Our first look at the economy’s performance last fiscal year

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What We're Tracking Today

Another IPO is upon us, with Geos looking to go public in November

Good morning, folks, and welcome to the start of a new workweek. We have a packed issue for you this morning to kick off the week, led by our first glimpse into last fiscal year’s performance — we recorded our highest ever primary surplus and tax revenues saw a notable jump thanks to the long list of reforms implemented. We also bring you news of yet another Chinese investor setting up shop at home, with Chinese flooring heavyweight Jiangsu Zhengyong inking an agreement to build a USD 85 mn plan in Sokhna.

And a little bit of real estate: EnterpriseAM spoke to Bonyan CEO Tarek Abdel Rahman to learn more about the company’s acquisition pipeline following its IPO. And we continue our dive into last year’s real estate trends, with the second part of our coverage of Aqarmap’s Egypt Real Estate Trends 2025 report.

PSA-

WEATHER- We are looking at more moderate weather after what has been a very hot weekend. Cairo is in for a high of 35°C and a low of 25°C today, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 31°C and a low of 23°C.

WATCH THIS SPACE-

#1- Geos for Trading and Contracting is looking to debut a 25% stake (good for 26.25 mn shares) on the EGX in a primary offering before year-end, Al Borsa reports, citing unnamed sources it says are in the know. This is less than the 33.33% stake that the local news outlet had reported in March. The company is targeting a November offering, pending the Financial Regulatory Authority’s sign-off on its fair value study, the sources said. The company was listed on the EGX on Thursday with an issued capital of EGP 105 mn divided across 105 mb shares, but it isn’t trading.

ADVISORS- Prime Holding will manage the sale, while Fact Financial Consulting is acting as an independent advisor.

#2- Seven to eight Chinese big-name companies are mulling expanding into Egypt before the end of the year, with investments expected to reach USD 3-4 bn once the projects are fully developed, Egyptian-Chinese Business Council Vice President Moustafa Ibrahim told Al Arabiya. Ibrahim did not mention the companies by name, but compared their size to tech giant Huawei, which clocked in some USD 118.1 bn in revenues last year.

And you can partly thank Trump for Chinese investors’ increased appetite for Egypt: Washington’s ramping up of tariffs and singling out of China has pushed manufacturers to look outside of the world’s factory to offshore production in countries with lower tariff rates like Egypt, Ibrahim said. Chinese investment in Egypt currently stands at around USD 8 bn, with ambitions to push that to USD 12 bn “within a short period,” Ibrahim said, adding that Egypt could attract as much as USD 6 bn in Chinese investment next year if the current pace continues.

#3- The Egyptian Exchange has officially launched its first mobile application, with the aim of boosting transparency and improving communication in the market, according to a statement. The app, released in an initial pilot version, gives users access to real-time market updates, listed securities data, and index movements, alongside the latest market news. You can find the application on Google Play.

SETTING THE TONE-

The USD 35 bn agreement to more than double our Israeli gas imports will in no way affect Egypt’s stance on Palestine, Prime Minister Moustafa Madbouly said during his weekly presser last week. Madbouly also emphasized that the agreement was only an extension of a 2019 agreement in light of an expected increase in production from the Leviathan field and not a completely new agreement.

DATA POINT-

Egypt’s population increased by 1 mn in 287 days, passing the 108 mn mark yesterday, according to data from state statistics agency Capmas. The rate of population growth marks a slowdown from the 268 days taken to add the previous 1 mn and the fifth consecutive slowdown per 1 mn increase.

One Egyptian is now born every 16.7 seconds, with Assuit, Sohag, and Qena having the highest birth rates and Port Said, Damietta, and Dakahlia the lowest.

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

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CIRCLE YOUR CALENDAR-

Looking to do your master’s in the UK? Aspiring master’s students can now apply for the British government’s Chevening scholarship, which will be accepting applications until 7 October. The scholarship offers full financial support for students to pursue a one-year master’s degree in any subject at any UK university. Applications can be submitted online through the Chevening website.

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-

There’s only one story leading the conversation in the international press this morning: Russia and the US’ summit on Ukraine in Alaska yesterday, which ended with no ceasefire agreement — but with Russian President Vladimir Putin reportedly demanding more land in Ukraine. The meeting is being framed as a “triumph” for Putin, who was met with a red carpet in Anchorage and left without evidence of coming under real pressure from the US’ Donald Trump to reach a ceasefire agreement. After previously stating that he and Putin would not leave their meeting without a ceasefire agreement, Trump later said on Truth Social that the best path forward would be “to go directly to a peace agreement.” Ukraine’s Volodymyr Zelensky is now scheduled to meet with Trump tomorrow. Reuters, BBC, Bloomberg, and CNBC have the story, while the Financial Times, Politico, and the Wall Street Journal have analytical takes on how Trump failed to negotiate a victory.

Egypt posts highest ever primary surplus in FY 2024-2025

Egypt recorded its highest-ever primary surplus of EGP 629 bn — 3.6% of GDP — in the fiscal year 2024-2025, up 80% y-o-y. This came during a meeting yesterday between President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly, and Finance Minister Ahmed Kouchouk to review last fiscal year’s preliminary financial indicators.

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

The surplus came despite external pressures including a 60% shortfall in Suez Canal revenues compared to budget targets, leading to a gap of about EGP 145 bn, Kouchouk said.

Tax revenues saw their fastest growth in years, rising 35.3% y-o-y to EGP 2.2 tn, which Kouchouk attributed to tax measures introduced to widen the tax base and create a more efficient tax system.

REMEMBER- The Finance Ministry has been rolling out tax reforms aimed at boosting tax revenues without the introduction of new taxes, that includes measures to make it more attractive for businesses to settle disputes dating to before 2020 and simplifying the SME tax regime.

Already bearing fruit: Between February and August around 402k companies put in requests to settle pre-2020 tax disputes and more than 104k SMEs have filed requests to qualify for the new tax breaks, under which they will be taxed on their turnover. The Finance Ministry also received 650k amended and new tax returns, generating nearly EGP 78 bn in revenues.

Revenue growth outpaces spending: Total revenues rose 29.0% y-o-y during the fiscal year, while primary spending increased at a slower pace, growing by 16.3% y-o-y.

No word on growth: The meeting didn’t cover other indicators that would help give us a better understanding of the fiscal year’s performance, like growth. We know that the government expects growth for FY 2024-25 to exceed its 4.0% target, thanks to a rebound in private investment and non-oil manufacturing activity.

Moving forward: El Sisi directed the officials to keep their focus on fiscal discipline, while working more closely with the private sector to sustain growth and financial stability. Priorities include cutting debt service costs, maintaining a primary surplus, and channeling more spending toward social protection programs, along with additional allocations for healthcare and education.

Chinese flooring heavyweight Jiangsu Zhengyong to build USD 85 mn Sokhna plant

Chinese flooring giant Jiangsu Zhengyong Flooring Decoration Material will set up an USD 85 mn flooring and wall panels plant in the Sokhna Industrial Zone, according to a Suez Canal Economic Zone statement.

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

The details: The 181k sqm facility will produce PVC and recycled-material flooring and wall panels, with an annual capacity of 27 mn sqm. Some 90% of the output will be exported, with the remainder earmarked for local sale. The plant is expected to create 500 jobs.

The investment comes out of the SCZone’s July promotional tour in China, which included a stop in Jiangsu province’s capital Nanjing, where officials met with representatives from Jiangsu Zhengyong, one of the world’s largest producers of PVC, WPC, and SPC flooring products, with a footprint in multiple global markets.

DATA POINT- Egypt wants to double Chinese investment to USD 16 bn over the next four years, Trade Commissioner Abdelaziz El Sherif said last month.

Bonyan CEO Tarek Abdel Rahman on the acquisitions pipeline and what’s next for Egypt’s office market

Bonyan’s post-IPO playbook: Fresh off a successful IPO, Bonyan’s first results as a public company point to healthy growth in asset values, outpacing inflation, alongside a solid jump in rental revenues. The uplift is underpinned by near-full occupancy, FX-linked lease adjustments, and a lean cost base. We sat down with CEO Tarek Abdel Rahman to unpack what’s in the pipeline and how the market is shaping up.

EnterpriseAM: How do you see Bonyan’s performance in the first half?

Tarek Abdel Rahman: Bonyan is a unique model on the EGX and in Egypt in general. We are a real estate investment company that acquires properties with a focus on built and leased office buildings. Our model is closer to a Real Estate Operating Company (REOC). It’s a widely used model abroad: we invest in real estate and have the flexibility to use cash flows for reinvestment. Real estate investment trusts (REITs), by contrast, are required to distribute 90% of cash flows. We are closer to the REOC model.

When assessing the company’s performance or health, we first look at the Gross Asset Value (GAV). We engage a valuer licensed by the financial regulator every quarter. The latest valuation of GAV came in at EGP 17.4 bn by end of 1H 2025, up 9% from 31 December 2024. When you compare that increase to inflation; inflation was 7.9% at the time, meaning assets grew by about 1.1 percentage point above inflation.

We also track rental revenues, which increased by 22% in 2Q and by 35% to EGP 345 mn in 1H. The increase came from raising the occupancy rate from 88% to 96%, renewing tenant contracts, and adjusting USD linkage in some agreements. We have 10 assets with a total gross leasable area of 148k sqm, while eight assets are effectively included on the balance sheet.

On the cost side, direct expenses are limited (around 20–21% of rental revenues) — security, property management, etc. — making the business highly profitable.

EnterpriseAM: How did the real estate market perform in your segment?

Abdel Rahman: Indicators are positive: assets were up 9% and rents increased. We renewed six tenants at higher rates (representing 10% of rental value), and we added new tenants in existing buildings.

EnterpriseAM: With inflation receding, do asset prices continue to rise?

Abdel Rahman: Yes. The relationship is tied to inflation: for example, with 30% inflation, property prices might rise around 40% annually; with 10% inflation, you might see increases of about 15%. There’s no logic for excessive price jumps with low inflation in a stable environment.

EnterpriseAM: Your earnings release mentioned a “retail asset sales” line — what is it?

Abdel Rahman: We have 2.3k sqm earmarked for sale. Sometimes banks or other clients prefer to buy rather than lease, so we sell to them. We have previously sold 17k sqm to Banque Misr, the National Bank of Egypt, CIB, and Metro supermarket. Currently, only 2.3k sqm are available for sale; we’re not in a rush and will wait for the optimal price.

EnterpriseAM: What is your investment plan following your successful IPO?

Abdel Rahman: The IPO included a EGP 250 mn capital increase. Our model — especially in a high interest rate environment — is to acquire a building financed 65-70% by banks and the rest is self-funded. Since we buy built, income-generating assets, rents service the debt over 7-8 years. After that, the asset becomes debt-free and could be worth triple its current value.

EnterpriseAM: ِDo you have any upcoming acquisitions in the pipeline?

Abdelrahman: During the IPO we said we were in negotiations over seven buildings. We are now in final negotiations to acquire a 5k sqm asset.

EnterpriseAM: Do you still prioritize East and West Cairo?

Abdel Rahman: Yes, East Cairo, then West Cairo.

EnterpriseAM: Are there still sufficient prime locations for expansion?

Abdel Rahman: Absolutely. In New Cairo, for example, North and South 90 Street; and in Sixth of October, the Sheikh Zayed Axis, Smart Village, etc. The options are plenty.

EnterpriseAM: Developers are increasingly focused on offices and recurring income, managing assets themselves or via third parties. Do you feel competition?

Abdel Rahman: The majority of developers sell on plan; a minority retain and manage. We’ve previously bought from developers like Redcon.

EnterpriseAM: What about your property and facilities management operations?

Abdel Rahman: It’s a core part of the business, but we outsource a lot of it to specialized firms. Property management for the commercial segment is handled in-house; for office assets, we use a specialized company. Facilities management — security, cleaning, maintenance, landscaping — is a standardized service that any qualified provider can deliver.

EnterpriseAM: Do you expect more competition as real estate funds are activated and PropTech develops?

Abdel Rahman: Yes. There will be competition from real estate funds. At its core, Bonyan is a fund in the form of a company that owns income-generating assets. A growing market benefits everyone. We’ve heard of entities applying for fund licenses and we hope that happens.

EnterpriseAM: How does the office supply-demand balance look?

Abdel Rahman: Demand in Egypt is around 9.5 mn sqm, while supply is 3.2-3.5 mn sqm — a gap of about 6-6.5 mn sqm. By 2029-2030 the gap could shrink to around 4 mn sqm.

EnterpriseAM: What’s your target through 2030?

Abdel Rahman: We announced that over the next 18 months we aim to buy 15-20k sqm. Execution depends on price, asset location, sale terms, and due diligence outcomes.

EnterpriseAM: After the amendments to the Old Rent Law, do you see opportunities in Downtown Cairo, for example?

Abdel Rahman: We’re monitoring developments; once the picture is clearer, we’ll assess the opportunities.

Egypt’s unemployment rate contracts for third consecutive quarter in 2Q 2025 to 6.1%

Unemployment fell by 0.2 percentage points to 6.1% in 2Q 2025 — marking the third straight quarter of decline — down from 6.3% in 1Q 2025, according to data from state statistics agency Capmas. The figure also comes 0.4 percentage points lower than the 6.5% recorded in 2Q 2024.

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Labor force growth drove the improvement: The labor force expanded 0.5% q-o-q to 33.6 mn people, as the number of employed individuals rose by 223k and the number of those unemployed fell by 57k.

The gender gap persists: Male unemployment dipped to 3.5% during the period, compared to 3.6% in 1Q 2025 and 4.2% during 2Q 2024. Female unemployment eased to 15.8% from 16.4% in the prior quarter and 17.3% in 2Q 2024.

The young people's struggle for jobs got worse: Those aged 15-29 represented 59.8% of the total unemployed, up from 58.6% during the last quarter. Capmas doesn’t publish a separate youth unemployment rate.

Rural areas continue to outperform: Urban unemployment inched down to 9.7% from 9.8% in 1Q 2025 and from 10.0% in the same period last year. Meanwhile, rural unemployment fell by 0.3 percentage points to 3.3% from 3.6% in the previous quarter and dropped by 0.5 percentage points y-o-y.

More self-employment, fewer salaried roles: Salaried workers accounted for 68.1% of total employment in 2Q 2025, down 1.6 percentage points q-o-q and 5.5 percentage points y-o-y. Meanwhile, the self-employed made up 23.2%, up 1.2 percentage points q-o-q and 4.1 percentage points y-o-y. This reflects a continuing trend in the labor force composition. In addition, business owners made up 4.0% of those employed, down from 4.3% in 1Q 2025, but up from 3.0% a year earlier, while those working for family businesses rose to 4.7%, from 4.0% in 1Q 2025 and from 4.3% a year ago.

REMEMBER- The unemployment rate excludes working-age people not seeking work. The labor force participation rate — which counts everyone aged 15-64 either in work or actively looking for work — stood at 45.5% in 2Q 2025, compared to 45.8% in 1Q 2025 and 43.4% in 2Q 2024.

Ezdehar acquires majority stake in Kemet for Natural Food

Private equity firm Ezdehar Management has acquired a majority stake in snack manufacturer Kemet for Natural Food through its Ezdehar Mid-Cap Fund II, the firm said in a statement (pdf). The exact size of the stake and the value of the transaction were not disclosed.

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If you aren’t familiar with Kemet: The snack maker is behind two pretzel brands — Pretzo and Mixy. It was founded in Egypt in 1998 and now exports to a wide range of markets across Africa, Europe, Asia, and the Middle East.

What’s next for Kemet? Kemet plans to use Ezdehar’s backing to expand its product portfolio to offer a wider variety of snacks, boost production capacity, and accelerate international distribution to expand its global footprint.

The investor lineup: Ezdehar Mid-Cap Fund II is backed by the European Bank for Reconstruction and Development, the European Investment Bank, British International Investment, the Dutch Entrepreneurial Development Bank, the International Finance Corporation, the Egyptian-American Enterprise Fund, and the Belgian Investment Company for Developing Countries, alongside Egyptian banks and other investment institutions.

What they said: “We're looking forward to being part of the next stage of the company's journey, working closely with the founders and management team. We have full confidence in their ability to drive growth and achieve their ambitious plans through continued product development and innovation,” Managing Director Amir Mishriky said.

ICYMI- Ezdehar had plans to invest up to USD 100 mn in acquisitions this year, focusing on retail, food manufacturing, and technology. The firm allocated up to USD 30 mn for each investment.

IN OTHER M&A NEWS-

#1- The Financial Regulatory Authority (FRA) greenlit the country’s firstSPACacquisition, allowing Qardy and Catalyst Partners shareholders to swap their shares for those of Catalyst Partners’ SPAC Catalyst Partners Middle East (CPME), as part of a capital increase undertaken by CPME, according to an EGX disclosure (pdf). The share swap will be carried out based on exchange ratios set by an independent financial advisor, with CPME acquiring at least 51% of each company’s capital.

The breakdown: Qardy shareholders will be able to exchange each share in the company for 3.9 shares in the CPME, while Catalyst Partners shareholders will be able to swap each share for 32.9 shares in CPME. The period for shareholders to submit exchange requests ends today.

REMEMBER- Catalyst Partners Middle East became Egypt’s first SPAC after receiving the green light from the FRA in September 2024, before listing on the EGX two months later.

#2- International professional services provider Turner & Townsend acquired local construction consultancy company ValueMetric Consultants for an unspecified amount, according to a statement (pdf). The acquisition will help the company expand its quantity surveying and commercial advisory services to Egypt and strengthen its presence in the region.

ValueMetric Consultants Managing Director Ayman El Ghazzawi will lead the newly formed Turner & Townsend Egypt, a move that will see El Ghazzawi return to the company he had worked for 15 years ago in the UK. “In combining our deep expertise in cost management with the strength and capability of Turner & Townsend, we are ensuring that we continue to set the bar high for our clients and their project,” said El Ghazzawi.

Demand is continuing to push prices in Cairo’s rental market upwards

Zamalek continues to rank as Cairo’s most expensive place to rent, with average monthly rental rates increasing 2.5x since 2020 to reach EGP 50k in 2024 for a 100-150 m unfurnished apartment, according to proptech platform Aqarmap’s Egypt Real Estate Trends 2025 report. The report points to Zamalek’s “premium location and high-end demand” as the reason for its high rents.

** In our first deep dive into the report, we looked at how evolving consumer preferences are creating potential for growth and challenges for developers in Egypt. You can check out the story here.

Sheikh Zayed followed behind as the capital’s second most expensive rental location, with monthly rates averaging 27k in 2024, which the report says likely reflects a “growing interest in gated compounds and suburban lifestyle.” The report also noted increases in rental prices in Mohandeseen, New Cairo, Maadi, and Sixth of October, as “inflationary pressures, currency fluctuations, and shifting demand toward more modern, spacious living environments” drove prices up.

The methodology: These insights are based on Aqarmap’s monthly index, which has tracked Egypt’s property demand since 2012. The index uses a proprietary algorithm drawing on data from the Aqarmap platform, search engines, macroeconomic indicators, financial statements, and listed developer performance metrics. It measures demand dynamics and buyer behavior — not price changes.

New Cairo led the market in terms of demand for rentals, followed by Nasr City, Maadi, Heliopolis, Faisal, Mokkatom, El Haram, Sixth of October, Ain Shams, and El Obour. While in terms of property type, the residential market continued to dominate — accounting for 81% of total demand.

Arab, Muslim nations condemn Netanyahu’s remarks supporting Greater Israel

Israeli Prime Minister Benjamin Netanyahu's words in support of a Greater Israel are “a blatant and dangerous violation of the rules of international law and the foundations of stable international relations,” the foreign ministers of 31 Arab and Islamic nations — including our own — alongside the heads of the Arab League, the Organization of Islamic Cooperation, and the Gulf Cooperation Council said in a joint statement.

IN CONTEXT- The joint statement follows Netanyahu's comments last Tuesday where he told Israeli broadcaster i24 that he “very much” feels a connection with the vision of Greater Israel — an expansionist idea of Israel that includes parts of Egypt, Saudi Arabia, Lebanon, Jordan, and Syria.

The joint statement also condemned the West Bank settlement plan, which Israeli Finance Minister Bezalal Smotrich says will “bury the idea of a Palestinian state” by cutting off occupied East Jerusalem.

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Palestine also topped the agenda of Egypt’s Foreign Minister Badr Abdelatty’s calls with his European counterparts over the weekend, speaking with French FM Jean-Noël Barrot, British Foreign Secretary David La mmy, and German FM Johann Wadephul to coordinate efforts to secure a Gaza ceasefire and increase humanitarian access, according to statements. Abdelatty reiterated Egypt’s rejection of settlement expansion and occupation entrenchment, while praising France and the UK’s intention to recognize Palestine as a state, urging a broader recognition drive at the upcoming UN General Assembly in September.

Abdelatty also spoke with EU Commissioner for the Mediterranean Dubravka Šuica and EU foreign policy chief Kaja Kallas to discuss Gaza developments and reiterate Egypt’s stance on the subject. He urged the EU to intensify pressure for a ceasefire and unimpeded humanitarian access, stressing that settlement expansion violates international law and fuels instability.

EFG Holding, Fawry, Palm Hills, Juhayna, GB Corp, Telecom Egypt post 2Q earnings

There’s little doubt that earnings season is in full swing, with a wave of new earnings releases since our last issue of EnterpriseAM. In the issue today are earnings from EFG Holding, Fawry, Palm Hills, Juhayna, GB Corp, and Telecom Egypt.

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

EFG HOLDING’S REVENUES JUMP 21% IN 2Q 2025-

Our friends at EFG Holding saw another good quarter this year, with the group’s topline jumping 21% y-o-y to EGP 6.1 bn in 2Q 2025, while net income inched up 2% y-o-y to EGP 802 mn, according to the company’s latest ear nings release (pdf). Revenue growth outpaced cost increases, with net operating profit rising 19% y-o-y and income before tax up 21% y-o-y, despite total operating expenses climbing 22% to EGP 4.1 bn.

The breakdown:

EFG Hermes: Revenues at the group’s investment bank were flat y-o-y at EGP 2.7 bn, as a strong rebound in holding and treasury activities, a rise in brokerage revenues, and buy side activities — up collectively 131% y-o-y — helped offset “a sharp decline in investment banking revenues due to a high base in 2Q 24.” Net income after tax and minority interest fell 11% y-o-y to EGP 268 mn.

EFG Finance: EFG Holding’s NBFI arm saw its revenues surge 66% y-o-y to EGP 1.8 bn — led by a 71% y-o-y jump in recently listed Valu ’s topline — on securitization gains and higher fees, alongside strong growth at Tanmeyah and Corp Solutions. EFG Finance’s operating expenses rose 82% y-o-y to EGP 1.2 bn on inflation-driven higher expenses, higher provisions, and one-off listing costs, pulling net income after tax interest down 14% y-o-y to EGP 230 mn.

Bank NXT: The group’s commercial bank saw its topline grow by 30% y-o-y to EGP 1.6 bn on higher net interest income and interest-earning assets. Operating expenses rose 23% y-o-y to EGP 694 mn, partly offset by a 27% drop in provisions AND ECL. Net income for the lender after tax increased 39% y-o-y to EGP 594 mn, with EFG Holding’s share standing at EGP 304 mn.

On a 1H basis, a strong period the year before and previous FX gains brought revenues down 14% y-o-y to EGP 11.7 bn, which the release says “reflects a normalization relative to the exceptionally strong comparable period that included strong FX gains and unrealized gains on investments/seed capital, due to the significant EGP devaluation in March 2024.” Net income was down 23% y-o-y during the same period to EGP 2.0 bn. However, excluding FX gains, EFG Holding’s revenues are up 29% y-o-y.

What they said: “Our second quarter results demonstrate the continued resilience and strength with which EFG Holding operates, supported by its diversified platform and strong geographic footprint,” Group CEO Karim Awad said in an accompanying statement (pdf). “The period’s financial results highlight the standout performance of EFG Finance, driven by Valu and Bank NXT.”

FAWRY’S NET INCOME MORE THAN DOUBLES IN 2Q-

EGX-listed fintech giant Fawry saw its net income after minority interest jump 102.6% y-o-y in 2Q 2025 to EGP 651.6 mn, according to the company’s latest earnings release (pdf). Revenues rose 62.6% y-o-y during the quarter to EGP 2.0 bn, driven by strong performances across all of its business segments.

Its financial services segment more than doubled its revenues, jumping 176.3% y-o-y to EGP 562.3 mn, and contributed nearly half of the quarter’s total revenue growth. Banking services revenues climbed 54.3% y-o-y to EGP 733.4 mn, fueled by a 73.0% rise in acceptance and a 33.9% increase in agent banking . The alternative digital payments segment recorded revenues of EGP 505.7 mn, up 23.3% y-o-y, while supply chain solutions revenues rose 41.5% y-o-y to EGP 119.5 mn.

In 1H 2025, Fawry’s revenues rose 63.8% y-o-y to EGP 3.8 bn, while net income after minority interest almost doubled, rising 99.9% y-o-y to EGP 1.3 bn. The company’s loan portfolio grew 121% y-o-y to EGP 3.9 bn, while value rose 57.6% y-o-y to EGP 385.9 bn.

What they said: “Fawry has continued its upward trajectory, achieving substantial operational and financial growth, and making significant progress on our long-term value creation and revenue diversification,” CEO Ashraf Sabry said.

Looking ahead: Management plans to further expand neobanking and BNPL offerings, monetize technology platforms, and leverage AI for personalized customer experiences, credit scoring, and fraud detection. The company also expects its recently acquired Islamic financing license to help grow Sharia-compliant lending products.

JUHAYNA REPORTS RECORD REVENUES IN 2Q 2025-

Dairy giant Juhayna posted record-high revenues of EGP 7.4 bn in 2Q 2025, up 22% y-o-y, driven by strong local sales and robust exports of finished goods, according to its latest earnings release (pdf). Net income for the same period fell 52% y-o-y to EGP 481.5 mn during the quarter, reflecting the anticipated normalization of concentrate prices from last year’s exceptional highs and higher interest expenses tied to ongoing CAPEX commitments.

Dairy revenues rose 39% y-o-y in the quarter to EGP 3.6 bn, fermented products were up 37% to EGP 1.6 bn, and juice revenues grew 29% to EGP 1.5 bn. Concentrates and agri revenues fell 45% y-o-y to EGP 568 mn on weaker global concentrate prices.

On a 1H basis, Revenues rose 23% y-o-y to EGP 14.2 bn, fueled by double-digit volume growth across dairy, fermented, and juice segments alongside single-digit price adjustments. Net income came in at EGP 1.1 bn, down 24% y-o-y. The company’s exports reached EGP 1.3 bn in the six-month period, with finished product export sales in USD terms up 47% y-o-y, helping cushion lower concentrate revenues.

GB CORP REVENUES, INCOME SURGE IN 2Q 2025-

GB Corp’s revenues jumped 87.6% y-o-y to EGP 19.1 bn in 2Q 2025, according to its latest earnings release (pdf). The group’s net income rose 148.0% y-o-y during the same period to EGP 1.0 bn.

GB Auto’s revenues helped drive growth overall, rising 84.3% y-o-y in the quarter to EGP 16.2 bn, with net income more than doubling to EGP 531.3 mn, driven by stronger performance and sales across all its business segments. GB Capital’s revenues — before intercompany eliminations — increased 116.4% y-o-y to EGP 3.1 bn, while net income rose 195.6% y-o-y to EGP 512.9 mn, driven by “improved macroeconomic conditions and further supported by the continued expansion of the company's portfolio of alternative financing solutions.” The NBFS arm’s loan portfolio reached EGP 17.9 bn, up 70.1% y-o-y, with a non-performing loan ratio of 1.9%.

In the first half of 2025, revenues rose 86.9% y-o-y to EGP 35.9 bn, while net income was up 59.6% y-o-y to EGP 1.7 bn, “driven by solid growth across both the auto and capital segments.” GB Auto brought in EGP 30.7 bn in revenues, up 86.5% y-o-y, and GB Capital’s revenues rose 93.4% y-o-y to EGP 5.6 bn.

What they said: “The first half of 2025 was a period of significant progress for GB Corp as we delivered strong revenue and earnings growth, while advancing key strategic priorities across our auto and capital segments,” CEO Nader Ghabbour said. “Looking ahead, we see strong demand fundamentals supported by lower interest rates, stable FX markets, and improved consumer sentiment.”

TELECOM EGYPT’S TOP AND BOTTOM LINES ROSE IN 2Q-

Telecom Egypt’s net income jumped 123% y-o-y in 2Q 2025 to EGP 5.9 bn, according to its latest earnings release (pdf ). The company’s top line rose 26% y-o-y to EGP 25.8 bn during the quarter, driven by a 38% y-o-y rise in retail revenues, a 12% increase in wholesale revenues fueled by a 33% rise in international incoming calls.

An even better 1H 2025: Net income for the six month period grew 61% to EGP 10.5 bn. Revenues for the period rose 33% y-o-y to EGP 50.6 bn, led by a 47% surge in data revenue and a 50% rise in international incoming calls.

What they said:“Looking ahead, we will continue investing in our robust network infrastructure while maintaining a focus on financial and operational excellence. Our priorities remain to strengthen our core business, drive sustainable profitability, and create long-term value for our shareholders,” said CEO Mohamed Nasr.

PALM HILLS’ NET INCOME UP 29% IN 2Q-

Palm Hills Developments’ revenues rose 52.6% y-o-y to EGP 7.2 bn in 2Q 2025, according to its latest earni ngs release (pdf). The developer’s net income increased 28.8% y-o-y to EGP 903 mn during the same period.

On a 1H basis, revenues for 1H 2025 increased 42.2% y-o-y to EGP 15.6 bn, while net income after tax and minority interest rose 43% to EGP 2.4 bn. Supporting the increase in the company’s top and bottom lines were a 118.0% y-o-y increase in new sales — which it says came from demand for its existing inventory — and backlog recognition.

Over 60 Egyptian players want to set up a joint marketing firm in Ghana

TRADE-

More than 60 Egyptian companies spanning multiple sectors are looking to set up a joint marketing firm in Ghana, with the aim of tripling Egypt’s exports to the West African country by the end of 2026, Chemical and Fertilizers Export Council head Khaled Abou El Makarem told Al Arabiya. The venture will promote a broad range of Egyptian products while potentially targeting other West African markets.

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

Two consulting firms, one in Egypt and another in Ghana, have been tapped to conduct a market study to mark the best-fit sectors and products for the new entity, with findings expected in the coming weeks. Abou El Makarem said Ghana is “a very promising market” with an appetite for competitively priced Egyptian consumer goods, plastics, and paints, among other products.

INVESTMENT WATCH-

Cairo Capital Securities is set to open subscriptions for the first issuance of its newly launched Nile Fund for Industrial Investment in early 4Q 2025, Chief Investment Officer Shady Sharaf told Amwal Al Ghad. The country’s first industry-focused private equity vehicle targets EGP 2.5 bn in commitments as part of a planned four-issuance program worth EGP 10 bn, Sharaf added. Around 70% of proceeds from the first issuance are expected to be deployed by the end of 2026.

The fund will invest in minority stakes of 20-40% in industrial companies across the manufacturing, chemicals, food, and pharma sectors, with two acquisitions out of a 12-transaction pipeline set to close before year-end. Cairo Capital currently manages EGP 3 bn in assets across five investment funds and portfolios and aims to more than double its AUM to EGP 7.5 bn by 2026. There are no updates about the listing of the fund on the EGX, which was first announced in July.

NBFS-

The Financial Regulatory Authority (FRA) introduced Basel III-aligned solvency standards for non-banking financial services, the authority said in a statement. The update aims to strengthen the financial stability of companies by enhancing their ability to manage credit, operational, and market risks. Key changes include implementing a risk margin and countercyclical margin to better absorb economic shocks, revising operational risk calculations to cover the entire income statement, and adjusting short- and long-term liquidity ratios.

Companies must begin a pilot application of these new standards on 1 January 2026, with full implementation scheduled for 1 January 2027. The FRA's stated goal is to create a more resilient non-banking financial sector, ensuring it can support the national economy and withstand future challenges.

DEBT-

IFC lends USD 50 mn to Suez Canal Bank: The International Finance Corporation (IFC) has approved a USD 50 mn loan to Suez Canal Bank to expand lending to MSMEs, with a focus on women-owned businesses, according to a disclosure on the IFC’s website. The five-year loan will be supported by the IFC’s Blended Finance Facility for Refugees and includes a USD 10 mn trade guarantee under the IFC’s Global Trade Finance Program.

GCC’s assets under management rose 9% y-o-y in 2024, with the UAE and KSA leading growth

The GCC’s asset management industry grew its assets under management (AUM) to USD 2.2 tn in 2024, up 9% from the previous year, according to a statement from Boston Consulting Group (BCG). Retail mutual fund growth was led by Saudi Arabia and the UAE, while sovereign wealth funds in Kuwait and Abu Dhabi accounted for the largest institutional volumes.

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

It’s a good time to be an asset manager in the region: “With Saudi Arabia and the UAE anchoring regional momentum, the GCC’s strategic diversification and SWF dominance signal a future where local asset managers could rival global giants,” said Lukasz Rey, Middle East head of financial institutions at BCG. “Recent market volatility offers a chance for change, prompting asset managers to move from recovery to innovation — reimagining value delivery, client engagement, and business operations,” he added.

How can GCC asset managers become the next industry giants? By being at the forefront of the shift towards more client-centric, technologically advanced, and leaner business models, Mohammad Khan, managing director and partner at BCG, said.

Globally, the asset management industry’s total AUM hit USD 128 tn in 2024, up 12% y-o-y, extending the rebound from the 2022 downturn, according to BCG’s latest Global Asset Management report (pdf). Global revenues rose USD 58 bn in 2024, with USD 42 bn from market performance and USD 16 bn from net inflows. More than 70% of global revenue growth came from market performance, as major indices like the S&P 500 and Nasdaq rallied, but half of the growth was offset by fee compression and the shift to lower-cost products.

Active funds saw USD 0.1 tn in global outflows in 2024, while passive products drew USD 1.6 tn in inflows, as passive funds continue to gain popularity. Heavy redemptions from North America — USD 337 bn — were large enough to push worldwide active fund flows into negative territory despite inflows in every other region.

Fixed-income funds attracted USD 700 bn globally, while active ETFs booked USD 325 bn in inflows, nearly USD 300 bn of which came from North America. Active ETF AUM has expanded at a 39% CAGR over the past decade, with actively managed products accounting for 44% of all ETF launches in 2024.

EGX30	35,576	-0.8% (YTD: +19.6%)
USD (CBE)	Buy 48.24	Sell 48.36
USD (CIB)	Buy 48.26	Sell 48.36
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	10,834	+0.7% (YTD: -10.3%)
ADX	10,223	-0.3% (YTD: +8.5%)
DFM	6,126	+0.5% (YTD: +18.8%)
S&P 500	6,450	-0.3% (YTD: +9.7%)
FTSE 100	9,139	-0.4% (YTD: +11.8%)
Euro Stoxx 50	5,449	+0.3% (YTD: +11.3%)
Brent crude	USD 65.85	-1.5%
Natural gas (Nymex)	USD 2.92	+2.6%
Gold	USD 3,382	0.0%
BTC	USD 117,333	-0.4% (YTD: +25.4%)
S&P Egypt Sovereign Bond Index	892.64	+0.1% (YTD: +14.8%)
S&P MENA Bond & Sukuk	148.24	-0.1% (YTD: +5.9%)
VIX (Volatility Index)	15.09	+1.8% (YTD: -13.0%)

THE CLOSING BELL-

The EGX30 fell 0.8% at Thursday’s close on turnover of EGP 3.6 bn (30.1% below the 90-day average). International investors were the sole net buyers. The index is up 19.6% YTD.

In the green: Arabian Cement (+4.7%), GB Corp (+1.9%), and Orascom Development (+1.4%).

In the red: Qalaa Holdings (-2.8%), Beltone Holding (-2.6%), and Madinet Masr (-1.6%).

CALENDAR

AUGUST

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

1 October (Wednesday): Applications for alternative housing for old rent tenants will open through an online platform or at post offices nationwide.

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

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

7-8 October (Tuesday-Wednesday): HACE-Hotel Expo, Egypt International Exhibitions Center.

7-9 October (Tuesday-Thursday): EgyMedica Exhibition, Cairo International Convention Center.

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.

Mid-October: Capmas to publish the findings of its 2023-2024 income and expenditure survey.

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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