No more electricity subsidies by the summer of ‘29?

Monday, 4 Aug 2025

No more electricity subsidies by the summer of ‘29?

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Today at a glance

Energy

Will electricity subsidies be a thing of the past by the summer of ‘29?

Coffee With

What foreign investors want from Egypt: “Growth, plain and simple.”

EGP Watch

EGP inches up again against the greenback.

Capital markets

EGX30 extends rally in July, closing up 4.1% for the month.

Investment Watch

Abou Hashima-controlled companies eye growth.

Diplomacy

Vietnam’s president is in Egypt looking for a foothold in Africa — and there’s plenty we can learn from him.

LAST NIGHT’S TALK SHOWS

Interior Ministry arrests at least three prominent TikTok influencers.

Also on our Radar

Gov’t allocates EGP 6 bn for first phase of Libya-Chad connection.

PLANET FINANCE

Big Tech and big banks drive US earnings in 2Q 2025, but others aren’t faring so well.

BLACKBOARD

Gov’t studies incentives to boost investment in tech-focused universities.

What We're Tracking Today

National Printing will start trading on the EGX tomorrow

Good morning, friends. We have an absolutely packed issue for you this morning, so let’s jump right in.

UP FIRST- Electricity subsidies could be a thing of the past by the summer of 2029 — at least for the state budget. Government officials have spoken with us in recent days about a plan that will see businesses and consumers that use lots of electricity cross-subsidizing lower-tier users. It would be a fundamental change in the structure of the economy if they can deliver: You can draw a reasonably straight line between ruinous energy subsidies and the six-year half-life of the EGP.

We also sat down for coffee with our friend Mostafa Gad, head of investment banking at EFG Hermes, for a look at what we can expect heading into the back half of the year. And Ahmed Abou Hashima is in the news again with plans for a distant IPO and appetite to invest up to USD 300 bn in renewable energy.

MEANWHILE- The EGP continues to inch up against the greenback — and the Interior Ministry says it has arrested at least three prominent TikTokers for public morals violations.

^^ We have all of this and more below and in this morning’s news well.

HAPPENING TODAY-

#1- Voters in Egypt head to the polls today and tomorrow for Senate elections. Results will be announced on 12 August, with successful candidates elected to serve a legislative term from 2025 until 2030.

#2- It’s day two of a state visit to Egypt by Vietnam’s president. We have the rundown in this morning’s news well on what’s on the agenda — and why there’s lots to learn from our (still very tiny) relationship with Vietnam if you care about FDI and exports.

#3- It’s also day two of the Egyptians Abroad Conference at the Triumph Hotel in New Cairo. The two-day Foreign Affairs Ministry-organized event will act as a “national platform for direct dialogue and the exchange of ideas and proposals with Egyptians living abroad.

What went down during day one? New programs to offer online classes to Egyptians abroad who want to study the national curriculum and to expand an ins. program to cover all expats, not just folks with jobs, while raising the policy’s payout ceiling to EGP 250k

What’s all the fuss? We want more remittances. Egyptians living abroad are an increasingly important part of the country’s economy after the drying up of Suez Canal revenues, with remittances being up for 15 consecutive months. The float of the EGP did away with the parallel market that drove remittances through informal channels. Money sent from abroad is expected to have made up around 8% of the country’s entire GDP in 2024, up from 5% in 2023 and 6.1% in 2022.

#4- Edugate is mid-way through its annual fair at the Royal Maxim Palace Kempinski Hotel in New Cairo. The three-day event that ends tomorrow features universities from Egypt and across the world, in addition to scholarship providers, education financing companies, training institutes, and more.

WEATHER- Cairo is in for another sunny day, with a high of 35°C and a low of 25°C, according to our favorite weather app.

It's a little cooler in Alexandria, with a high of 32°C and a low of 24°C.

HAPPENING TOMORROW-

#1- National Printing will start trading on the EGX following its successful IPO. National will open at EGP 21.25 per share with a 10% stake listed on the exchange in a transaction that raised c. EGP 449.9 mn. Half of the offering was placed with a Saudi investor in a private placement, with the balance going to institutional and retail investors in Egypt.

ADVISORS- Our friends at EFG Hermes Investment Banking quarterbacked the offering as sole global coordinator, while Zulficar and Partners served as legal counsel.

#2- PMI incoming. The business community and policy makers will be hoping non-oil private sector activity breaks its four-month streak in the red, with S&P Global set to release its Purchasing Managers Index report for July early tomorrow morning. Our last reading saw the country’s headline figure drop to 48.8 in June from 49.5 in May, taking us further below the 50.0 mark that separates growth from contraction.

But not everyone is that confident about the road ahead, as “overall expectations for future activity were the lowest ever recorded in June, with the respective index having hovered close to all-time lows in 2025 so far,” S&P Global Senior Economist David Owen said. This “downbeat sentiment reflects subdued hopes for order books, as well as concerns that geopolitical risks could cause greater economic disruption,” he added.

SETTING THE RECORD STRAIGHT-

The government did not increase gas prices for industry at the start of the month, a government source told EnterpriseAM in response to reports in the domestic press over the weekend that sparked concern in the manufacturing sector. Factories haven’t received any official notifications regarding any increase, Chamber of Building Materials Industries head Ahmed Abdel Hamid confirmed to EnterpriseAM.

The question isn’t if gas prices will rise, the question is when. With the country increasingly relying on expensive LNG imports to help fill the gap between local demand and supply, the country’s energy import bill is cranking up — and someone’s got to foot the bill. It’s only a matter of time before the government tries to get the private sector to share more of this financial burden; however, the government is yet to make a decision on the matter and is closely watching disinflation progress, our export push, and the strengthening of the EGP against the USD before making any move, the government source told us.

In the third issue of our Destination Sahel series, we’re taking a look at how Sahel could become a year-round destination, the architecture underpinning new developments, and the impact of coastal cities on our shores.

Look for Destination Sahel, Issue III, in your inbox this Wednesday, 6 August.

Missed the first two issues? Tap or click here to read the full series.

CIRCLE YOUR CALENDAR-

The Housing Ministry will launch the first batch of units for sale under the second phase of the Your Home in Egypt initiative in September of this year, according to a statement from the ministry. A second batch to secure housing under the initiative will follow in October, then a third one in November. The second phase of the initiative will include approximately 3k units — including residential, administrative, and commercial — across 19 projects in 12 cities.

REMEMBER- The first phase of the Your Home in Egypt initiative first went live in February of this year, providing Egyptians abroad the chance to purchase units priced 3-10% lower than market rates and offering payment plans extending up to 10 years. Transfers must be made in USD, and applicants are required to have a foreign bank account that has been active for at least six months.

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

DATA POINT-

The Housing Ministry’s Social Housing and Mortgage Finance Fund has helped provide EGP 88 bn in mortgage financing to low and middle-income households, according to a statement from the fund, citing head May Abdel Hamid. The Housing for all Egyptians initiative has provided housing to 650k Egyptians, she added.

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Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how the Federation of the Egyptian Industries is urging the Finance Ministry to swiftly activate the first phase of the new EGP 30 bn initiative to support companies in priority industrial sectors. Check out the story here.

THE BIG STORY ABROAD-

It’s a (very) calm morning in the international press, dominated by concerns over Trump’s erratic response to jobs data, and what comes next in the Gaza war.

Defending Trump: National Economic Council Director Kevin Hassett said the president’s firing of Bureau of Labor Statistics commissioner Erika McEntarfer is justified after the BLS made “extreme” downward revisions to job report data from May and June. Trump “wants his own people there” to make the data “more transparent and more reliable,” Hasset added.

Are revisions uncommon? US job data have been known to undergo revisions later, as some businesses do not file data before the reporting deadline, making the estimate more precise as time goes by.

OVER IN GAZA- The US and Israel appear to be shifting their approach towards an “all or nothing” agreement to end the war in Gaza, US envoy Steve Witkoff signaled in a meeting with families of Israeli captives on Friday. While Witkoff stopped short on providing more details, the shift could be motivated by mounting international pressure over the humanitarian situation in Gaza and calls for recognizing a Palestinian state.

Israel has been trying to secure a partial agreement for months, but Hamas insists on a comprehensive agreement that answers next-day questions, including governance in the enclave and the establishment of a Palestinian state. Arab states — along with the EU and 17 more countries — have called on the militant group last week to disarm and relinquish power to the Palestinian Authority “in the context of ending the war.”

*** 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 look at efforts by the Madbouly government to attract more investors to establish private technological universities.

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capital markets What We're Tracking Today

Whether you’re diving into turquoise waters, catching the golden hour from your terrace, or just letting time drift by — Somabay is summer, redefined. Your ultimate escape, every single time.

Energy

Egypt intends full-phase out of electricity subsidies by the summer of 2029

No more electricity subsidies by FY 2028-2029? The Madbouly government plans to gradually bring electricity subsidies down to zero by the fiscal year 2028-2029, a senior government official told EnterpriseAM yesterday.

It’s all about curbing public expenditures: While the big-ticket item in this year’s budget is debt service, successive cabinets have worked to curb the impact of energy subsidies that many in the private sector have called “ruinous” in the past. It’s not difficult to draw a direct line between energy subsidies and the six-year half-life of the EGP.

The aim here: Free up funds previously earmarked for petroleum and electricity subsidies and channel the money back into “targeted social programs,” the official said.

It’s about a “transformation of the whole [energy] sector,” a senior government official involved in the electricity industry tells us. The big change involves getting the cost of subsidies off the state’s tab and onto the shoulders of those who use the most electricity. It’s what the government is calling a “cross-subsidy mechanism” that will see heavy users of electricity effectively subsidizing low-intensity users.

BACKGROUND- The government's long-term vision, launched last year, includes incremental price increases over a five-year period, one of our sources said.

Could this help lure more investment into the electricity sector? Officials are optimistic that the phase-out of subsidies, alongside improved economic conditions, and a stronger exchange rate, will eventually attract new capital to the industry.

Energy subsidies are going to cost EGP 150 bn this year: The government plans to spend EGP 75 bn on electricity subsidies this fiscal year and another EGP 75 bn on petroleum subsidies. That’s a big shift in emphasis compared to last year, when it allocated EGP 154.5 bn to petroleum subsidies and only EGP 2.5 bn for electricity, according to Finance Ministry data (pdf).

Looking ahead: The IMF expects spending on electricity subsidies to drop to EGP 45 bn in FY 2026-2027, before gradually increasing to EGP 50 bn in the subsequent fiscal year, to EGP 56 bn in FY 2028-2029, and finally to EGP 63 bn in FY 2029-2030.

The electricity sector reached a no-subsidy point in FY 2020-2021, with the state budget support for subsidies entirely eliminated after years of gradual cuts, according to our source and data (pdf) from the Finance Ministry. That didn’t last long after global tension caused exchange rate instability and spiked petroleum and natural gas prices, our source said. This created new financial burdens, pushing the state to intervene to absorb this price shock.

Last fiscal year’s electricity price hikes brought in EGP 15-20 bn in revenues, the electricity sector source noted. However, he said that high inflation has prevented the government from raising electricity prices in July as scheduled, with the state looking to curb rising prices and alleviate financial and social burdens on citizens.

The government already is looking into postponing electricity price hikes until January 2026, a government source told us last week. This is one of three potential scenarios for electricity price increases — the other two are implementing the increases this month or postponing them until September. The Electricity Ministry raised electricity prices by 14-40% between August and September 2024.

THE OUTLOOK

Energy subsidies are projected to jump to EGP 180 bn in FY 2027-2028, and further climb to EGP 190 bn in FY 2028-2029, before dropping to EGP 166 bn in FY 2029-2030, the IMF recently said.

Beyond electricity, fuel price hikes are unlikely before late September/early October: No fuel increases are expected before the fuel pricing committee meets in late September or early October, another government source told us. A potential increase will hinge on the exchange rate, global oil prices, and demand. However, the source does not expect a significant increase, as not much remains to be recovered in terms of cost, especially if the exchange rate drops and global prices hold steady.

REMEMBER- The government hiked fuel prices at the pumps in April for the first time in 2025, raising fuel prices by 11.8-14.8%.

Prime Minister Moustafa Madbouly reiterated in March Egypt’s intention to have energy prices be at break-even by the end of the year. Despite ongoing efforts to reform its subsidy system, the government still spends EGP 366 mn per day and EGP 11 bn a month on fuel subsidies, according to the Oil Ministry.

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Coffee With

What foreign investors want from Egypt: “Growth, plain and simple.”

Understanding what’s driving regional capital markets — and what signals we should watch in the back half of the year: The Saudi IPO market made a strong showing in terms of volume and value in the first half of the year, the EGX is outperforming its regional peers year-to-date, and the UAE is holding steady despite regional volatility and weaker oil prices. Altogether, it’s been a strong year so far for regional capital markets.

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

We sat down with EFG Hermes’ head of investment banking, Mostafa Gad, to break down what’s behind the momentum, what foreign investors are looking for, and how to know we’re on the right track for greater depth in capital markets. Gad also walked us through some of the stepping stones that helped the region’s most active markets achieve success.

Edited excerpts from our conversation:

Gad believes equity capital market (ECM) activity in the region is part of a multi-year trend rather than just a 1H 2025 phenomenon. The current cycle, he says, has been running strong for the past three to four years, fueled by structural reforms across the region.

IN CONTEXT- Saudi Arabia’s main index is down 10.0% YTD, while Dubai’s benchmark rose 18.5%, and ADX is up 9.5%. EGX is up 15.2% YTD.

The fundamentals in the region are far stronger than many expect, according to Gad. The risk factor is the biggest misconception foreign investors have about the region. Gad says the perception is far worse than the reality. From afar, the region might seem unstable — but their confidence in the region rises quickly once they actually visit and engage with the market directly.

Despite a rocky geopolitical landscape, Gad is cautiously optimistic about the second half of the year. Even with global headwinds such as the Trump administration’s trade policies, Gad isn’t too concerned about the impact of these developments on regional markets. In fact, he expects geopolitical tensions to ease, rather than intensify, in the near term. Markets have shown resilience, and if that holds, 2H could shape up nicely. Looking ahead, the pipeline for IPOs in the second half is expected to surpass that of the first half.

EFG Hermes has a packed calendar for the remainder of the year. The firm is preparing several issuances in Saudi Arabia, the UAE, and Kuwait. On the equity side, they’ve already closed four transactions and aim to complete another three to five before year-end. M&A and DCM pipelines are also very active.

THE LOCAL STORY-

Why Egypt is still lagging on listings: Chalk it up to a lack of deep domestic institutional capital. Big IPOs typically require foreign participation, and that had been on pause due to FX uncertainty and repatriation concerns. The good news? FX backlogs have cleared, repatriation is working as it should, and sentiment is slowly turning a corner.

What foreign investors want from Egypt: “Growth, plain and simple.” To attract foreign interest, Egyptian companies need to show robust growth, particularly in an inflationary environment, he explained, adding that with interest rates above 20%, dividend yields alone won’t cut it. Why invest in a stock when you can get a 20% zero-risk return? Gad says foreign investors are now looking for high-growth businesses with strong fundamentals and the resilience to withstand currency shocks.

Why National Printing is one to watch: National Printing’s IPO — which EFG is quarterbacking — is a transaction Gad sees as a model for how to structure IPOs in Egypt today. The company benefits from strong sector dynamics and sound financials, but what really stands out is the structure of the offering. A cornerstone investor was brought in early to anchor the book, adding credibility and encouraging local participation.

Could Egypt see more listings this year? Possibly, but don’t hold your breath. It will likely take another 6-12 months before the EGX sees larger offerings again. Investor confidence is building, but it takes time to translate that into action.

ELSEWHERE IN THE REGION-

What’s holding back the IPO pipeline in the UAE compared to regional peers? Saudi Arabia simply has a larger and more developed private sector than the UAE, according to Gad. Even without the big government listings, there are more companies ready to go public in Saudi. The UAE’s private sector, while dynamic, is smaller, hence fewer IPO candidates.

Authorities in the UAE understood that to build a vibrant and liquid equity market, they needed to list successful state-owned enterprises. Landmark IPOs such as DEWA and Salik helped attract investor attention, injected liquidity, and laid the groundwork for increased private-sector participation down the line.

Diversification is a key driver of resilience on the DFM: The exchange has shown resilience in its YTD performance largely because the market has somewhat decoupled from oil prices, thanks to its diversified economic drivers, Gad said. People have historically seen a strong correlation between real estate and oil prices. But that relationship seems to have been tested again this year, and it’s not holding up the way it used to.

And in Saudi, ECMs now offer remarkable diversity, Gad said, explaining that investors can tap into a wide range of sectors, from energy and infrastructure to healthcare and consumer goods. Each company brings a different story, management style, and growth potential, making the market both deep and dynamic.

Now the results speak for themselves: The Saudi market has been averaging around 20 listings per year — figures that were virtually unheard of in the past, he said, explaining that many of these offerings have been substantial in size, reflecting growing investor confidence and interest.

Tadawul has had some muted debuts, mostly due to stretched valuations, Gad said, adding that a correction may actually be a healthy development. This correction is viewed positively as a breather that allows for a reset toward more normalized valuation multiples. It also helps in creating more sustainable market capitalizations for listed companies.

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capital markets Coffee With EFG Holding

EGP Watch

EGP gains more momentum against the greenback

The EGP inched up again against the greenback yesterday, shrugging off the USD’s attempts to regain ground last Wednesday and Thursday, a period marked by a noticeable slowdown in inflows. The USD was changing hands at EGP 48.60-48.70 at the National Bank of Egypt, EGP 48.62-48.72 at Banque Misr, and at EGP 48.59-48.69 at CIB by the end of yesterday’s trading.

USD-denominated inflows remain the key driver of the exchange rate stability, a senior banker told EnterpriseAM. You can thank two factors: continued foreign appetite for government debt and a substantial rise in tourism revenues.

Foreign investments in public debt saw a robust recovery, with holdings surpassing USD 38 bn at the end of June, according to our source — a comfortable return to form. Foreign holdings of Egyptian government paper stood at USD 41.3 bn at the end of December 2024, but took back-to-back hits: first as global markets reacted to Trump’s “liberation day” tariff offensive and then in a regional risk-off as Israel and the United States bombed Iran.

Still, investors in Egyptian debt are asking a lot: Bidders asked for yields of up to 31% at Thursday’s t-bill auction, according to CBE data. One banker we spoke with said the elevated bids have been “mainly driven by the exceptional global economic conditions.”

The Finance Ministry was having none of it: It accepted relatively few bids on Thursday

Every sustained EGP 1 decrease in the EGP-USD exchange rate could reduce our external debt by EGP 94 bn annually, a Finance Ministry official tells us. A stronger EGP is good for our external debt position — and the bns we’re spending this year on debt service. The ministry aims to reduce external public debt by USD 1-2 bn annually.

The EGP has been strengthening against the greenback for nearly two weeks now, driven by substantial USD-denominated inflows. These inflows coincided with the beginning of the new fiscal year, a decline in debt obligations, and rising tax revenues.

The rebound aligns closely with expectations at Goldman Sachs: The global investment bank recently predicted that the EGP spot rate should be supported by strong portfolio inflows and strong international reserves, giving us a buffer to handle turbulence.

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EGP watch exchange rate

Capital markets

EGX30 extends rally in July, closing up 4.1%

The benchmark EGX30 gained 4.1% in July, closing the month at 34.2k points after having notched a record high of 34.7k earlier in the month, according to bourse data (pdf). This puts the benchmark index ahead of the EGX33 Shariah index, which rose 1.7% last month, and behind the more volatile SME Tamayuz index, which jumped 22.4%. Total market cap rose 3.3% to EGP 1.4 tn.

The EGX30 is up 15.2% for the year to-date as of yesterday’s close.

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

Investors came out to play last month: Total value traded was up 20% m-o-m to EGP 1.7 tn in July, while volumes jumped 34% to 35.5 bn securities.

Local institutional investors were net buyers in listed stocks with a net purchase value of EGP 1.6 bn (excluding block trades), while regional and foreign institutional investors were net sellers. Local and foreign retail investors were net buyers, and regional retail investors were net sellers with net sales worth EGP 224 mn (excluding block trades).

Non-bank financial services shares were the most-traded equities by value in July (excluding block trades), logging EGP 20 bn in turnover. Real estate followed with EGP 17 bn, despite the sectoral index losing 2.5%. IT, media & communication services ranked third at EGP 8.6 bn.

Building materials shares grew the fastest in July, rising 15%. Other gainers included:

Contracting and construction engineering: +9%
Food, beverage, and tobacco: +6%

Shipping and transportation stocks brought up the rear, collectively closing down 6.7%.

IN CONTEXT- The rally in July was fueled by high liquidity, exchange rate stability, and expectations of further interest rate cuts later this year, Alpha Financial’s Managing Director Mohamed Hassan told EnterpriseAM. While the central bank left rates unchanged in its last meeting, markets are pricing in a potential 400 bps reduction as inflation continues to ease which has supported sentiment across equities, he said.

Private ins. funds have been a key liquidity driver in recent months, Hassan told us. Under new regulations from the Financial Regulatory Authority, ins. companies are required to invest at lea st 5% of their assets in equities this year, channeling an estimated EGP 20 bn into the EGX between June and next month, he said. This influx is expected to continue supporting trading volumes in the near term.

Ultimately, equities stand to gain the most: Amer Abdelkader, the head of Pioneer Securities’ brokerage division, added that local institutions have anchored the market over the past three years, offsetting foreign and regional selling. While debt instruments have attracted foreign flows, he expects equities to ultimately benefit the most, with industrial and housing-related stocks likely to outperform in the months ahead, despite possible short-term slowdowns.

On the index outlook, Hassan noted that the 34k-point level remains a critical resistance, with the market likely to trade sideways temporarily to consolidate liquidity. “Once fresh inflows materialize and new investors enter, the EGX30 could break through 34.5k and target 36k,” he said.

How the EGX fared against regional and global benchmarks:

DFM: +7.9%
ADX: +4.1%
Tadawul: -2.2% (one of its worst months this year)
S&P 500: +2.2%
FTSE: +4.2%
Euro Stoxx: +0.3%

EFG Hermes’ brokerage arms led the EGX brokerage league table (pdf)in July with a combined 13.4% market share, followed by Thndr (8.7%), Mubasher (8.1%), and CI Capital (8.0%).

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capital markets EGX

Investment Watch

Abou Hashima-controlled companies eye IPO + USD 300 mn renewables investment

Abou Hashima-controlled companies are looking to grow: Egyptian Industrial Investment Group is looking to set up a major renewables project and MAFI Agricultural Produce Industries wants to either IPO or sell a stake to a strategic investor by 2030, Chairman Ahmed Abou Hashima told Asharq Business (watch, runtime: 23:04).

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

#1- The Egyptian Industrial Investment Group plans to set up a USD 250–300 mn renewable energy project in the coming weeks. The large-scale project will be developed in partnership with international players, Abou Hashima said, without disclosing any specific details — including project structure, location, and timeline.

REMEMBER- The project aligns with Egypt’s national energy strategy, which targets EGP 100 bn in private-sector renewable investments over the next two years. The government aims to generate 42% of its energy from renewable sources by 2030.

#2- MAFI Agricultural Produce Industries is considering either an IPO or a stake sale to a strategic investor by 2030, Abou Hashima said. The company’s founder also announced that its USD 300 mn agri-food industrial complex in Sadat City is expected to begin operations in 1Q 2026, launching at 60% of its annual production capacity of 100k tons.

The complex will be fully USD-funded by foreign investors, including First Abu Dhabi Bank, which is expected to play a key role in the second phase of the project, Abou Hashima said.

Funding update: The funding structure has shifted since January 2025, when Beltone Investment Banking, acting as sole financial advisor and lead coordinator, secured a total of USD 180 mn for the project. This included USD 108 mn in long-term financing from a syndicate of local banks led by Banque Misr — alongside Suez Canal Bank and Al Baraka Bank — and USD 72 mn in equity from regional investors.

Looking ahead: MAFI is conducting feasibility studies in multiple African countries with the aim of replicating the agri-industrial model in markets rich in water and agricultural resources.

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investment watch renewables

Diplomacy

Vietnam’s president is in Egypt looking for a foothold in Africa — there’s plenty Cairo can learn from Hanoi

It’s day two of Vietnamese President Luong Cuong’s state visit to Egypt — the first by a Vietnamese head of state since we upgraded ties to a strategic partnership in 2018. Cuong and President Abdel Fattah El Sisi aim to boost cooperation on trade, investment, education, and green energy, according to a statement from Vietnam’s Foreign Ministry.

On the agenda: Expect a heavy focus on economic ties now that Vietnam has been hit by a 20% US tariff. Vietnam has made deepening its relationships in Africa and the Middle East a foreign policy priority, according to Deputy Foreign Minister Nguyen Minh Hang. Nguyen told Vietnam News that working together in both countries on green infrastructure and food production is high on the priority list, alongside agriculture, education, and healthcare.

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

There’s lots of room to grow trade and investment with Vietnam — the base is low. There’s one Vietnamese investor in Egypt right now, according to a state-owned Vietnamese media outlet, with investments of about USD 30 mn. Our total investment in Vietnam is about a tenth of that. Cuong is heading to Angola after his stop in Egypt, state-owned Voice of Vietnam reports. Two-way trade hit USD 540 mn last year, almost all of it Vietnamese sales to Egypt, Vietnamese state media quoted Ambassador Nguyen Huy Dung as saying.

IN CONTEXT- There’s a lot we can learn from Vietnam when it comes to exports and FDI. The country, while still under communist rule, has shown what’s possible when policymakers commit to a clear industrial policy. Over the past two decades, Vietnam has built a tightly woven network of single-industry economic clusters that have unlocked substantial FDI inflows.

Annual FDI inflows into Vietnam rose from c. USD 15.8 bn in 2016 to USD 38.2 bn by2024. These clusters — located across the country and linked by solid infrastructure — helped Vietnam become a critical node in global supply chains.

SOUND SMART- Nearly 45% of all Samsung smartphones worldwide are made there. Intel runs one of its largest chip testing facilities in Ho Chi Minh City (not that Intel is necessarily long for this world, but … still…). Foxconn, BYD, LG, and Panasonic assemble everything from iPads to TVs and optical sensors in Vietnamese industrial parks. Apple buys from dozens of suppliers there and wants to invest more, CEO Tim Cook has said.

Capturing a piece of global supply chains can change economic destinies, our friend Simon Kitchen, now partner and head of macro strategy at Emerging & Frontier Capital, told us a few years back. His example at the time? Vietnam. “Look at the experience in Vietnam, where they have created single-industry economic zones,” he said. “You see people in low-income jobs suddenly having opportunities to get their heads above water. They save and have disposable income. They invest in education — their own and that of their kids. They buy consumer goods and start to participate in the formal financial system. Then service businesses build up around the zones to serve this emerging middle class. The multiplier is formidable. When you’re a nation of more than 100 mn people, it’s not about the 10k jobs in a given subsector — it’s about the multiplier effect. You want clusters close to centers of population so they can create [chances] for marginally employed people and kick off this virtuous cycle.”

Background: Cuong’s visit comes a little more than three months after a Vietnamese business delegation traveled to Cairo for talks with local exporters and officials in the Sisi administration.

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DIPLOMACY Vietnam

LAST NIGHT’S TALK SHOWS

Egypt’s interior Ministry arrests prominent TikTok influencers, citing “immoral” content

Interior Ministry cracks down on “immoral” TikTok content: The Interior Ministry’s campaign against TikTok content creators over videos deemed socially and morally offensive dominated talk show coverage last night.

Hosts (the vast majority of them on state-owned or government-affiliated broadcasters) claimed widespread public support for the crackdown, which they said came after complaints from the public. Among those confirmed arrested are ‘big name’ influencers including Suzy Elordonia (it’s at least her second arrest), Shaker Mahthor, and Modahem. Youtuber Mohamed Abdelati has also been arrested, according to Al Masry Al Youm. EIPR, the prominent rights group, says at least seven people have been arrested.

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

Representative comment: Ala Masouleety’s Ahmed Moussa (watch, runtime: 5:13) praised the decision, saying those arrested were “spreading vulgar content that undermines social values and has no place in Egyptian homes.” He urged the ministry to continue its campaign.

Cheers from an MP: In a phone-in with Moussa, MP Ahmed Badawi said (watch, runtime:17:42) the arrests have been met with widespread praise from Egyptian social media users. He added that the Supreme Media Council has also called on all social media platforms to appoint a legal representative in Egypt.

REMEMBER- The social media platform has been given a three-month deadline to align its content moderation policies with Egypt’s social and moral standards — or risk a parliamentary move to ban the platform.

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Egypt allocates EGP 6 bn for first phase of Libya-Chad connection

INFRASTRUCTURE-

Gov’t earmarks EGP 6 bn for land link with Libya, Chad: The Madbouly government has allocated EGP 6 bn for the first phase of a road project linking Egypt to Libya and Chad, Asharq Business reports, citing a government official. Construction is set to begin in 3Q 2025 and take three years at an investment cost of EGP 24 bn.

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The details: The road — also known as the East Oweinat-Kufra road — will stretch 1.7k km across the three countries: 400 km in Egypt, 390 km in Libya, and 930 km in Chad. The project aims to open a new land corridor to boost trade within African nations

DEBT-

Mountain View secures EGP 6.2 bn loan: Real estate developer Mountain View inked a EGP 6.2 bn loan agreement with a syndicate of six banks led by Banque Misr, according to a statement (pdf). The 7-year loan will help the developer fund a key project in East Cairo, with a total value of EGP 14.4 bn. The financing was backed by QNB Alahli, Industrial Development Bank, United Bank, EG Bank, and Al Baraka Bank.

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ALSO ON OUR RADAR debt infrastructure logistics

PLANET FINANCE

Big Tech and big banks drive US earnings in 2Q 2025, but others aren’t faring so well

The US economy is showing signs of a growing gap, with major tech firms and big banks thriving while many other businesses are struggling with higher costs and new tariffs, the Fin ancial Times reports. Second quarter earnings from companies like Apple, Meta, Microsoft, JP Morgan, and Goldman Sachs have exceeded expectations, reinforcing President Trump’s assertion that the American economy is booming, but that can’t be said for all companies. These companies, especially those in tech and finance, are driving a disproportionate share of S&P 500 earnings, as the top ten stocks now account for one-third of total earnings — with tech leading the way with 41% y-o-y earnings growth and finance following with a 12.8% y-o-y increase.

Tech giants, including Microsoft and Meta, both beat expectations, with profits up 25% and 36%, respectively, due in part to strong spending on artificial intelligence. “It’s been another solid earnings season, with bulls focused on their growing artificial intelligence capex spending,” AlphaCore’s David Stubbs said.

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But, the rest of corporate America is telling a different story. Many companies in the consumer staples and materials sectors are seeing declines, with earnings down y-o-y. Over half of S&P 500 firms that have reported 2Q earnings so far have seen their margins shrink. While sales are rising, increased costs — partly due to tariffs — are affecting earnings as many firms have not yet passed those costs on to consumers.

The effects of Trump’s tariff policy are becoming more visible, especially in sectors tied to manufacturing and consumer durables. Automakers, airlines, and home appliance producers reported some of the steepest downward revisions to their full year net income guidance. Ford, for example, posted a surprise loss partly due to a USD 800 mn tariff-related expense. Meanwhile, companies missing earnings expectations saw their share prices drop an average of 5.6% in the four days around their earnings announcements, which is more than double the five-year average.

The economic data is also showing signs of a slowing momentum. Job growth slowed significantly, with only 106k jobs added between May and July, compared to 380k in the previous three months. GDP grew at an annualized rate of 1.1% in 1H 2025, down from 2.9% in 2H 2024. Despite this, the Federal Reserve held rates steady last week at 4.25-4.5%, resisting Trump’s pressure for cuts amid what he claims is an economy resilient to his trade war.

MARKETS THIS MORNING-

Asian markets are mostly in the green in early trading this morning with South Korea’s Kospi leading gains, rising 0.5%. Hong Kong’s Hang Seng and the Shanghai Composite are looking at more moderate gains of 0.2%, meanwhile Japan’s Nikkei is down 1.9%.

EGX30	34,272	+0.2% (YTD: +15.2%)
USD (CBE)	Buy 48.58	Sell 48.71
USD (CIB)	Buy 48.59	Sell 48.69
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	10,833	-0.8% (YTD: -10.0%)
ADX	10,317	-0.5% (YTD: +9.5%)
DFM	6,112	-0.8% (YTD: +18.5%)
S&P 500	6,238	-1.6% (YTD: +6.1%)
FTSE 100	9,069	-0.7% (YTD: +11.0%)
Euro Stoxx 50	5,166	-2.9% (YTD: +5.5%)
Brent crude	USD 69.25	-0.6%
Natural gas (Nymex)	USD 3.05	-1.1%
Gold	USD 3,410	+0.3%
BTC	USD 114,262	+1.2% (YTD: +22.0%)
S&P Egypt Sovereign Bond Index	883.79	+0.1% (YTD: +13.7%)
S&P MENA Bond & Sukuk	147.17	+0.2% (YTD: +5.2%)
VIX (Volatility Index)	20.38	+21.9% (YTD: +17.5%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 3.4 bn (33.7% below the 90-day average). Local investors were the sole net buyers. The index is up 15.2% YTD.

In the green: Misr Cement Qena (+6.2%), Mopco (+4.6%), and Eastern Company (+3.2%).

In the red: Beltone Holding (-3.3%), Egypt Aluminum (-1.8%), and Palm Hills (-1.7%).

CORPORATE ACTIONS-

The Financial Regulatory Authority greenlit Emaar Misr’s request to amend its business activities to include importation and real estate development and remove real estate marketing from its scope of operations, according to a disclosure (pdf) to the EGX.

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Financial Markets Planet Finance S&P 500 US Federal Reserve

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

Published every Monday in EnterpriseAM.

Read Blackboard

BLACKBOARD

Egypt studies incentives package to boost investment in tech-focused universities

A package of incentives is currently being studied to attract more investors to establish private technological universities, Technological Education Council head Ahmed El Gioshy told EnterpriseAM. Egypt currently has 12 technological universities and has given approval to establish five new local tech-focused universities and two international universities, El Gioshy said.

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What kind of incentives? The incentive package for the private sector will likely include land partnerships, tax incentives, golden licenses, and investment facilities, El Gioshy said. This initiative will require legislative amendments to the law governing the establishment of technological universities, in order to include provisions for these incentives.

The Supreme Council of Universities has in principle approved the establishment of five new technological universities branching from existing public universities. These include Banha Technological University, Menoufia Technological University, Sohag Technological University, Suez Technological University, and Arish Technological University, we were told.

Technological education is vital to support labor market needs due to significant developments in industry and technology and their importance to the country’s economy, El Gioshy said. “Therefore, we have a plan to expand the number of new technological universities, link them with industrial zones, and form local and international partnerships with specialized universities and various industrial zones as part of a plan to expand this type of education,” El Gioshy said.

Enrolment in technological education has grown recently, El Gioshy said. The country now has 30k students in existing tech universities, compared to 15k last year, and the council is working on a plan to attract more students to this field, he explained.

And there’s real interest and movement from investors, according to El Gioshy. The government has already received three offers to open private tech universities, in addition to Elsewedy University of Technology and Saxony Egypt University (SEU). The state's plan includes establishing a technological university in every governorate in Egypt, in addition to establishing private tech universities.

The offers are being examined to see whether the new universities will have an industrial partner, which is a condition for approval to ensure universities serve nearby industries, the El Gioshy said.

Currently, land availability is one of the biggest obstacles to university expansion, El Gioshy explained. However, this challenge is being addressed by strategically locating new institutions near industrial zones. Several ministries have proposed leveraging their own assets through partnerships to establish private technological universities, which would generate returns for those entities, El Gioshy added. For example, state-affiliated players in the cotton industry in Mahalla and Kafr El Zayat have offered to utilize their land to develop new universities in collaboration with investors or development partners — without placing a burden on the state budget.

Government entities are studying career prospects for technological university graduates, El Gioshy said. This includes efforts by the Central Agency for Organization and Administration to develop a structured plan for career paths and salary grades tailored to these graduates. The plan also involves organizing recruitment competitions to attract more talent to this emerging career path.

The curricula for technological colleges were designed based on needs in specific specializations. This was done by collaborating with several ministries to determine the needs of the job market and the industrial sector. Reports from the International Organization for Migration on job opportunities in various countries and the global demand for skilled labor were also reviewed, along with international forecasts for future labor market needs. Additionally, efforts to integrate technological education with pre-university education were examined.

Partnerships will continue between local and technological universities as well as prestigious academic institutions to exchange expertise, skills, and enhance cooperation in areas of mutual interest, El Gioshy said, adding that the sector will see development through significant international support from German and Italian entities.

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Blackboard Education education technology investment watch

CALENDAR

AUGUST

3-4 August (Sunday-Monday): Egyptians Abroad Conference, Triumph Hotel in New Cairo.

3-5 August (Sunday-Tuesday): Edugate Cairo, Royal Maxim Palace Kempinski Hotel in New Cairo.

5 August (Tuesday): S&P Global to release its July Purchasing Managers Index (PMI) report for Egypt.

6 August (Wednesday): Egugate Alexandria, Hilton Green Plaza Hotel in Alexandria.

7 August (Thursday): Finance Ministry to begin disbursement of 50% of exporters’ pre-June 2024 dues over a four-year plan.

8 August (Friday): Capmas expected to release inflation data for July.

12 August (Tuesday): Egyptian Tax Authority deadline for pre-2020 tax dispute settlement requests.

12 August (Tuesday): Capmas expected to release unemployment data for 2Q 2025.

28 August (Thursday): Monetary Policy Committee meeting.

Mid-August: Launch of electronic platform to register Old Rent Law tenants.

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

Late-August: Deadline for cement factories to restart production.

SEPTEMBER

8-11 September (Monday-Thursday): EFG Hermes London Conference takes place in the British capital.

9-11 September (Tuesday-Thursday): The International Exhibition for Paper, Corrugated Board, Paperboard and Tissue Paper Industries — PAPER-ME — takes place at the Egypt International Exhibition Center.

15 September (Monday): IMF to hold its combined fifth and sixth reviews of Egypt’s USD 8 bn EFF arrangement.

24-27 September (Wednesday-Saturday): Cityscape Egypt 2025, Egypt International Exhibition Center.

The Egyptian-Moroccan Business Council to send a delegation of 23 local companies to Rabat.

The Engineering Export Council of Egypt will ship a commercial delegation to Russia to ramp up exports to European markets.

Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay.

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

OCTOBER

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

7 October (Tuesday): The 2025 EnterpriseAM Egypt Forum.

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

23-25 October (Thursday-Saturday): Stone Africa Expo, Cairo International Conference Center.

October: The third iteration of the Export Smart Exhibition and Conference.

NOVEMBER

16-19 November: Cairo ICT 2025, Egypt International Exhibition Center

20 November (Thursday): Monetary Policy Committee meeting.

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

DECEMBER

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

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

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

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.

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

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.

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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