Policy makers pivot toward growth with 100 bps rate cut as inflation retreats

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WHAT WE’RE TRACKING TODAY

Retail trading of government T-bills and bonds on the secondary market begins today

Hello, and a good morning to you all. As we gear up — or slow down for most companies — for Ramadan, we’re kicking the week off with news that the central bank has officially resumed its easing cycle. The 100 bps rate cut was already anticipated, but what took us by a surprise was a 200 bps trim to the required reserve ratio.

Also catching our attention is the launch of the secondary bond and T-bill market, allowing retail investors to trade sovereign debt as easily as stocks. While over at the Finance Ministry, attention is turning to making full use of the sources of non-tax revenues that aren’t contributing as much to the public purse as you might think.

And in private sector news, Saudi Arabia seems to be the destination of choice, with both Hassan Allam’s Grova Developments and Media Republic becoming just the latest example of local players continuing to expand in the Kingdom.

BUT FIRST- We’re hiring a technology reporter: EnterpriseAM is looking for a tech reporter to own the beat across Egypt, the UAE, Saudi Arabia, and beyond.

This is a reporting job — not a desk job. You’ll be working sources, breaking stories, and writing about trendlines (not just headlines) in our voice and with the authority our readers expect. AI and digital infrastructure are huge features of the beat, but our interests are broad: fintech, telecoms, regulation, SaaS, and the bajillion ways tech is reshaping how businesses operate across the region.

We want someone who can pick up the phone or WhatsApp, get people talking, and turn what they say into stories that senior decision-makers need to read. We also expect you to attend industry events and maintain relationships with PR folks across the industry without selling out. If you’ve got 2-3 years of experience and the hunger to build a beat from the ground up, we want to hear from you. We’re also interested in hearing from veteran reporters. Spoken Arabic is strongly preferred.

The role is based in Cairo, though we’re open to remote for the right candidate. If you’re reading EnterpriseAM, you know what we’re about: a no-BS daily news outlet that tells busy execs, investors, founders, and ambitious people what they need to know about the trends shaping business, economy, finance, regulation, and public policy across our region. We write stories that have impact — about issues that matter — for a global audience of decision-makers.

Do we sound like the type of place where you want work? Send your CV and three clips to jobs@enterpriseamea.com. Also enclose a great cover letter that tells us who you are, what you do, and why you’d be a great fit for this job.

Watch this space

CAPITAL MARKETS — Retail trading of government T-bills and bonds on the secondary market officially begins today, EGX Executive Chairman Islam Azzam told EnterpriseAM. The EGX is launching its new Government Fixed-Income Trading system — with the catchy acronym G-FIT — allowing individuals to directly trade sovereign debt through licensed brokerage firms as easily as they trade stocks. Retail traders were traditionally allowed to do that only through established funds. So far, five brokerages have secured the necessary licenses to offer the service to clients.

The launch coincides with the Central Bank of Egypt’s decision on Thursday to cut its required reserve ratio from 18% to 16%, which Al Ahly Pharos’ Hany Genena said was “extremely interlinked.” This follows IMF-mandated quantitative targets (ceilings) on government lending, which meant that the CBE’s incremental funding to the state has nearly stopped — dropping roughly 95% in 2025, Genena said.

Why this matters: By cutting the reserve requirement, the CBE is releasing liquidity back into the banking system, specifically so banks can absorb the government debt the CBE can no longer fund. Opening G-FIT is the second step, aimed at tapping into “excess funds in pockets” and rotating it out of bank CDs and into the formal debt market.

The release of “bns of EGP” back into the banking system will also help compensate for falling bank profits from Thursday’s cut in the overnight lending rate, former Industrial Development Bank Chairman Maged Fahmy told EnterpriseAM, with short-term deposits in particular facing stuff competition from short-term T-bills in light of less severe penalties for selling before maturity. However, Fahmy added that overall, this will only result in a “limited” withdrawal of bank deposits, but banks may be driven to offer more competitive rates to keep customers from switching to T-bills with higher yields.

“The more you have live trading on bills and bonds, the more you have accurate pricing signals,” Genena told us. “If people are pessimistic about inflation, you’ll find the yields required are very high; if they are happy, the yields are very low.”

What’s next? As high-yield certificates of deposit mature, Genena expects a significant portion of that liquidity to bypass traditional bank products and flow into exchange-traded instruments. Despite the ease of buying T-bills, Genena maintains that we are in an equity bull market. With the EGX30 recently hitting historical acceleration phases, he expects returns on stocks to likely outperform fixed income over the next 12–24 months.

SOCIAL SECURITY — The gov’t is looking to welcome Ramadan with a new social protection package for 5 mn families registered with the Takaful and Karama program, a senior government official told EnterpriseAM. Support will also be given to a number of “priority” holders of ration cards in the form of goods to help keep inflation in check over the holy month, were told. President Abdel Fattah El Sisi also directed that government salaries should be paid out this week ahead of Eid Al Fitr, according to an Ittihadiya statement.

A more comprehensive social package will be introduced starting July as part of the budget for the new fiscal year, which will include increases in wages and pensions, higher allocations for state-funded medical treatment, and increased spending on education and health. The comprehensive package will also include measures to raise the total tax exemption threshold between EGP 80k-100k adjusted for inflation, and an increase in the minimum wage, according to our source.

What’s next? Prime Minister Moustafa Madbouly will announce the full details of the packages later today, we are told.

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Happening today

The central bank and International Finance cooperation are co-hosting a conference on sustainable finance today under the theme Innovating for Resilience: Financing for a Sustainable Future, according to a statement (pdf). The conference is set to bring together senior policymakers, financial institution heads, and private sector leaders to hammer out strategies for integrating climate risk into the national financial system.

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WISH THIS MORNING’S ISSUE was a podcast? We’ve got you. Tap or click here to listen to Morning Drive, a 10-minute version of today’s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.
***

PSA-

WEATHER- You’ve got another excuse to wear one of your summer outfits in Cairo today, with a high of 29°C and a low of 17°C, according to our favorite weather app.

The sun is also out in Alexandria, with a high of 28°C and a low of 16°C.

The big story abroad

US and Europe are still BFFs, Rubio insists: US Secretary of State Marco Rubio said that Washington seeks to preserve a close alliance with Europe in a speech at the Munich Security Conference. Rubio called for a “reinvigorated” partnership with a continent with which it shares “a sacred inheritance, an unbreakable link.”

There was a mixed reaction: Speaking after Rubio, European Commission President Ursula von der Leyen emphasized that, while the transatlantic partnership should not be weakened, Europe must become more independent. Other European diplomats balked at Rubio’s comments, and some highlighted his lack of attention to Russia or Ukraine.

Europe remains spooked by US President Donald Trump’s ambitions to seize control of Greenland, which has drawn the ire of Denmark — under whose influence the island falls.

Policy makers pivot toward growth with 100 bps rate cut as inflation retreats

The Central Bank of Egypt’s Monetary Policy Committee kicked off its first meeting of the year with a cut, lowering key interest rates by 100 bps on the back of growing confidence that inflation is on a sustained downward path, CBE said in a statement (pdf) last Thursday.

The overnight deposit rate now stands at 19.00%, while the lending rate was lowered to 20.00%, with the main operation and discount rates set at 19.50%. Meanwhile, the bank trimmed the required reserve ratio (RRR) — the share of deposits banks must hold at the central bank without earning interest — by 200 bps to 16.00%, injecting more liquidity into the banking system.

The cut fell in line with expectations, with nine out of the eleven analysts polled by EnterpriseAM pencilling in a rate cut, with expectations ranging from a careful 100 bps to a bolder 200 bps. A consensus emerged that the CBE had successfully moved past a crisis management phase, with EG Bank board member Mohamed Abdel Aal even describing the central bank as now operating from a “position of strength” on the back of a more convivial relationship with IMF and ample FX liquidity.

The rationale

Inflation continues to ease and growth remains below potential. Annual headline inflation slowed 0.4 percentage points to 11.9% in January following a 14.2 percentage point drop in the average annual inflation rate between 2024 and 2025 on the back of a broad-based slowdown in price pressures supported by lower food inflation, exchange rate stability, and subdued demand. With disinflation appearing to be on track — and more importantly entrenched — policymakers are understandably more confident of managing to hit the 7% (±2%) target by year-end while also lowering rates.

Moderating growth is also giving the central bank more reasons to cut. Real GDP is estimated to have expanded by 4.9% y-o-y in 4Q 2025, down from 5.3% y-o-y the previous quarter. With output still below full capacity, the central bank sees limited near-term inflationary risks, allowing it to cautiously pivot toward supporting economic activity while maintaining a focus on price stability.

The analysis

Analysts broadly agree that the central bank’s tone has shifted — and the easing cycle is only beginning. Capital Economics’ Senior MENA Economist James Swanston noted a subtle but telling change in language: policymakers now say inflation will “reach” their target, rather than merely “converge toward” it. The firm expects another 600 bps of cuts this year, which would bring the overnight deposit rate down to 13.00%. That view aligns with wider market expectations, where 13 out of 14 economists surveyed by LSEG had anticipated easing, with several — including Capital Economics — correctly calling a 100 bps move.

What stood out to many was the RRR cut. By lowering the ratio by 200 bps, the central bank unlocked bns in liquidity — a step analysts describe as more consequential than the rate cut itself. EG Bank Board Member Mohamed Abdel Aal called it the “stronger and more meaningful signal,” arguing that “cutting rates is an invitation to invest, while cutting the reserve requirement provides the liquidity necessary for that investment.” Economist Hany Abou El Fotouh echoed the view, saying the move reduces funding costs and accelerates the pass-through of easing to businesses and households.

Thndr’s Amr El Alfy said the decision reflects growing confidence that inflation is moving toward the target range, adding that the additional liquidity could lower borrowing costs for businesses and the government while supporting demand for treasury bills. HC Securities’ Head of Equity Research Nemat Choucri described the step as a clear expansionary signal that should lift credit growth, even as policymakers remain mindful of geopolitical risks and fiscal reform commitments.

Others see the combined impact as larger than appears on paper. Hany Genena of Al Ahly Pharos said the move is larger than a mere 100 bps cut “once the liquidity impact of the reserve requirement reduction is factored in.” Banks’ excess liquidity at the central bank has dropped sharply over the past year — from around EGP 1 tn a year ago to EGP 80 bn — limiting room to expand credit. By releasing required reserves, banks can meet lending demand without squeezing profitability, particularly with net interest margins still elevated at around 9% at some institutions, Genena said.

Improving macro conditions have also reinforced confidence. Analysts point to record foreign currency reserves and a return to a net foreign asset surplus as giving policymakers more space to ease without destabilizing markets. Former Banque Misr Vice Chairman Sahar El Damati said slowing inflation opened the door for cuts, adding that lower rates should ease government debt serving costs and support corporate expansion. She expects rates could fall further to 12.00-13.00% by year-end if disinflation continues.

The outlook

Capital Economics’ Swanston expects the central bank to continue cutting rates throughout the year as inflation declines, noting risks to interest rates are “to the downside” if disinflation proceeds faster than expected.

Still, policymakers remain cautious. The CBE said future rate decisions will depend on inflation developments and global and domestic risks, including geopolitical tensions and fiscal reforms, as it balances supporting growth with maintaining price stability.

The end of the road for underperforming non-tax revenues?

The government is preparing a broad overhaul of the non-tax revenue system in a bid to increase collection, a senior government source told EnterpriseAM. While tax revenues have picked up pace — on the back of recent facilitation packages and a simplified regime targeting the informal economy — non-tax revenues are lagging behind.

Why this matters: Despite the government having a large economic footprint through state-owned enterprises, non-tax revenues generate only 12.8% of the state’s total income while tax revenues generate the remaining 87.2%. The problem here isn’t the gap per se — a 90:10 ratio is a sign of a mature and stable economy for countries that aren’t reliant on their resources — the issue is that the mass of non-tax revenue sources, including the Suez Canal Authority, Egyptian General Petroleum Corporation, mining royalties numerous utility authorities, property income, tourism fees, and everything in between, should be generating much more in revenue to the state than they are now.

One immediate fix will be to increase the share of earnings transferred to the Finance Ministry from public sector companies, holding firms, and economic authorities, the source told us. In the first half of the current fiscal year, these transfers totaled EGP 35 bn — a disproportionally low figure given the companies’ strong operating performance, they said. The government has also agreed to claim a larger share of surplus earnings from companies affiliated with or transferred to the Sovereign Fund of Egypt.

The Finance Ministry also intends to bring around 19 economic authorities under the general government budget starting next fiscal year. The move is a tactical step to reduce public debt and strengthen revenues, while offering a clearer and more unified picture of the state’s financial position, the source told us.

What’s next? The upcoming budget will reflect a structural reset in public finances — one designed to create greater fiscal space for government investment, expanding social protection programs, and increasing spending on education and healthcare.

Historic hotels to shift to Sovereign Fund of Egypt

Egypt is moving its most iconic state-owned hotels under the Sovereign Fund of Egypt in a bid to accelerate foreign investment and unlock higher returns from tourism assets, a senior government official tells EnterpriseAM. The assets, currently overseen by the Holding Company for Tourism and the former Public Business Sector Ministry, will be transferred after the ministry was dissolved.

Under the new structure, the Sovereign Fund will take the lead on investment and redevelopment across a string of landmark properties, including the redevelopment of the Nile Ritz-Carlton, the historic InterContinental Cairo Semiramis — which recently secured an Indian partner — Shepheard, Hoteck, Steigenberger El Lessan, Nefertari Abu Simbel, and Four Seasons Luxor, along with other major state-owned hotel brands. Ongoing development and efficiency upgrades will continue uninterrupted, with the focus squarely on maximizing long-term asset value rather than pausing projects, our source tells us.

Why it matters: Centralizing these assets under the fund is expected to speed up investment decisions and make partnerships with foreign and private operators easier to structure, we’re told. The full plan is expected to be finalized before the end of the first half of the year as part of a broader push to strengthen returns on public assets while reinforcing tourism growth and foreign-currency inflows.

Select assets may also be deployed within a broader debt-swap framework to reduce cross-government debt, the source added. The mechanism would see assets exchanged between holding companies and other state entities to reduce accumulated debts and strengthen balance sheets, while advancing restructuring efforts without adding new fiscal burdens.

This isn’t the first time we hear of the government monetizing its hospitality portfolio. The government sold seven historic hotels to Talaat Moustafa Group’s Icon back in 2024, including the Cairo Marriott in Zamalek, Marriott Mena House by the Pyramids, Steigenberger El Tahrir and Steigenberger Cecil, Sofitel Legend Old Cataract in Aswan, Mövenpick Aswan, and Sofitel Winter Palace in Luxor.

Leading the transition: how public–private alignment can break the cash paradox

In the busy markets of Cairo, cash is often treated as the ultimate truth: simple, immediate, and seemingly free. Yet, for the Egyptian SME, this “free” currency carries a heavy, invisible tax. While the government’s Vision 2030 has laid the digital tracks, many merchants remain parked at the station, not because they lack the tech, but because they are waiting for a reason to move. It is important to reframe digitization not as an administrative requirement but as a gateway to growth and formal economic participation.

The real paradox is that while cash feels like autonomy, it is a glass ceiling. It keeps a business “invisible,” cutting it off from the oxygen of formal credit and global supply chains. A digital footprint isn’t just a record of a sale; it’s a living reputation. By trading the ledger book for the digital rail, a micro-merchant transforms from an isolated stall into a bankable enterprise, gaining the kind of growth insights and financial leverage that paper simply cannot provide. For SMEs, each digital transaction helps create a verifiable financial identity that enables access to credit, supplier financing, and participation in formal value chains, advantages unavailable to cash-based businesses.

Unlocking this potential requires a sophisticated dance between policy and platform.
The government’s targeted incentives, such as tax-neutral grace periods or simplified digital onboarding, create the momentum for merchants to enter the digital economy – the “pull factor.” Visa provides the “push” through its global data infrastructure and alternative scoring tools, making a merchant’s digital history as valuable as physical collateral.

The momentum is real: according to the new Value of Acceptance study by Visa in partnership with MSMEDA, 77% of Egyptian SMEs consider digital payments crucial for growth, with more than half adopting them in the past two years. By aligning policy incentives with Visa’s market insights and acceptance capabilities, we don’t just update how Egypt pays; we accelerate SME growth and strengthen the transition of thousands of businesses into the formal economy.

Hassan Allam swaps local roots for a regional footprint in Riyadh

Hassan Allam Holding is expanding its real estate presence in KSA with the launch of Noor Khuzam, a SAR 3.3 bn integrated residential community in North Riyadh, according to a statement (pdf). The project, developed in a partnership between Hassan Allam’s newly established development arm Grova Developments, Saudi Arabia’s Tilal Real Estate, and the National Housing Company (NHC), will build over 3k units across 228km sqm.

Grova will lean on Hassan Allam Construction’s Saudi subsidiary to build the project, leaning on the wider company’s “vertically integrated model” that “gives us direct control over quality, cost discipline, and delivery timelines,” Grova Developments CEO Sherif Sadek tells EnterpriseAM.

Why it matters: This move cements Hassan Allam’s transition from a mostly local player to a regional figure in the real estate market. It also serves as an example that while Saudi capital flows into Egypt, Egyptian operational expertise is increasingly heading to the Kingdom.

Hassan Allam’s experience in the Egyptian market’s move from isolated compounds to integrated complexes is what gives Grova “a meaningful operational edge in Saudi Arabia,” Sadek said. Sadek described how this mini-city approach “pushed developers to master complexity” as they got to grips with successfully executing mixed-use planning, phasing strategies, operational integration, and long-term value creation, he said.

What’s next? While no formal commitments exist beyond Noor Khuzam, Grova seems to be eying a broader pipeline. Sadek points to “strong strategic alignment and genuine chemistry” with Tilal and describes the relationship with NHC as a long-term partnership as they continue to grow their footprint in Saudi Arabia.

Media Republic move signals the end of the remote Saudi strategy

Cairo-born creative agency Media Republic is establishing an on-the-ground presence in Saudi Arabia under a strategic partnership with Saudi investment firm Arsan Global, the two said in a joint statement (pdf). Media Republic will establish a regional hub in Riyadh under the agreement, which Media Republic Chairman Waseem El Tanahi told EnterpriseAM was a necessity given the growth in the market.

But Media Republic is no stranger to the Kingdom, having been active in the country — albeit at a distance — for around 10 years, we were told. Simply managing the company’s business from outside the country is no longer a viable model, especially as having boots on the ground to understand local culture and consumer behavior is the most valuable currency in the advertising sector today, El Tanahi said.

Why it matters: While others are working to keep operations in Cairo to reduce costs, Media Republic decided to build a full-service team in Riyadh from the start, El Tanahi told EnterpriseAM, noting that competition in the Saudi market is no longer just about price, but the ability to execute quickly and locally.

What’s next? Saudi Arabia is just the start, according to El Tanahi, who told us that the company aims to establish itself as the leading agency in the Kingdom, while using its Riyadh base as a hub to export its services to the rest of the GCC.

Tax policy chief Sherif El Kilany to step down

Sherif El Kilany‏ (LinkedIn) is stepping down from his role as vice finance minister for tax policy for personal reasons, senior government sources told EnterpriseAM. El Kilany decided to stay on long enough to wrap up the second package of tax reform measures, with the legislative amendments now finalized and expected to hit the House of representatives soon, we were told.

Why it matters: Egypt’s tax reform drive is entering a critical phase, with the government moving ahead on the new income tax law as part of a broader effort to modernize the system and widen the tax base, while also tolling out reform packages to integrate the informal economy and support investment. With major legislative changes in the pipeline, the Finance Ministry is now looking for a successor to take over the portfolio and carry the reform agenda forward.

ALSO– Al Futtaim Real Estate appointed Ahmed El Halawany (LinkedIn) as managing director of its Egypt operations, according to a company statement (pdf). He brings more than 18 years of experience in real estate development and project management across Egypt and the Middle East, including senior roles at SODIC, Orascom Development, Marakez Developments, and Emaar Misr, as well as Eagle Hills in the UAE and Morocco.

Cyprus agrees to foot the entire USD 2 bn bill for the Aphrodite pipeline

Cyprus pivots on Aphrodite as it agrees to cover all pipeline costs

Cyprus has agreed to bank roll the USD 2 bn pipeline connecting its Aphrodite field to liquefaction facilities in Egypt, a government official tells EnterpriseAM. Cypriot negotiators had initially been pushing for a 50:50 split, but agreed to cover the costs in exchange for utilizing Egyptian infrastructure, including its regasification vessels and liquefaction plants.

Why this matters: With domestic production slumps proving hard to turn around, securing flows from Aphrodite’s estimated 3.5 tcf of reserves will be critical for Egypt to ensure that its energy export hub plans will one day see the light of day.

What’s next? Construction on the pipeline is expected to start in 2027 with gas flows planned to start flowing in 2030, our source tells us. And in the near term, keep your eyes peeled for this year’s Egypt Energy Show in late March, which is expected to be accompanied with some big announcements on our gas re-export ambitions with Cyprus.

Orascom Construction sees revenues and net income rise in 2025

Orascom Construction saw its net income rise 65.3% y-o-y to USD 195.0 in 2025, according to its latest preliminary unaudited results (pdf). This was supported by revenues climbing 55.4% y-o-y to USD 5.1 bn over the same period, driven by progress across major projects in Egypt, the UAE, Saudi Arabia, and the US, with MEA projects contributing 57% to the total.

The company’s backlog — excluding its share in Besix — was up 18.9% y-o-y to USD 9.0 bn, while new awards were up 86.6% to USD 5.6 bn. Projects over the pond in the states contributed the lion’s share with USD 3.5 bn on the back of data center projects, while new awards in the Middle East and Africa hit USD 2.1 bn and included power, renewable energy and commercial projects.

MENA AI funding hits USD 858 mn in 2025, led by the UAE and Saudi Arabia

MENA AI venture funding climbed to USD 858 mn in 2025 as AI-native ventures dominated investments and Gulf markets anchored momentum, capturing 22% of total VC funding, according to a Magnitt report. AI-native firms — companies that embed AI in their core operations and framework — pulled in 69% of total AI funding, or USD 589 mn. AI-enabled ventures, which use AI as a tool to boost their systems, accounted for the rest, raising USD 269 mn.

The top players: The UAE captured 60% of the region’s total AI funding at USD 519 mn, a 267% surge y-o-y, with AI-native startups accounting for USD 392 mn. Saudi Arabia followed with USD 235 mn in investments, representing 27% of total AI funding and climbing 248% y-o-y, anchored by USD 170 mn in AI-native capital. Egypt raised USD 73 mn across 15 transactions, up 88% y-o-y and accounting for 8% of regional AI funding.

The sectoral breakdown: Sports and fitness topped AI funding, pulling in USD 250 mn — driven entirely by Xpanceo’s USD 250 mn series A — and accounting for 29% of total AI investment. Fintech followed with USD 157 mn, up 198% y-o-y, while enterprise software attracted USD 104 mn, a 131% increase y-o-y. IT solutions raised USD 63 mn and real estate secured USD 56 mn, largely due to Nawy’s USD 52 mn Series A.

Deployments were balanced between early-stage ventures and more mature companies across the region, which is a sign of a maturing market that is looking towards larger ticket sizes and growing AI ventures but also maintains a focus on early-stage firms, Magnitt’s Research Department Manager Farah El Nahlawi told EnterpriseAM. Investment ticket sizes were varied, with AI transactions ranging from as low as USD 3 mn to Xpances’s USD 250 mn — a mix of large outliers and smaller rounds.

Case in point: Pre-seed and seed AI transactions rose 56% y-o-y to 117 transactions. Meanwhile, series A activity scaled, with transaction count increasing to ten from six and funding surging to USD 485 mn. This performance points to a maturing pipeline, involving a strong early formation alongside a growing cohort of AI startups advancing toward commercial scale.

Strong activity across every stage of the startup pipeline was Saudi Arabia’s main highlight this year, supporting a more resilient AI ecosystem, El Nahlawi told us. This is evidenced by a 79% surge in AI transaction volume (reaching 68 transactions) and widespread support for early and mid-stage companies.

Egypt’s AI sector is more skewed towards utility and addressing needs, El Nahlawi said. The country’s relatively smaller market size and liquidity constraints, compounded by currency and macro challenges, are making it a regional hub for applied AI. Funding is directed toward solutions that meet immediate demand, such as proptech and fintech, rather than areas with more uncertain growth.

What’s next? The AI and VC ecosystem outlook is positive for the UAE and KSA this year thanks to strong capital flows, sovereign support, and rising international interest, El Nahlawi told us. Despite risks from higher interest rates, weaker oil prices, and geopolitical tensions, current low rates and market optimism support growth. With regional AI funding up fivefold since 2021, continued investment and ecosystem development position AI as a pillar of the region’s venture growth in 2026.

EGX30	50,490	+1.6% (YTD: +20.7%)
USD (CBE)	Buy 46.76	Sell 46.89
USD (CIB)	Buy 46.75	Sell 46.85
Interest rates (CBE)	19.00% deposit	20.00% lending
Tadawul	11,252	+0.8% (YTD: +7.3%)
ADX	10,636	-0.5% (YTD: +6.4%)
DFM	6,730	+0.2% (YTD: +11.3%)
S&P 500	6,836	+0.1% (YTD: -0.1%)
FTSE 100	10,446	+0.4% (YTD: +5.2%)
Euro Stoxx 50	5,985	-0.4% (YTD: +3.4%)
Brent crude	USD 67.75	+0.3%
Natural gas (Nymex)	USD 3.24	+0.8%
Gold	USD 5,046	+2.0%
BTC	USD 69,968	+1.5% (YTD: -20.1%)
S&P Egypt Sovereign Bond Index	1.023	+0.1% (YTD: +3.1%)
S&P MENA Bond & Sukuk	153.28	+0.3% (YTD: +0.9%)
VIX (Volatility Index)	20.60	-1.1% (YTD: +37.8%)

THE CLOSING BELL-

The EGX30 rose 1.6% at Thursday’s close on turnover of EGP 6.9 bn (14.6% above the 90-day average). International investors were the sole net buyers. The index is up 20.7% YTD.

In the green: Orascom Construction (+5.0%), Rameda (+4.4%), and CIB (+2.9%).

In the red: ADIB (-2.3%), EFG Holding (-1.6%), and Palm Hills Developments (-1.2%).

CALENDAR

2026

FEBRUARY

19 February (Thursday): First day of Ramadan (TBC).

MARCH

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

21 March: (Saturday): Eid El Fitr starts (TBC).

30 March – 1 April (Monday-Wednesday): Egypt International Energy Conference and Exhibition (EGYPES).

APRIL

2 April (Thursday): Monetary Policy Committee’s second meeting of 2026.

12 April (Sunday): Coptic Easter.

25 April (Saturday): Sinai Liberation Day.

MAY

1 May (Friday): Labor Day.

21 May (Thursday): Monetary Policy Committee’s third meeting of 2026.

27-29 May (Wednesday-Friday): Eid El Adha (TBC).

JUNE:

30 June (Tuesday): National holiday in observance of the June 30 Revolution (TBC).

JULY

9 July (Thursday): Monetary Policy Committee’s fourth meeting of 2026.

23 July (Thursday): National holiday in observance of Revolution Day (TBC).

AUGUST

20 August (Thursday): Monetary Policy Committee’s fifth meeting of 2026.

26 August (Wednesday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

SEPTEMBER

15 September (Tuesday): IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

24 September (Thursday): Monetary Policy Committee’s sixth meeting of 2026.

27-29 September (Sunday-Tuesday): Global Conference on Population, Health, and Human Development.

OCTOBER

6 October (Tuesday): Armed Forces Day.

29 October (Thursday): Monetary Policy Committee’s seventh meeting of 2026.

DECEMBER

17 December (Thursday): Monetary Policy Committee’s eighth meeting of 2026.

EVENTS WITH NO SET DATE

Early 2026: Passenger operations on the New Administrative Capital-Nasr City monorail scheduled to begin.

Early 2026: The government will launch the second package of tax breaks.

1Q 2026: Trial operations for the Ain Sokhna-Sixth of October section of Egypt’s first high-speed rail line scheduled to begin.

1Q 2026: Turkish President Recep Tayyip Erdogan to visit Egypt.

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

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.

2027: Egypt-EU Summit 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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Policy makers pivot toward growth with 100 bps rate cut as inflation retreats

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Policy makers pivot toward growth with 100 bps rate cut as inflation retreats

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