Non-oil private sector activity slips in April

Wednesday, 7 May 2025

Non-oil private sector activity slips in April

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Today at a glance

Economy

Non-oil private sector activity slips further into the red in April.

Tax

A look into the gov’t’s targeted revenues from the planned stamp tax on EGX transactions.

Economy

Foreign reserves increase by USD 387 mn in April to USD 48.1 bn.

What We're Tracking Today

A second, larger subsidized loan program for hospitality players?

Energy

Scatec breaks ground on Obelisk solar and battery storage project.

DEBT WATCH

Hassan Allam Construction lines up USD 2.8 bn in maiden musharaka sukuk sale.

Also on our Radar

Egypt is looking to up its Moroccan imports to USD 600 mn.

PLANET FINANCE

US trade deficit hits record high as companies scramble to beat Trump’s new tariffs.

HARDHAT

A look at East Port Said Port development plans.

What We're Tracking Today

A second, larger subsidized loan program for hospitality players?

Good morning, friends. We have another packed issue for you this morning, led by April’s PMI reading, a fresh update on the planned stamp tax, and net foreign reserves continuing their decline.

PSA-

#1- Don’t fall for unlicensed schemes: The Financial Regulatory Authority (FRA) issued a warning urging citizens to avoid unlicensed entities promoting investments in gold, crypto, real estate, or securities. Currently, there are only three licensed gold investment funds in Egypt, and any platform offering investment without the FRA approval is illegal. A blacklist of violators will be shared with the public soon, the FRA said.

#2- Egyptians will be able to access the country’s antiquities museums free of charge on Sunday, 18 May in celebration of International Museum Day, after the Supreme Council of Antiquities' board approved the decision. However, the decision does not include the Egyptian Museum in Cairo, the National Museum of Egyptian Civilization, or the Grand Egyptian Museum.

WEATHER- It’s another warm day in Cairo, with a high of 34°C and a low of 21°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 30°C and a low of 19°C.

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

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

WATCH THIS SPACE-

#1- Could we expect a blackout-free summer? The Oil Ministry plans to increase natural gas supply to power plants to 3.3 bn cubic feet per day starting June, marking a 22% increase from the quantities supplied during 1Q 2025, a government source told Al Arabiya. Nine power plants that partially operate on mazut will also see an increase in mazut supplies to 32k tons per day in June, compared to 25k tons a day in May. The additional supply is expected to meet high energy demand in the summer months.

Thinking ahead: The Oil Ministry is currently in talks with a number of international natural gas suppliers to secure long-term LNG contracts extending to 2028 or 2030, the source said.

REFRESHER- Egypt is expected to receive between five to six gas shipments per month during the summer months to meet rising demand, a senior government official has previously told us.

#2- Gov’t wants to make it easier for global brands to enter the country: The Madbouly government will mull the creation of a “whitelist” of international brands to facilitate their customs clearance following Prime Minister Moustafa Madbouly’s directives, according to a statement. The measure is among several under consideration to ease market entry for foreign labels and support the state’s goal of turning Egypt into a shopping destination for tourists. The list would be part of a broader package of regulatory and digital reforms currently being formulated to streamline brand registration, reduce customs and tax burdens, and promote Egypt as a regional retail hub.

#3- Hospitality players could be in for a larger subsidized loan program: The Tourism Ministry is looking to secure some EGP 200 bn to launch the second iteration of the subsidized loan program for hospitality players, Tourism Minister Sherif Fathy told Asharq Business (watch, runtime: 5:21). The second iteration of the program will be a little different than the first, with the ministry focusing on establishing new entities or new hotels instead of just adding rooms to existing hotels, Fathy said..

When is it coming? “It won’t be very soon, because when we discussed it with the Finance Ministry and the central bank, they requested pushing it for sometime,” Fathy told the news outlet.

REMEMBER- The Madbouly government launched a EGP 50 bn program in October offering subsidized loans to tourism players at a 12% interest rate, providing tourism operators with extended support to expand facilities and accommodate an anticipated growth in visitor numbers.

DATA POINT-

IFC to invest USD 1 bn in Egypt’s agri-food sector this year: The International Finance Corporation (IFC) plans to invest USD 1 bn in Egypt’s agriculture and food industries during 2025, an IFC official told Al Shorouk. The official said the IFC is focusing on high-potential crops across North Africa, which include tomatoes, strawberries, onions, and citrus in Egypt.

CIRCLE YOUR CALENDAR-

Egypt will host a delegation from the European Commission late in May to finalize negotiations to unlock a tranche of the EUR 4 bn grant from the EU, according to a statement. The financing — part of a broader EUR 5 bn macro-financial assistance package agreed in March 2024 — was approved by the European Parliament last month.

ICYMI- Planning Minister Rania Al Mashat told us earlier this week that Egypt is following up with the European Commission on the structural reform measures tied to the second phase of the package. Meanwhile, EU Ambassador to Cairo Angelina Eichhorst was quoted as saying that the tranche will land in state coffers within weeks.

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 all about conflicts escalating (and de-escalating) in the global press this morning.

Tensions are flaring on the Indian-Pakistani border, with Delhi mounting targeted aerial attacks against what it called “terrorist sites” inside Pakistan and the Kashmir province, killing eight and injuring dozens. The attacks have been framed as a retaliation against deadly terrorist attacks that hit India last month.

Pakistani military officials said they shot down five Indian planes in response, and that troops are exchanging fire along the ceasefire line in Kashmir.

CLOSER TO HOME- Oman said in a surprise announcement it brokered a ceasefire last night between Yemen’s Houthis and the US, shortly after US President Trump confirmed strikes on the Houthis will stop in return for an end to attacks on US ships in the Red Sea. The ceasefire apparently blindsided Israel, just hours after waging airstrikes that took Yemen’s main airport out of service.

Trump also hinted at a “very, very big announcement” ahead of his scheduled trip to the Middle East next week, stopping short of providing any details but saying it’s “really positive.”

The teaser came during a tense-but-civil meeting in the Oval Office with Canadian PM Mark Carney, where Carney assured Canada is “not for sale,” to which the Donald responded, “time will tell.” The meeting aimed to bridge differences on tariffs and trade.

SPEAKING OF TRADE- US Treasury Secretary Scott Bessent is heading to Switzerland this week for the first officially confirmed trade negotiations with China, sparking hopes of de-escalation between the world’s two largest economies.

ALSO WORTH READING THIS MORNING-

Drone attacks by Sudanese paramilitary RSF on key infrastructure left Port Sudan without power. The widespread attacks also targeted army bases and fuel depots.
Conservative leader Friedrich Merz was elected Chancellor yesterday, needing a second round of voting after his loose coalition in the German parliament failed to secure enough votes in the first round.

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

In today’s issue: We look at plans to develop the East Port Said Port.

Tags:

What We're Tracking Today

Somabay Sports Arena steps up as a leading sports destination by welcoming new partnership with S Tennis Academy and expanding its partnership with Oneflow to manage Football Courts and the Aquatics Center. With global training camps, elite facilities, and stunning surroundings, Somabay continues to shape the future of sports tourism on the Red Sea.

Economy

Egypt’s non-oil private sector activity slips further into the red in April

Non-oil private sector activity continued to decline in April, which non-oil firms attributed to declining demand amid weaker consumer spending, according to S&P Global’s latest Purchasing Managers Index (PMI) report (pdf). Egypt’s headline figure fell 0.7 percentage points to 48.5 in April, down from 49.2 in March, marking Egypt’s lowest PMI reading in 2025 so far.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

New orders and overall output were both down: The new orders sub-index fell to 47.24, down from 49.0 in March, with businesses reporting a drop in customer spending, which led to lower intakes of new business, Reuters reports. This, in turn, led to a reduction in output, with the output sub-index dipping to 47.4, down from 48.6 a month prior. Rates of contraction for both new orders and output were at their lowest level in four months.

Input purchases were also down as a result, with lower levels of activity spurring the most marked decrease in purchasing activity since last October. Meanwhile, employment saw a decline for the third consecutive month, with firms looking to limit their hiring activity and their headcount amid subdued activity.

The effect of rising fuel prices is starting to show: Input prices rose at their fastest pace in four months in April, with panelists indicating that this was down to an increase in fuel prices, as well as higher material and staff costs. However, this did not reflect on output prices, which remained unchanged during the month. “Although input costs rose at a much sharper pace over the month, this was mainly attributed to the roughly 15% uplift in fuel prices, rather than underlying inflationary pressures,” S&P Global Senior Economist David Owen said.

REMEMBER- The Oil Ministry’s fuel pricing committee raised vehicle fuel prices by 11.8-14.8% last month, in what was the government’s first fuel price hike since October 2024. Analysts we spoke to agreed that the hike will add to inflationary pressures — and even push up the headline figure.

It’s not all doom and gloom for businesses: “Non-oil firms were more confident about future activity in April, with optimism ticking up to a three-month high, although the level of confidence remained subdued in comparison to the long-run trend. Firms with a positive outlook generally hoped that market conditions at home and abroad would strengthen,” the report reads.

Tags:

economy PMI S&P

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Tax

A look into Egypt’s targeted revenues from the planned stamp tax on EGX transactions

More details emerge on the planned stamp tax on EGX transactions: The Finance Ministry is looking to collect some EGP 722 mn from the incoming stamp tax on EGX transactions in the upcoming fiscal year, as part of a broader plan to collect some EGP 61 bn from stamp duties through various channels, a government source told EnterpriseAM.

REMEMBER- A government source told EnterpriseAM earlier this year that the long-awaited and repeatedly delayed capital gains tax on EGX transactions may never come, with the cabinet having held discussions over alternatives to it — particularly a stamp tax on EGX transactions.

The timeline: The draft law for the implementation of the stamp tax on EGX transactions is currently in its final stages of preparation ahead of being submitted to the House of Representatives for final approval, upon which it would replace the long-delayed capital gains tax on bourse transactions.

The stamp tax will be imposed on daily buy and sell transactions, and Misr for Central Clearing, Depository and Registry (MCDR) will collect it on behalf of the Finance Ministry at a rate of 1.25 per 1k from both resident and non-resident investors, whether they are buyers or sellers.

What this means for tax returns: Returns that have been submitted include the income they made on their entire investment portfolio up until last December, as the capital gains tax law was still in effect up to that point. Should the new law replacing the capital gains tax with a stamp tax state pass and be applied retroactively — meaning that it would cover past transactions as well — investors who already paid capital gains tax on their 2024 earnings might be able to get a refund.

This will serve to simplify tax procedures, the source said, adding that calculating the tax on buying and selling will help the government reach its targeted revenues.

Tags:

capital markets EGX tax

Economy

Egypt’s foreign reserves increase by USD 387 mn in April to USD 48.1 bn

Net foreign reserves rose to USD 48.1 bn at the end of April 2025, marking a USD 387 mn increase from March, according to data from the Central Bank of Egypt. Net foreign reserves continued to increase m-o-m for the 32th consecutive month.

Here’s the breakdown, according to CBE data (pdf):

FX reserves fell USD 812 mn to 34.3 bn in April, down from 35.1 bn in March;
Gold reserves increased some USD 1 bn to USD 13.6 bn, up from USD 12.6 bn;
Special drawing rights rose USD 176 mn to USD 194 mn, up from just USD 18 mn.

What the experts say: Banking expert Hany Abou El Fotouh described the figure as a “historic jump,” but cautioned that the figure should be looked at in relation to external debt. He noted that while some of the increase came from real inflows like tourism revenues, remittances, and debt investments, “the largest chunk of the increase came from external financing — be it through international loans, regional deposits, or bond issuances.” This, he said, ties the rise in reserves to an increase in external debt. “From an economic perspective, there must be a balance to ensure this improvement is sustainable without a large rise in debt obligations.”

Real sustainability still in question: “The number is reassuring, but it could be temporary if not supported by actual increases in production and exports,” he said, adding that if reserves are largely dependent on borrowing, they will fall again when repayments come due. He emphasized that “the rise in reserves gives the state better capacity to meet short-term external obligations,” but said Egypt needs to “control the pace of borrowing, rationalize spending, and direct loans toward productive projects instead of covering import gaps.”

Egypt’s net foreign reserves have increased by USD 12.8 bn since the government announced the USD 35 bn Ras El Hekma agreement that coincided with the float of the EGP and FX liquidity returning to the official banking system, paving the way for more international funds. In February 2024 — the month immediately before the float — foreign reserves stood at USD 35.3 bn.

Tags:

Central Bank of Egypt economy foreign reserves

Energy

Scatec breaks ground on Obelisk solar and battery storage project in Egypt

Scatec starts constructing latest Egypt project: Scatec has kicked off construction of its USD 590 mn, 1.1 GW Obelisk solar project with 200 MWh of battery energy storage in Nagaa Hammadi, according to a press release. The project will be built over two phases and will be fully operational in the second half of 2026.

The details: The first phase will bring 561 MW of solar energy and /200 MWh of battery storage online in the first half of 2026 and the second phase will add another 564 MW of solar power in the second half of 2026. Scatec will also handle engineering, procurement and construction, asset management, and operations & maintenance.

ICYMI- The project was awarded the golden license last December.

Where’s the money coming from? Scatec signed equity bridge loans worth USD 120 mn for the project and put off the project equity injections until construction is done. The Arab Energy Fund will provide USD 90 mn, while the European Bank for Reconstruction and Development will provide another USD 30 mn.

That’s not all: The energy player also signed a mandate letter for its long-term, non-recourse debt, accounting for 80% of the project’s capex, with a group of development finance institutions. Other discussions are being held with potential equity partners, with financial close for the project expected within the next few months.

Offtake is secured: Scatec signed a USD-denominated, 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company (EETC), which will be backed by a sovereign guarantee.

A first for Egypt: “We are proud to break ground on Egypt’s first hybrid solar and battery project, building on our proven track record with similar developments. Egypt has ambitious targets to build out significant renewable energy capacity the coming years, and this milestone further strengthens Scatec’s position as a leading renewable energy producer in the country,” Scatec CEO Terje Pilskog said,

REMEMBER- The project will be connected to the grid by 220 kV transmission lines built under a contract signed last month between the EETC and a consortium of Kharafi National and Power Ring.

Tags:

energy renewables Scatec

DEBT WATCH

Hassan Allam Construction lines up EGP 2.8 bn in maiden musharaka sukuk sale

Hassan Allam Construction taps local sukuk market in first-ever issuance: Our friends at Hassan Allam Construction closed an EGP 2.8 bn musharaka sukuk issuance, marking their debut into the debt capital market, according to a press release (pdf). Proceeds from the debt sale will go towards financing one of Hassan Allam Construction’s Bab Misr project.

Demand ran hot: The offering saw strong demand and closed oversubscribed. The National Bank of Egypt and Suez Canal Bank were underwriters, with additional participation from Abu Dhabi Commercial Bank, Industrial Development Bank, and Saib.

The details: The issuance was structured as a musharaka sukuk, giving investors joint ownership in the underlying project — here Bab Misr — with returns tied to the project’s actual performance rather than a fixed rate.

ADVISORS- Al Ahly Pharos quarterbacked the transaction as lead manager, financial advisor, bookrunner and underwriter. Zulficar and Partners provided legal counsel, with Baker Tilly serving as auditor. Meanwhile, MERIS acted as the credit rating agency, ECG as independent engineer, and RSM as the independent financial advisor.

About Bab Misr: Bab Misr is a 100k sqm greenfield mixed-use project located in Cairo. The development includes 17 buildings for commercial, residential, administrative, medical, and parking use. It is owned by Hassan Allam Construction’s wholly-owned subsidiary Bab Misr Development and falls under a broader redevelopment plan for the area around the Upper Egypt railway station.

Tags:

debt debt watch Hassan Allam Holding

LAST NIGHT’S TALK SHOWS

Gold investment funds and policy coordination dominate the airwaves

Beware, unlicensed investment channels: In a refreshing break from the Old Rent Law, the nation’s talking heads shifted their attention to the Financial Regulatory Authority’s latest statement warning people against unlicensed investment schemes. Masa’a DMC interviewed FRA Head Mohamed Farid (watch, runtime: 11:39), who explained that there are only three licensed gold investment funds on the market with combined investments exceeding EGP 2.1 bn and over 200k investors. Farid said the numbers reflect growing public trust in regulated investment channels.

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

AND- El Sisi calls for tighter fiscal-monetary coordination. DMC’s Al Youm covered President Abdel Fattah El Sisi’s meeting yesterday with Prime Minister Moustafa Madbouly, Central Bank Governor Hassan Abdalla, and Finance Minister Ahmed Kouchouk (watch, runtime: 1:13). During the meeting, El Sisi stressed the importance of aligning fiscal and monetary policies together and with the state’s economic vision, boosting FX reserves, and covering development financing needs — while sustainably lowering public and external debt levels.

Tags:

gold investment watch LAST NIGHT’S TALK SHOWS

Also on our Radar

Egypt is looking to up its Moroccan imports to USD 600 mn

TRADE-

Egypt is looking to up its imports from Morocco: Egypt is studying a plan to ramp up imports from Morocco to USD 600 mn over the coming period to address the trade imbalance between the two countries, Mohamed Saada, Secretary General of the Federation of Egyptian Chambers of Commerce, said. Saada added that the government is also exploring the import of Moroccan fish and securing a quota for Egyptian fishing in Moroccan territorial waters.

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

The federation is currently in coordination with the Federation of Moroccan Chambers of Commerce to activate a joint operations unit to follow up on the implementation of agreements from the Egyptian-Moroccan Investment Forum that took place earlier this week and help turn them into real investment projects, Saada said.

** We dive into what went down at the forum and the trade imbalance between the two nations in a story published earlier this week. Check it out here.

ENERGY-

Chevron will invest at least USD 120 mn in a new exploration concession after the Oil Ministry reportedly approved a new exploration agreement granting US energy giant Chevron the rights to explore for oil and gas in the West Star concession in the northeast Mediterranean, a government source told Asharq Business. Under the terms of the agreement, Chevron will invest a minimum of USD 120 mn, which will cover seismic surveys and the drilling of at least one exploratory well. This follows the energy giant’s official exit from its 45% stake in Red Sea Block 1.

ICYMI- Egyptian Natural Gas Holding Company launched bids for 12 oil and gas exploration blocks in the Mediterranean and Nile Delta in August last year, offering 10 offshore and two onshore areas. An unnamed government official told Asharq Business earlier this week that Chevron, Shell, and Eni have submitted offers for the exploration blocks.

HOSPITALITY-

Global hospitality player Minor Hotels will set up the first hotel under its Anantara brand in Egypt under an MoU inked with Somabay Hotel Company, a press release reads. Minor Hotels will set up an Anantara resort and branded residence complex in Somabay, the release said, adding that the details of the project will be announced shortly.

RECYCLING-

Efforts to recycle tires and agricultural waste: The Arab Organization for Industrialization inked two agreements for industrial recycling projects, the first is a project to recycle used tires between the AOI’s Atico Wood Industries Factory and Asian company Green Avenue for Treatment and Recycling. The project will have an annual production capacity of 50k tons in its first phase. The second project involves the production of wood pellets from agricultural waste and it will be set up by Atico and BIKEM Industrial Investment and Sustainable Development Company.

FINTECH-

EgyptAir signed an exclusive multi-year partnership with Visa to roll out a co-branded payment card offering travel rewards, faster mile accumulation, and lifestyle perks, according to a statement (pdf). The partnership aims to enhance the digital travel experience and support the airline’s expansion.

More Visa cooperation ahead? Visa CEO Ryan McInerney yesterday met with Prime Minister Mostafa Madbouly and Central Bank Governor Hassan Abdalla to discuss the company’s investment plans in Egypt, which include an expanded role in government-backed digital initiatives, such as the unified subsidy card and transport payment systems, a cabinet statement reads. Visa also proposed using its Visa+ technology to facilitate faster inbound remittances.

Tags:

ALSO ON OUR RADAR Arab Organization for Industrialization Chevron Fintech oil and gas recycling trade Visa

PLANET FINANCE

US trade deficit hits record high as companies scramble to beat Trump’s new tariffs

The US trade deficit widened to an all-time high in March 2025, expanding 14% m-o-m to USD 140.5 bn as businesses rushed to bring in goods before the tariffs introduced by President Donald Trump came into effect, according to latest Commerce Department data. The deficit has widened 92.6% year-to-date. Imports from a number of nations soared to record levels, while imports from China hit a five-year low amid a sharp drop in shipping volumes.

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

Imports surge past forecasts: The deficit was USD 3.5 bn wider than the USD 137 bn forecast by economists polled by Reuters. The overall goods trade deficit widened 11.2% m-o-m to a record USD 163.5 bn during the month, while imports rose 4.4% m-o-m to a high of USD 419.0 bn.

Why the surge? “Businesses are clearly scrambling as they try to find a way through this time of unprecedented change,” FWDBONDS Chief Economist Christopher Rupkey told the newswire. “But the worst is undoubtedly yet to come because the import tariff collections did not start to roll in earnest until after the White House ‘Liberation Day’ announcement on 2 April.”

Rush to import before tariffs bite: Imports from Mexico, the UK, Ireland, the Netherlands, Belgium, France, Germany, Italy, India, and Vietnam hit record highs as buyers scrambled to get ahead of Trump’s trade measures. ”Imports from the EU were substantial in March, particularly from Ireland, and may decline in April,” Citigroup economist Veronica Clark said. “But if anything, imports from some Asian countries may rise further as larger 40%-50% tariffs were delayed until July.”

What about exports? Exports rose a mere 0.2% m-o-m to a record USD 278.5 bn in March. Goods exports climbed 0.7% to USD 183.2 bn — their highest level since July 2022 — driven by a USD 2.2 bn increase in industrial supplies and materials. Auto and auto parts exports also added USD 1.2 bn, but that was offset by a USD 1.5 bn drop in capital goods.

The news received attention from: Reuters | Bloomberg | AP

MARKETS THIS MORNING-

Asian markets are in the green this morning. The Shanghai Composite is up 0.6%, the Hang Seng is looking at gains of 1.6%, and Korea’s Kospi is up 0.3%. Meanwhile, Japan’s Nikkei is down 0.1%.

EGX30	32,285	+0.2% (YTD: +8.6%)
USD (CBE)	Buy 50.6	Sell 50.73
USD (CIB)	Buy 50.6	Sell 50.7
Interest rates (CBE)	25.00% deposit	26.00% lending
Tadawul	11,434	+0.1% (YTD: -5.0%)
ADX	9,623	+0.6% (YTD: +2.2%)
DFM	5,353	+0.2% (YTD: +3.8%)
S&P 500	5,607	-0.8% (YTD: -4.7%)
FTSE 100	8,597	0.0% (YTD: +5.2%)
Euro Stoxx 50	5,263	-0.4% (YTD: +7.5%)
Brent crude	USD 62.01	+3.0%
Natural gas (Nymex)	USD 3.49	-1.8%
Gold	USD 3,441	+3.6%
BTC	USD 94,799	+0.1% (YTD: +1.3%)
S&P Egypt Sovereign Bond Index	864.4	+0.3% (YTD: +11.2%)
S&P MENA Bond & Sukuk	143.7	0.0% (YTD: +2.7%)
VIX (Volatility Index)	24.76	+4.7% (YTD: +42.7%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 3.8 bn (15.5% below the 90-day average). Local investors were the sole net sellers. The index is up 8.6% YTD.

In the green: Emaar Misr (+1.4%), CIB (+1.3%), and Orascom Construction (+1.1%).

In the red: Juhayna (-2.6%), Qalaa Holdings (-1.7%), and TMG Holding (-1.5%).

CORPORATE ACTIONS-

B Investments’ general assembly approved distributing a dividend of EGP 1.25 per share for its 2024 earnings, according to a disclosure (pdf) to the EGX.

Tags:

Donald Trump Financial Markets Planet Finance trade

HARDHAT

A look at East Port Said Port development plans

East Port Said Port is in line for a major upgrade: The Madbouly government is working on development plans for the East Port Said Port, leveraging its location next to the Suez Canal and its deep-water facilities that can accommodate large vessels, as part of broader efforts to position it as a major hub for transshipment.

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

Expanding the port’s capacity: Recent expansion work added 6.3 km to the port’s length, which helped increase its overall handling capacity to 9-10 mn containers last year. In 2024, the port accounted for 79% of Egypt’s total transshipment trade, a senior official from the port told EnterpriseAM.

It’s business as usual at the port despite regional disruptions: The new expansions allowed the port to continue operating smoothly even as Suez Canal traffic dropped due to tensions in the Red Sea, the source added. The port managed to double trips to and from Saudi Arabia as an alternate route amid disruptions that pushed ships away from the Bab El Mandeb Strait.

East Port Said is drawing new shipping alliances: While some major shipping lines are still considering a return to the Suez Canal, East Port Said has already attracted several new alliances. The current container terminal operated by AP Moller-Maersk is a key transshipment point. The port remains open to accommodating more lines and agreements, the source said, adding that Hapag-Lloyd is in the process of developing an independent terminal that is set to go online at the end of the year or early 2026.

New terminals are set to launch in 2H 2025: Several projects under construction are set to launch in the second half of the year, including a general cargo terminal, a dry bulk terminal, and a ro-ro terminal. The ro-ro terminal will feature a car handling line with an annual capacity of 800k vehicles, potentially attracting global carmakers to the region.

Also in the pipeline: Sky Logistics and Reliance Logistics are working on a multipurpose terminal, which is expected to be operational in 2H 2025. A pilot phase has already handled 6 mn tons of cargo, drawing fully integrated supply chains to the area. The Roots terminal for clean dry bulk is also expected to kick off operations soon.

Sizable investment: Infrastructure development for the new expansions has cost some USD 500 mn, according to the source.

ICYMI- AD Ports Group has recently signed a 50-year renewable usufruct agreement with the SCZone to develop and operate an industrial and logistics zone in East Port Said, with investments that could reach USD 120 mn for the first phase.

To attract investors to the area: The government has introduced several incentives to attract investors, which include customs exemptions, competitive energy prices, five-year residency permits, 5% VAT and customs rate for activity in logistics zones, and 50% corporate tax rebate for five years.

Time is money: The latest development work means that turnaround times at the East Port Said Port have been significantly reduced, leading to time and cost savings for shipping lines and supply chains, the source added.

Your top infrastructure story for the week: Hong Kong-headquartered W Ships is launching a weekly service this month connecting Egyptian ports with key ports in Turkey, India, Greece, Spain, and Saudi Arabia. (Al Mal)

Tags:

East Port Said Hardhat infrastructure logistics Suez Canal Economic Zone

CALENDAR

MAY

1 May-10 July (Thursday-Tuesday): 500 Global's Scale Up Program, Cairo

7-10 May (Wednesday-Saturday): Egypt hosts the 24th Pan Arab Junior and Ladies Golf Championship

8-10 May (Thursday-Saturday): RiseUp Summit at the Grand Egyptian Museum

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

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

18-19 May (Sunday-Monday): International Monetary Fund MENA Research Conference, Cairo, Egypt

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

22 May (Thursday): Central Bank’s Monetary Policy Committee to meet to decide interest rates

25 May (Sunday): Social Education Summit 2025, Cairo, Egypt

30-31 May (Friday-Saturday): Africa Business Summit, London, UK

Egyptian Exporters Association (Expolink) exhibition, Italy

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo

JUNE

2-4 June (Monday-Wednesday): Manufacturing and packaging forum ProPak MENA 2025, Egypt International Exhibition Centre.

3 June (Tuesday): S&P Global to release PMI data for May recording non-oil private sector activity

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

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

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

Realme to open smartphone factory

IFC President Makhtar Diop to visit Egypt

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

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

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

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

SEPTEMBER

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

NOVEMBER

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

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

EVENTS WITH NO SET DATE

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

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

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.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

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

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.

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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