Package of wage, pension hikes to come into effect in July

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What We're Tracking Today

Demand for gold bars and coins in Egypt fell 21% y-o-y in 2024

Good morning, all. We have another packed issue to close out one particularly hectic week. Over the past 24 hours we saw Madbouly give us a timeline for the anticipated package of wage and pension hikes, the CBE and AMIC announce December’s net foreign reserves and auto sales data, respectively, and Elsewedy Electric launch the region’s biggest telecom cables factory.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 17°C and a low of 11°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 17°C and a low of 12°C.

And over the weekend, expect to see a high of 18°C and a low of 10°C in the capital.

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

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WATCH THIS SPACE-

Aviation Minister talks investment with UK firms: Civil Aviation Minister Sameh Elhefny met with senior officials from British financial institutions, including HSBC UK, Standard Chartered, and UK Export Finance, to discuss cooperation and investments in Egypt’s aviation industry, according to a ministry statement. The talks focused on potential projects to enhance infrastructure, develop aircraft fleets, and expand airport capacity.

CAPITAL MARKETS-

The world’s largest sovereign wealth fund Norway’s Pension Fund Global held USD 100.3 mn worth of stocks in 11 EGX-listed companies as of 31 December 2024, according to our calculations based on the fund’s holdings of equities as of December 2024 report (pdf).

This marks a 26% drop in value from USD 134.7 mn on 31 December 2023 (pdf), likely due to the depreciation of the EGP. The fund’s biggest equity position in Egypt is in fintech outfit Fawry at 4.1%, followed by CIRA Education at 3.1%, and Taaleem Management Services at 3.0%.

HAPPENING TODAY-

Egypt International Boat Show, ahoy: Boat and yacht companies from across the globe are in Cairo for the first day of the Egypt International Boat Show at the Cairo International Convention Centre. With both boating enthusiasts and those in the industry in mind, the event, which wraps up on Sunday, will host discussions about the industry and showcase the latest luxury yachts. You can register to attend the event on its website.

DATA POINT-

Demand for gold bars and coins in Egypt fell 21% y-o-y in 2024, hitting 24 tons as savers increasingly looked away from the safe-haven asset, according to the World Gold Council’s gold demand trend report for last year. During the same period, Egyptian purchases of gold jewelry fell 2% y-o-y to 26.1 tons.

THE BIG STORY ABROAD-

For the second morning running, the foreign pages are all about Trump’s proposal for Gaza’s future, which was met with a strong stance from international leaders.

Calls of permanently displacing Gazans sparked a strong international outcry, with UN Secretary General Antonio Guterres calling for adherence to international law and avoiding “any form of ethnic cleansing.” Meanwhile, German Foreign Minister Annalena Baerbock warned the plan would “lead to new suffering and new hatred.”

Damage control: Trump’s aides scrambled to walk back the most controversial elements of his proposal, stating he did not commit to deploying US troops in Gaza and clarifying a resettlement would be temporary to pave the way for reconstruction efforts and that the US will not pay the bills. (Bloomberg | New York Times | FT)

AND IN THE BUSINESS PAGES- Beijing filed a World Trade Organization complaint against “protectionist” 10% tariffs on Chinese imports. Trump had said earlier he was in “no hurry” to speak with President Xi Jinping.

ALSO- It’s not looking good for Nissan + Honda: Negotiations over the USD 60 bn anticipated merger — that would have created the world’s third-biggest automaker — have reportedly hit a wall. One major sticking point was Honda wanting a bigger piece of the holding company, with Nissan becoming a subsidiary — a plan the latter rejected as it opted for a merger of equals. (Reuters | New York Times | WSJ)

Somabay proudly hosts the World Aquatics Open Water World Cup for the third consecutive year, reinforcing its status as a top watersports destination. The training camp will run from 18-22 February at Somabay’s state-of-the-art OneFlow Aquatics Centre, preparing athletes from 21 countries for the competition. From 21-22 February, they will compete in three races, further cementing Somabay’s appeal for international swimming events.

Egypt’s new social protection package to come into effect in July — announcement to come within days

We’ll officially know the ins and outs of the new social protection package “within days,” Prime Minister Moustafa Madbouly said during his weekly presser (watch, runtime: 19:57) yesterday. The package of minimum wage hikes and pension increases will come into effect starting the next fiscal year, which starts in July, he added.

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As things stand: The package is undergoing discussions and will be presented to President Abdel Fattah El Sisi once it's finalized, Madbouly said. “We hope to announce it within the coming days,” he continued.

What we know about the package: The government is planning to raise the minimum wage for civil servants and workers at state-owned enterprises by EGP 1.5k to EGP 7.5k, a senior government source told EnterpriseAM yesterday. This is higher than the previously reported incoming increase that suggested a new minimum wage of EGP 7k. The government will also raise the exceptional cost of living allowance to EGP 1k, with an increase of EGP 600 for special cadres, including doctors and teachers, the source said.

Some 13 mn pensioners could also receive a 15% pension increase, our source confirmed. The package could also see the addition of 500k families to the Takaful and Karama social safety program, prioritizing those most vulnerable, and an increase in the personal income tax exemption threshold to EGP 65k — up from EGP 60k previously — while keeping other income brackets unchanged, the source added.

The government is required to do this under its agreement with the IMF, but the government will try to push to extend timelines to not "exacerbate the resulting inflationary burdens,” Al Ahly Pharos Senior Economist Esraa Ahmed told EnterpriseAM. But whether or not the IMF agrees to push deadlines to completely turn off the tap for certain subsidies the government will still need to “implement certain social protection measures simultaneously or even proactively,” according to Ahmed.

ALSO FROM MADBOULY’S PRESSER-

A new energy find in the Mediterranean: Energy giant BP has made a fresh discovery off the North Coast in its King Mariout offshore concession, with initial reports suggesting the site could yield both gas and oil. More data is expected soon, but officials believe this could be the first of several finds in the area, Madbouly said.

Remember: Egypt awarded BP an offshore exploration block in the concession back in 2022, giving it 100% of the exploration rights for the area.

AND- The government is looking to see exports growing at an annual rate of 15-20% to achieve a trade surplus before 2030, Madbouly said, pointing to agriculture exports, which hit a record USD 10.6 bn last year.

Egypt’s foreign reserves inch up USD 156 mn in January to USD 47.3 bn

Net foreign reserves inched up to USD 47.3 bn at the end of January 2025, marking a USD 156 mn increase from December, according to data from the Central Bank of Egypt. Net foreign reserves continue to increase month on month for the 29th consecutive month.

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

FX reserves decreased by USD 615 mn to USD 35.8 bn in January, down from USD 36.4 bn in December.
Gold reserves rose USD 772 mn to USD 11.4 bn, up from USD 10.6 bn
Special drawing rights remained unchanged at USD 31 mn

SOUND SMART- Special drawing rights — also known as SDRs — are international reserve assets created by the IMF. While not a currency, they are a form of international money that can be used by countries to supplement their official reserves. They are primarily used for IMF transactions, such as repaying loans or increasing quotas.

Egypt’s net foreign reserves have increased by around USD 12 bn since the government announced the USD 35 bn Ras El Hekma agreement, which was followed by the float of the EGP and FX liquidity returning to the official banking system, paving the way for more international funds. Last February — the month immediately before the float — foreign reserves stood at USD 35.3 bn.

Egypt’s net foreign assets dropped 12% to USD 5.2 bn in December

Net foreign assets in Egypt’s banking sector dropped to USD 5.23 bn in December, down from USD 5.96 bn in November, marking a monthly decline of 12.2%, according to data from the Central Bank of Egypt. This follows a sharp drop in November when net foreign assets fell 35.2% due to an increase in demand on FX resources.

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Driving the fall: The decline was driven by a widening deficit in the net foreign assets of commercial banks, which widened to USD 6.4 bn in December, compared to USD 5.8 bn in November. This came on the back of a jump in foreign liabilities in commercial banks, which came in at USD 29.6 bn.

We have an idea why: There’s plenty of local seasonal factors including — but not limited to — Egypt always has a massive import bill kicking in two or three months ahead of Ramadan. Another factor is the companies that usually look to acquire FX in December so they can pay it out in dividends to foreign investors as the year comes to a close. Businesses also look to build up their FX stock during the period as a way to manage FX losses or gains and prepare for the expenses that come with the new year. The end of the year also usually sees an uptick in those traveling abroad — in a country of 110 mn people, there’s 5-6 mn that qualify as wealthy who often take an end-of-year vacation and rely on FX to pay for hotels, meals, etc…

Over at the central bank: The Central Bank of Egypt recorded a net foreign asset surplus of USD 11.7 bn in December — a slight dip from the USD 11.8 bn recorded in November. Foreign assets inched up to USD 45.76 bn, but it wasn’t enough to offset a rise in foreign liabilities which rose to USD 34.1 bn.

The country’s net foreign asset surplus has shrunk 63% since its May 2024 peak of USD 14.3 bn, while commercial banks have now clocked in their fifth consecutive month recording a net foreign asset deficit.

Remember: The May peak marked the first time that net foreign assets recorded a surplus in over two years, which followed the second and final tranche of the USD 35 bn Ras El Hekma agreement bringing in some USD 14 bn of fresh inflows. Before this, the country’s net foreign asset position had been in a deficit since February 2022, when the Russian invasion of Ukraine triggered a shock capital outflow of almost USD 20 bn.

Elsewedy Electric launches the largest telecom cables factory in the Middle East

EGX-listed manufacturer Elsewedy Electric opened a EGP 2 bn cable factory at its subsidiary Elsewedy Industrial Development’s Industria zone in the Tenth of Ramadan, a move which further cements the country’s efforts to localize its telecommunications components, according to a statement from the Industry Ministry and one from the company. The 70k sqm factory stands as the largest of its kind in the region.

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By the numbers: The factory will have a production capacity of 4 mn km of fiber-optic cables and 200k km of copper communication cables — including network cables, telephone cables, coaxial cables, and accessories for both copper and fiber-optic networks, in addition to communication racks and cabinets. The project is set to create 1k jobs in the first phase.

The project will see 50% of its production earmarked for export, including to Europe, Africa, and Gulf countries. The Egyptian Accreditation Council will certify the factory’s facilities so its products can more easily be exported, Industry and Transport Minister Kamel El Wazir said.

If you didn’t know already, wires and cables make up the lion’s share of Elsewedy Electric’s revenues, with the segment making up 61%of its total revenues during 3Q 2024.

Eva Pharma inks technology transfer agreement to produce mRNA vaccines

Egypt is set to become the first Arab and African country to produce mRNA vaccines, after Eva Pharma signed an MoU with France’s DNA Script and Belgian Quantoom Biosciences to secure the transfer of critical technology necessary to manufacture the vaccine, according to a statement from Eva Pharma and another (pdf) seen by EnterpriseAM.

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What we know: The agreement will enable Eva Pharma to integrate the latest vaccine production technology into the drug manufacturing process, allowing it to produce up to 100 mn doses per year of mRNA vaccines at a faster pace and lower cost. The project is expected to come online in 2026, with the production to cover local demand first with any excess production earmarked for export.

mRNA vaccines? When applied to vaccines, mRNA are molecules that carry critical information for the production of harmless virus-like proteins — helping prepare our immune systems to produce antibodies that can fight off the real virus if they ever come into contact with it. The technology was widely developed and tested during the covid pandemic.

The new tech could have significant implications for our vaccine industry: Eva Pharma CEO Riad Armanious referred to the event as a “revolution” for Egypt’s vaccine industry, noting that once the technology transfer is complete, Egypt will be able to produce vaccines for any virus — existing or future — without the need for costly sub-zero storage.

It’s been a busy couple of months for Eva: The company became the first player to locally produce insulin glargine in December, with a new production line expected to move Egypt from importing 6 mn doses annually to exporting 74 mn doses.

All part of our vaccine localization plans: The government has said that it is planning to localize 50% of all vaccine production by 2030, with further efforts to push the figure to 75% by 2035 and reach self-sufficiency by 2040. In the long-term, the sector aims to boost exports to African markets and secure long-term supply agreements, supported by tax exemptions and other incentives.

Auto sales record highest figure in over two years in December

The auto market ended 2024 on a high note, with December vehicle sales rising 19.7% m-o-m to around 13k vehicles, up from 10.8k in November, according to figures from the Automotive Marketing Information Council (AMIC) seen by EnterpriseAM. December’s sales mark the highest monthly sales volume seen since August 2022 and marks a continued rebound in vehicle sales on a monthly basis that began last October.

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Driving the growth: Bus sales saw the sharpest m-o-m increase in December, rising 27.6% m-o-m to 952 units. The passenger cars segment also saw notable growth, with a 24.8% m-o-m jump in vehicles sold to 10.6k units. Truck sales, however, took a hit falling 11.2% to 1.4k units.

On a yearly basis: Total auto sales in December were up 24.6% from the same period last year, with all three segments seeing growth. Passenger car sales were up 26.8% y-o-y, bus sales increased by 20.8% y-o-y, and truck sales saw a 12.4% y-o-y increase.

All in all, it was a pretty solid year for Egypt’s auto market: The total sales volume for the entire year grew 13.2% y-o-y with some 102.2k vehicles sold. Passenger car sales grew 18% y-o-y and truck sales were up 5.2% y-o-y. Bus sales were down, falling 12.7% y-o-y.

We have an idea why: Last year saw the auto market catch its breath after a turbulent period triggered by an FX crunch that limited supply in the market and gave distributors leverage to hike prices as they pleased. This changed following the float of the EGP in March. The market has been in rebound since March 2024, when it saw sales plummet to just 4.2k vehicles — the lowest number of auto sales we’ve seen since we started keeping track in January 2019.

The market leaders: Nissan held the largest market share of Egypt’s auto market last year, with a 15.9% share. Chery-Ghabbour came in second with a 13.4% share and Chevrolet followed with a 12.2% share. Rounding out the top ten were Hyundai, Toyota, MG, BYD, Mitsubishi, Kia, and Ranualt.

The figures don’t quite tell the whole story: AMIC figures reflect data contributed by member distributors, who include most, but not all, industry participants.

EBRD, FinMin to set up EUR 10 mn fund to support PPPs

EUR 10 mn in PPP support? The European Bank for Reconstruction and Development (EBRD) the Finance Ministry inked a cooperation agreement that will see them set up a EUR 10 mn fund — dubbed the Egypt Account — to finance feasibility studies and advisory services for projects being set up under the public-private partnership model, according to a cabinet statement.

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More than just financing: The fund will make it easier for the Madbouly government to launch more than one PPP project at the same time and speed up the process of tapping consultants for projects — they will now be selected in no more than six weeks, Finance Minister Ahmed Kouchouk said.

What does it mean for investors? The Egypt Account will help cut down the period it takes for investors to secure the needed financing to carry out feasibility studies for PPPs — they can now secure the needed funding in just two months. The process used to take up to a year. All in all, the fund will help boost local and foreign investments through the PPP model.

DATA POINT- The government signed 10 PPP contracts in 2024, with combined investments of EGP 19.8 bn, across a variety of sectors — waste recycling, dry ports, sanitation, technical education, and more.

And there’s more to come: Nine other PPP projects, worth a combined EGP 53.9 bn, are currently being offered to investors. The projects include water desalination, transformer stations and technical schools, Kouchouk added.

It doesn’t stop there: Kouchouk also noted that there are another 10 PPPs totalling EGP 37 bn in the preparation phase. These projects include transformer stations, electricity distribution, and industrial drainage.

The big picture: The government plans to increase the private sector’s contribution to the overall economy to more than 65% of total investments over the coming couple of years.

More support from the EBRD: The multilateral lender will also provide the government with technical support — in the form of capacity building and institutional support — in developing PPP projects under an MoU inked between the two sides. The EBRD will also help the Madbouly government prepare and implement projects carried out under the PPP model.

Priority sectors: While the support will cover projects across all sectors, four sectors were named as priority sectors — transportation, healthcare, energy, and water treatment and desalination.

REMEMBER- The EBRD is one of the largest development finance institutions supporting the country’s private sector — 98% of the lender's total investments in the country last year went to the private sector. It spent some EUR 1.5 bn across 26 projects, half of which in green finance.

CIRCLE YOUR CALENDAR- Egypt will host the EBRD’s annual meetings in 2027 after receiving approval from the bank’s board.

Cabinet signs off on new oil and gas agreements and more

It was a busy Wednesday at the cabinet: The ministers spent yesterday greenlighting a bunch of draft decisions and agreements across a variety of sectors, according to a cabinet statement.

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#1- Fresh energy agreements: The cabinet approved five concession agreements that will see no less than USD 225.3 mn invested to drill at least 40 wells in areas including the Eastern and Western Deserts.

The players: The Egyptian General Petroleum Corporation, Egyptian Natural Gas Holding Company, South Valley Egyptian Petroleum Holding Company (Ganope), and a number of undisclosed international oil companies.

#2- Three new logistic zones in the pipeline: The ministers also passed a draft presidential decree allocating land plots in Qena, Matrouh, and Toshka to the General Authority for Land and Dry Ports to set up logistics zones.

#3- Expanding Safaga Port: The cabinet approved a draft presidential decree allocating state-owned plots in the Red Sea Governorate to the General Authority for Red Sea Ports to carry out planned expansions to Safaga Port. The expansion includes a new multipurpose container terminal and a logistics zone.

#4- A move to make Egypt greener: The cabinet also passed a draft decision extending the Extended Producer Responsibility — a policy that makes producers fully responsible for their products throughout their entire lifecycle — to plastic shopping bags. The draft decision will require manufacturers and importers of plastic shopping bags to track their sales through the National System for Waste Information and Data Management and enhance safe disposal methods. The draft decision will also introduce incentives for importing and producing eco-friendly alternatives.

Al Tamim & Company is the Regional Law Firm of the year

Al Tamimi & Company secured its spot as the Regional Law Firm of the Year at the Legal 500 MENA Awards 2025, the company said in a statement (pdf). The legal player additionally picked up other accolades, including Jordan Law Firm of the Year, Qatar Law Firm of the Year, UAE Law Firm of the Year, and Dispute Resolution Firm of the Year. Associates in the firm also received awards, including Khushboo Shahdadpuri (LinkedIn) who received the Construction Leading Associate of the Year title, and Nadine Khaled (LinkedIn) who was named the Employment Leading Associate of the Year.

Helmy, Hamza& Partners, a member firm of Baker & McKenzie International, was named Egypt Firm of the Year. Baker McKenzie Partner Lamyaa Gadelhak (LinkedIn) was named Egypt’s Lawyer of the Year.

AND- Other local legal players had their efforts recognized in the region, with Matouk Bassiouny & Hennawy’s Nadia Abdallah (LinkedIn) receiving the Projects and Infrastructure Leading Associate of the Year title and Riad & Riad’s Eman Riad (LinkedIn) named the Employment Lawyer of the Year.

ALSO- The National Bank of Egypt (NBE) topped Egypt’s syndicated loans league table in 2024, with the state-owned lender claiming first place in the local market for its role as a financing agent, lead arranger, documentation bank, and loan marketer, according to Bloomberg rankings, the bank said in a statement (pdf). NBE managed 32 financing transactions in 2024, including 25 as a loan agent, with a total financing value of EGP 297 bn.

HSBC taps Karim Tannir to head its new MENA, Turkey banking division

HSBC has appointed Karim Tannir as head of the group’s new Middle East, North Africa, and Turkey banking division, Bloomberg writes, citing a staff memo. Tannir joined the bank in 2023 as vice chairman of global banking in the MENAT, after spending 25 years with JPMorgan.

Beltone Venture Capital invests in Moroccan eyewear brand LNKO

INVESTMENT-

Beltone Holding’s Beltone Venture Capital made an undisclosed equity investment in Moroccan eyewear brand LNKO, Beltone said in a statement (pdf). LNKO is present in 24 countries online, has 10 points of sale across Morocco, and has cultivated a customer base of over 100k since it launched four years ago. No details were provided on the size or value of the investment.

What they said: “This equity investment in LNKO marks a key milestone in our African expansion strategy. By partnering with LNKO, we’re backing a visionary company with immense growth potential,” said Beltone Venture Capital CEO Ali Mokhtar.

ENERGY-

#1- ExxonMobil eyes ramping up its Egypt operations: US energy giant ExxonMobil is reportedly planning to dig two new exploratory wells in its Cairo and Masry offshore concessions in 1Q 2026, with an initial investment of USD 240 mn, an unnamed government official told Asharq Business.

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#2- Egypt is reportedly planning to increase crude oil production by 18% y-o-y by the end of the current fiscal year, an unnamed government official told Al Arabiya. The Egyptian General Petroleum Corporation is said to be working with foreign energy companies to increase daily production to 565k barrels per day, up from an average of 475k recorded in the last fiscal year, with about 40% of the targeted increase coming from mature fields undergoing development and the remainder extracted from new wells.

We’re on the right track: Egypt’s production capacity rose by 30k barrels of oil per day during the first quarter of FY 2024-25, Oil Minister Karim Badawi said in October.

DEVELOPMENT FINANCE-

ICD to provide private sector with USD 100 mn under 2025 work plan: The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank, signed Egypt’s work plan for 2025, under which it will provide USD 100 mn in funds to support private sector projects in the country, according to a statement (pdf). The ICD plans to offer financing and support for several economic sectors, all while expanding financial inclusion initiatives, supporting SMEs, and spreading awareness about Islamic financing tools.

M&A-

Amethis acquires majority share in Kazareen Textile: Africa-focused investment fund manager Amethis has acquired a majority stake in textile manufacturer Kazareen Textile Group through its Amethis Fund III, according to a statement. The acquisition will support Kazareen’s expansion plans. While the statement doesn’t disclose the stake acquired, the Egyptian Competition Authority late last year said it greenlit the fund’s request to snap up 56% of the company.

DEFENSE-

The US State Department greenlit USD 929 mn in possible US arms sales to Egypt on Tuesday, Pentagon's Defense Security Cooperation Agency announced earlier this week. The decision paves the way for a possible USD 625 mn contract with Lockheed Martin to upgrade Egypt's fast missile craft and a USD 304 mn contract with Northrop Grumman for its long-range radar technology.

Trump’s tariffs haven’t scared investors away from Chinese stocks just yet

Chinese stocks shake off Trump tariffs, riding the DeepSeek hype: Chinese stocks are holding their ground despite the latest round of US tariffs as optimism over China’s AI sector and expectations of policy support offset the building US-China trade war, Reuters reports. The rally in AI stocks — driven by excitement around Chinese startup DeepSeek’s new low-cost AI model DeepSeek V3 — is fueling investor confidence even as markets continue to digest US President Donald Trump’s 10% tariffs on USD 450 bn worth of Chinese goods.

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Markets are shrugging off trade tensions — at least for now: Trump’s latest trade move, while a clear escalation, was not as aggressive as markets had anticipated. Investors had largely priced in the 10% tariffs, with a stock market rally in Hong Kong this week offering some initial proof. “China’s market will likely overlook the tariff disruptions, as DeepSeek is repairing risk appetite, while investors look forward to more proactive domestic policies,” Kaiyuan Securities Analyst Wei Jixing told Reuters. The expectations that Beijing will roll out fresh stimulus measures, combined with bullish sentiment in AI and electric vehicles, has helped keep market nerves in check.

A mixed bag across stock indices: Aside from some profit-taking, overall declines following Trump’s tariffs were limited. The CSI 300 and Shanghai Composite both dipped around 0.6%, while Hong Kong’s Hang Seng Index lost 0.9% after a strong run. Tech-heavy Chinese stocks listed in Hong Kong climbed more than 4% this week, hitting a three-month high, with the sector’s biggest players rallying nearly 7%. Meanwhile, AI stocks in mainland China surged 3% as investors caught up to Hong Kong’s earlier gains.

PBOC holds firm in currency policy: The People’s Bank of China (PBOC) set the CNY’s daily reference rate at CNY 7.17 against the greenback, its strongest level since November, signaling that Beijing is not rushing to weaken the currency in response to Trump’s tariffs. This contrasts with its response to tariffs slapped on the country during Trump’s first term, when China let the currency slide to offset the impact of tariffs and improve the competitiveness of its exports.

Investors are staying cautious, but no panic yet: With policymakers bracing for prolonged tensions, there’s hope that Trump’s softer-than-expected tariffs and his upcoming talks with Chinese counterpart Xi Jinping could provide room for negotiations. “On the whole, having a trade war is not what the market wants. But investors are less likely to panic this time,” abrdn’s Investment Director Elizabeth Kwik told the newswire.

Investors are also watching closely for any future moves by China’s central bank, as further depreciation could indicate Beijing expects prolonged tensions with Trump and is preparing for a drawn-out trade war.

The news also got ink from Bloomberg.

MARKETS THIS MORNING-

Asian markets are mostly in the green in early trading this morning, with Japan’s Nikkei up 0.2%, Shanghai Composite up 0.2%, and South Korea’s Kospi up 0.6%.

EGX30	29,736	+0.2% (YTD: 0.0%)
USD (CBE)	Buy 50.25	Sell 50.39
USD (CIB)	Buy 50.27	Sell 50.37
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	12,414	-0.2% (YTD: +3.1%)
ADX	9,585	0.0% (YTD: +1.8%)
DFM	5,219	0.0% (YTD: +1.2%)
S&P 500	6,061	+0.4% (YTD: +3.1%)
FTSE 100	8,623	+0.6% (YTD: +5.5%)
Euro Stoxx 50	5,271	+0.1% (YTD: +7.7%)
Brent crude	USD 74.69	-2.0%
Natural gas (Nymex)	USD 3.36	+3.3%
Gold	USD 2,893	+0.6%
BTC	USD 96,541	0.0% (YTD: +3.3%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 3.0 bn (20.4% above the 90-day average). Local investors were the sole net sellers. The index is down 0.02% YTD.

In the green: Juhayna (+1.5%), CIB (+1.2%) and Qalaa Holdings (+1.1%).

In the red: E-finance (-1.4%), Alexandria Container and Cargo Handling (-1.1%) and Rameda (-1.1%).

Bedeir Rizk, CEO of Paragon Developments

Bedeir Rizk, Chief Executive Officer of Paragon Developments: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Bedeir Rizk (LinkedIn), Chief Executive Officer of Paragon Developments.

My name is Bedeir Rizk, and I’m the CEO and co-founder of Paragon Developments. I work in the real estate sector, but my focus is on making it more exciting and human-centric. At Paragon Developments, we’re building a more regenerative ecosystem — one that prioritizes innovation, community, and long-term economic impact. Our goal is to create value not just for the local market, but also for the wider region.

I focus on what we call service leadership — facilitating the work of our management team and ensuring they have the support they need to meet their targets. A large part of my role involves working across internal committees, while also leading business development and identifying new opportunities. At the same time, I manage relationships with our board and investors, balancing both internal and external responsibilities. My work is split into three key areas: investor and board relations, business expansion, and fostering a strong company culture that helps our team members achieve their goals.

Paragon Developments rethinks what a workspace should be. The company’s approach goes beyond just building offices — it’s about creating environments that help people work better and grow within their daily routines. This starts with infrastructure: well-designed buildings that maximize natural lighting, prioritize thermal comfort, and incorporate advanced technical components to enhance efficiency. These elements are key to making workspaces more functional and conducive to productivity.

But infrastructure alone isn’t enough. Paragon sees workspaces as part of a broader ecosystem, one that extends beyond desks and meeting rooms. The company embeds industry-specific communities into its projects — partnering with accelerators and ecosystem providers, creating spaces for arts and culture, and integrating wellness and fitness facilities to foster a more dynamic and connected work environment. The goal is to create spaces that don’t just serve businesses but support the people and industries within them, making work environments more connected, engaging, and dynamic.

The company was founded to address a gap in the real estate market: While office buildings often focus on impressive exteriors, little attention is given to the functionality of the spaces inside. Many offices look modern from the outside but lack thoughtful design that supports the people working in them. Paragon set out to change this by prioritizing user-centric workspaces, focusing on how people interact with their environment rather than just the structure itself.

Another key focus for Paragon has been sustainability and smart building technology. When the company started in 2019, these concepts were gaining traction globally, but the local market had yet to fully embrace them. Seeing the need for more energy-efficient and tech-integrated office spaces, Paragon sought to introduce smarter, more sustainable developments that could better align with evolving industry trends.

I usually wake up between 6 and 7am, thanks to my two young daughters — one is three and the other is two. Mornings start with family time, and I make a point of spending quality time with them before heading to work. Most days, that means taking them out for coffee at 7:30am.

After that, I either fit in a quick workout or head straight to the office. My workday starts with a structured review of tasks, setting priorities for the day ahead. From 11am till 5pm, my schedule is packed with meetings, after which I use the late afternoon to wrap up and organize any remaining tasks before finishing around 7pm.

I stay focused and organized by writing everything down — on paper, on walls, and now, finally, on my iPad, which I only started using properly in 2024. Writing helps me process information and structure my thoughts. A few years ago, we introduced a Google Doc template for every company meeting, and I took notes myself for the first two years to stay engaged. Now, it’s become a habit across the company — every meeting has a shared document with action steps and key takeaways to keep discussions structured and productive.

Another key to staying focused is waking up early. The first few hours of the morning — before the workday officially begins — are some of my most productive. I’ve always been an early riser, even before having kids, but now I wake up before my alarm, which is set for 6:30am but is rarely needed.

The real estate sector is shifting towards mixed-use developments that blur the lines between work, leisure, and living. The traditional model — where offices, malls, and residential areas are distinct entities — is being replaced by integrated environments that cater to changing lifestyles. As remote and hybrid work patterns persist, demand is growing for spaces that offer greater flexibility and convenience, eliminating the rigid separation between professional and personal life.

At the same time, AI is becoming a central force in real estate and workplace design. And a third key trend is the increasing focus on sustainability and property technology (proptech). Developers are incorporating sustainable building materials, including 3D-printed components and recycled materials, while technology is improving property management and accessibility.

On a personal level, I focus on two things — spending quality time with my family and building a social life beyond work. I want to be there for my kids’ first experiences — whether it’s their first snowfall or their first time seeing rain. Creating those moments is a priority. At the same time, I try to avoid the common executive trap of making work my entire social life. To counter that, I organize monthly dinners, booking a table for ten and inviting a mix of people — some I know well, others I’m meeting for the first time. It’s a way to maintain connections and create a space for new conversations outside of work.

Professionally, we’re focused on building a company that operates with global standards while remaining deeply rooted in the region. Our goal is to lead in regenerative development, creating workspaces that add long-term value. If you're a global company looking to expand into the Middle East, we want Paragon to be your first call.

Work-life balance isn’t always sustainable — it’s more about constant juggling than strict separation, especially with technology keeping us connected around the clock. Instead of trying to divide work and personal life, we focus on work-life integration, designing spaces that make it easier to manage both. One example is incorporating nurseries in office buildings, allowing parents to bring their children to work, drop them off, and check in on them during the day. Some days work takes over, other days life does, but the goal is to create environments where people don’t have to choose between the two.

The best piece of advice I ever received came in 2014 while I was working in M&A advisory at KPMG Frankfurt. A partner at the firm, who liked me and meant well, told me to cut my hair because it made me stand out too much in a corporate environment that valued uniformity. At first, I was frustrated, but I understood his perspective. Over time, though, I came to see it differently: rather than toning down what makes you different, you should lean into it. What sets you apart is what makes you valuable.

CALENDAR

FEBRUARY

29 January - 8 February (Wednesday-Saturday): Business Ya Shabab exhibition, Cairo Stadium

6-9 February (Thursday-Sunday): Egypt International Boat Show, Nasr City, Ard El Maared.

8 February (Saturday): TechShift Summit 2025, The Greek Campus Downtown, Cairo

10 February (Monday): The Economic Forum for Industry and Investment.

13-17 February (Thursday-Monday): The 10th Annual Conference of the Businesswomen of Egypt 21 Association, the Arab League HQ, Cairo.

17 February: (Monday): Cypriot President Nikos Christodoulides will visit Egypt to sign agreements to transport Cypriot gas to Egypt to be liquefied and exported.

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

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

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

21-23 February ( Friday-Sunday): The First Arab Fraud Combating Summit.

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

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

Subscription period for Your Home in Egypt initiative opens.

MARCH

Arla Foods’ deadline for Domty acquisition offer

Operation of phase one of the Amotope wind farm

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

7-9 April (Monday-Wednesday): Narrative PR Summit launches 9th edition, Red Sea

7-10 April (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

17 April (Thursday): Monetary Policy Committee’s second meeting.

28-30 April (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

MAY

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

22 May (Thursday): Monetary Policy Committee’s third meeting.

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

JUNE

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

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting.

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum.

July 2025: The first operational trail of Egypt-KSA electricity interconnection line.

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

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

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

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

NOVEMBER

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

DECEMBER

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

December 2025: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

1Q 2025: Eipico’s biopharma plant to begin operations

1Q 2025: Finance Ministry to launch public consultations on its tax policy document

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

Mid-2025: EGX launches sustainability index.

2Q 2025: Financial Regulatory Authority (FRA) to introduce derivatives on the EGX

2Q 2025: Safaga Terminal 2 to start operations

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

1H 2025: EGX launches a sharia-compliant sustainability index.

1H 2025: Digital Financial Identity Company will launch an electronic bank account opening service

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

2027

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

EVENTS WITH NO SET DATE

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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