s rules will “evolve” to help European companies scale up and face global competition.

But, poor performance is a concern for shareholders: Analysis of 60 big-ticket M&As since 2020 found that three-quarters of buyers underperformed their sector benchmarks in terms of annualized shareholder returns by 7 percentage points on average. Notable failures include the 2021 merger of Discovery and Warner Media, which saw annualized returns drop 30% since the last day before the merger.

Buyers in financial services and healthcare fared particularly badly, underperforming their sector benchmarks by 9 and 10 percentage points on average. Pfizer’s USD 43 bn Seagen acquisition and Royal Bank of Canada’s USD 10 bn purchase of HSBC Canada were among the flops, according to Reuters’ analysis.

MARKETS THIS MORNING-

Asian markets are up this morning ahead of Trump’s inauguration, as investors anticipate the new administration’s policies. Hang Seng (Hong Kong) rose 1.8%, while Japan’s Nikkei rose 1.2%, and Shanghai Composite rose 0.5%. Meanwhile, Wall Street futures are inching lower following a strong week for the S&P 500.

EGX30

29,729

+0.4% (YTD: -0.04%)

USD (CBE)

Buy 50.29

Sell 50.42

USD (CIB)

Buy 50.30

Sell 50.40

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,332

+0.6% (YTD: +2.5%)

ADX

9499

-0.1% (YTD: +0.9%)

DFM

5212

-0.5% (YTD: +1.0%)

S&P 500

5997

+1.0% (YTD: +2.0%)

FTSE 100

8505

+1.4% (YTD: +4.1%)

Euro Stoxx 50

5148

+0.8% (YTD: +5.2%)

Brent crude

USD 80.79

-0.6%

Natural gas (Nymex)

USD 3.95

-7.3%

Gold

USD 2748.70

-0.2%

BTC

USD 104,241.70

+0.3% (YTD: +10.5%)

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 3.5 bn (7.3% below the 90-day average). International investors were the sole net sellers. The index is down 0.04% YTD.

In the green: Elsewedy Electric (+5.1%), Heliopolis Housing (+3.6%), and Edita (+3.5%).

In the red: TMG Holding (-1.0%), Egyptian Kuwaiti Holding -USD (-1.0%), and Egyptian Kuwaiti Holding -EGP (-0.9%).

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

Published every Monday in EnterpriseAM.

Read Blackboard
10

BLACKBOARD

What would the new Egyptian baccalaureate system look like?

A deep dive into the new Egyptian baccalaureate system: The new year kicked off with the Education Ministry putting forward a proposal for the Egyptian baccalaureate system — its alternative to the Thanaweya Amma system — to be implemented starting next academic year. So, what can we expect from this new system?

The new system at a glance: The new system is modeled after international baccalaureate systems and introduces a new mechanism that allows students two re-takes to improve their grades after completing their primary exams. Education Minister Mohamed Abdel Latif described it as a modern alternative to the current Thenaweya Amma system, adopting standards similar to those of global education systems — the IGCSE, IB, and Cambridge-certified Nile Schools. According to him, the system aligns with international educational practices in many countries.

Less subjects: If passed and implemented, the new system will reduce the number of subjects students have to study — students will only study seven subjects over two years instead of the 32 subjects they have to study under the current system.

And more tracks: The new system will give students four tracks to choose from — medical sciences, engineering and computer science, business, and arts and literature — replacing the currently limited choice between the arts and sciences tracks. Despite the track chosen, students will have to study four core subjects — Arabic, Egyptian history, foreign language, and religious studies.

Setting up students for the job market: The government is working to ensure students develop the skills in demand in the job market and improve the quality of pre-university education, Higher Education Minister Ayman Ashour said.

As it stands: The new system has already gotten the preliminary approval from the cabinet and is currently being discussed among community members — experts and specialists in the field of education, former ministers, and university presidents.

Not everyone is onboard: Opinions are divided regarding the new system — supporters argue it reduces the academic pressure on students by dividing the workload over two years, offering more time for specialization, while critics believe it adds new financial burdens on families and increases reliance on private tutoring.

Others are unhappy with the frequent changes to the Thanaweya Amma system, including Ala Masouleety’s Ahmed Moussa. “It’s strange how the education system keeps changing all of a sudden,” he remarked. “Every three or four years, we’re changing the education system in Egypt. Is this normal?” he said.

Remember: The Education Ministry last year announced a new, revamped Thanaweya Ammasystem that aimed to compete with equivalent foreign certificates. The new system came into effect this academic year, reducing the number of subjects and putting a greater emphasis on critical thinking and analysis.

Why change it again? The proposed system addresses issues in the current system, such as the overwhelming number of subjects and the single-chance exam that heavily impacts students' futures, Abdel Latif said. The goal is to provide students with multiple options and prepare them for careers aligned with their passions.

Also among the changes: Religious subjects will be included in the overall grades, with the Islamic curricula being developed by Al Azhar and the Christian curricula being prepared by the Church.

What experts think: Former Education Minister Reda Hegazy praised the proposed system for reducing stress and easing pressure on students and families. Meanwhile, education expert Hassan Shahata told EnterpriseAM that the new system addresses longstanding issues in Egyptian education, prioritizing understanding over rote learning and familiarizing students with tech through the use of electronic exams. Additionally, the new tracks align with job market needs, ensuring students graduate with relevant skills.

Is it applicable? Shahata stressed that the system’s success depends on ensuring teachers and schools are well equipped to apply it. He also suggested condensing the system into one year to reduce the financial burden on families.

Clear mechanisms: The Education Ministry needs to announce the guidelines of exam re-entry so students can better prepare for their final years of school.

A point for delaying implementation: Hegazy and Shahata both recommended delaying implementation to allow time for better planning and curriculum development.

What does this mean for the foundation year system? The Egyptian baccalaureate system introducing exam re-takes allowing students to improve their grades if needed may make the newly-introduced foundation year system not needed. Efforts are being made to integrate the foundation year with the baccalaureate system, an Education Ministry source told us, explaining that students will have to choose between enrolling in a foundation year and receiving bonus points toward their overall scores and re-taking their finals to ensure better grades.

Parents are onboard: Most parents support the proposed system — a survey found that 76% of parents favored the baccalaureate system and 24% preferred the current Thanaweya Amma system.

What’s next? Following the community dialogue sessions, the proposal will go to the Ministerial Group for Human Development to be presented to the cabinet in its final form, Deputy Prime Minister Khaled Abdel Ghaffar said.

Your top education stories for the week:

  • The American University in Cairo’s School of Continuing Education will give aspiring tour guides the “essential skills needed to pursue their career as professional tour guides and learn how to represent Egypt’s rich cultural and historical heritage” under a partnership with the Grand Egypt Museum.
  • Negotiations are currently underway to open branches of Egyptian universitiesoverseas, with the efforts taking place within a push to internationalize the higher education sector in Egypt and education service exports. Higher Education Ministry spokesman Adel Abdel Ghaffar named Cairo University, Alexandria University, and Ain Shams University as among the universities that will hopefully soon sign agreements.
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CALENDAR

JANUARY

20-24 January (Monday-Friday): World Economic Forum Annual Meeting

23 January- 5 February (Thursday-Wednesday): Cairo International Book Fair, Egypt International Exhibitions Center, Cairo

23 January (Thursday): BEBA working dinner with Foreign Minister Badr Abdelatty, Cairo, Egypt.

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Health Ministry finalizes partnership with Gustave Roussy to operate Dar El Salam Hospital.

Building permit applications in Egypt's new cities will go online

Accor Group to open Sofitel Cairo Downtown Nile, the world’s largest Sofitel.

Egyptian National Railways to launch tender for Tanta-Mansoura-Damietta railway line upgrades

Food products will require food safety and validity certificates from the National Food Safety Authority (NFSA)

Bavarian delegation visit to Egypt

FEBRUARY

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

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

Subscription period for Your Home in Egypt initiative opens.

2 February: Energy Day Conference, Cairo, Egypt.

17-19 February (Monday-Wednesday): EGYPES Technical Conference, Egypt International Exhibition Center, Cairo, Egypt.

18-19 February (Saturday-Sunday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

20 February (Thursday): Monetary Policy Committee's first meeting.

MARCH

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

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

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

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

25 December 2025 (Thursday): Monetary Policy Committee’s eighth meeting.

December 2025: 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: 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: 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: 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

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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