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1

What We're Tracking Today

Banks will be closed on Wednesday to mark the end of their fiscal year

Good morning, friends. We close out 2024 with another packed issue busy with the latest on our automotive localization push, fresh incentives for industrial players, and a continuation of our recap of everything worth knowing from the past year.

** This is the last issue of EnterpriseAM Egypt for this year. We’re taking a publication break through Saturday to gear up for 2025 and we will be back in your inboxes at our usual time on Sunday, 5 January.

PSA-

Banks will be closed on Wednesday, 1 January, to mark the end of their fiscal year, and will return to work on Thursday, 2 January, the Central Bank of Egypt said in a statement yesterday.


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 10°C.

HAPPENING TODAY-

CBE to hold USD t-bill auction: The Central Bank of Egypt will auction off USD 800 mn worth of one-year, USD-denominated t-bills, with the submission deadline penciled in for 11am today.

CIRCLE YOUR CALENDAR-

The Egyptian Tax Authority will begin accepting tax filings for 2024 on 1 January 2025, Egyptian Tax Authority head Rasha Abdel Aal said in a statement. Individuals will have until 31 March to file, while companies have until 30 April or four months after their fiscal year ends. Filings must be submitted electronically through authority platforms.

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-

Jimmy Carter, the 39th US president and Nobel laureate, died at 100. Carter passed away at his home in Georgia on Sunday. Carter played a major role brokering the 1978 Camp David Accords, “His (Carter’s) significant role in achieving the peace agreement between Egypt and Israel will remain etched in the annals of history,” President Abdel Fattah El Sisi said in a post on X where he extended his condolences to Carter’s family. Following the peace agreement, Carter earned acclaim for his humanitarian efforts, winning a Nobel Peace Prize in 2002. (Reuters | CNN | BBC | Financial Times | Washington Post | New York Times)

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at the hurdles — and opportunities — the education sector faced in 2024.

Cheers to the New Year: Two Weeks of Non-Stop Fun at Somabay

Get ready to kick off 2025 in style at Somabay, where the Red Sea sparkles a little brighter this season! Renowned for its stunning resorts and iconic landscapes, Somabay is pulling out all the stops with two weeks of dazzling celebrations.

This year, the stage is set with showstopping events powered by CJC, ByGanz, and Stefano & Friends, promising endless fun for adults, while the little ones dive into excitement with the WG Junior Camp and the grand opening of the Playpark.

Whether you’re dancing the night away or watching your kids create their own magical moments, Somabay guarantees a New Year celebration filled with joy, adventure, and memories to last a lifetime.

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YEAR IN REVIEW - INVESTMENTS

The most notable foreign investments secured in 2024

As 2025 approaches, Egypt is set to attract bns in foreign direct investment, with a focus on key sectors including automotive, textiles, steel, renewables, green ammonia and fertilizers. Throughout 2024, the country secured commitments from companies and investors across the globe promising to pump funds into various industries — GCC nations were among the top investors in the Egyptian economy.

UAE- The UAE made the biggest investment Egypt has ever seen with the Ras El Hekma agreement and it didn’t stop there, the year saw a number of Emirati players pledge investments in the local economy.

ADQ’s USD 35 bn Ras El Hekma agreement contributed the lion’s share of Egypt’s FDI for the year and marked the “largest direct investment agreement in Egypt,” to use Prime Minister Moustafa Madbouly’s words. ADQ paid USD 24 bn for the development rights to Ras El Hekma and converted some USD 11 bn worth of UAE deposits at the Central Bank of Egypt into money to be invested.

Investments in freezones: Dubai’s state-owned port operator DP World is exploring thepossibility of developing a public freezone in the new capital. The proposed project will span 500 feddans owned by New Administrative Capital for Urban Development and will focus on key industrial sectors, including electronics, automotive, fast-moving consumer goods, garments, and footwear.

Also in the pipeline: UAE’s Masdar and the Egyptian state’s Future of Egypt will set up a floating solar plant in Lake Nasser and a solar plant in Nag Hammadi. AD Ports could set up a renewables-focused industrial zone in East Port Said and UAE’s Global South Utilities, China’s Weiheng, alongside the Industry Ministry will set up a USD 12 mn battery storage factory.

KSA- Saudi Arabia started investing in Egypt again this year and pledged a lot more. Saudi Crown Prince and Prime Minister Mohammed bin Salman said back in September that he had directed the Public Investment Fund to invest USD 5 bn in Egypt as part of the “first phase” of a larger program.

To sweeten the pot: Egypt and KSA this year inked two agreements focused on streamlining mutual investments and providing investment guarantees. The inking of the Agreement on Promotion and Mutual Protection of Investments between Egypt and Saudi is expected to bring in upwards of USD 10 bn in bilateral investments over the next three years.

And there’s another big acquisition on the way: PIF is working to acquire CIRA Education and use it as a regional platform. The Saudi Egyptian Investment Company — a wholly-owned subsidiary of the Public Investment Fund — said in May that it would buy into CIRA majority shareholder Social Impact Capital. SIC has used the cash injection to launch its mandatory tender offer for the rest of CIRA’s shares — the offer got the green light from the Financial Regulatory Authority earlier this month.

QATAR-

Qatar is working on a “very important” real estate project on the North Coast and the Egyptian and Qatari sides are working to implement it quickly. The country is also looking into investments into the North Coast’s tourism and hospitality sectors and has expressed interest in making logistic zone and port investments, with discussion on the topic currently ongoing.

Other than Gulf nations, two countries emerged as some of the top investors in Egypt this past year — Turkey and China.

TURKEY-

A USD 7 bn Turkish industrial zone? In March, Egyptian Group For Multipurpose Terminals and Turkish firm Doğuş Construction and Trade signed an MoU to establish a logistics hub in Gargoub on the country’s northwest coast with over USD 7 bn in estimated investment. The project, which will include a commercial port and freezones, is expected to kick off operations in 2026.

Turkish investments in Egypt continue to grow: In June, Turkish ready-made garment maker Şirikcioglu received approval for a USD 700 mn denim factory in Port Said. Erciyas Holding also announced plans to set up a USD 60 mn factory for oil, gas and water pipes, with 60% of production directed towards exports. Apparel company Denim Rise will set up a garment factory in Qantara West, with investments of USD 8.8 mn. Snackmaker Saray Biskuvi will also invest USD 8 mn in a food factory, targeting global exports. Turkish clothing manufacturer Eroglu Holding also broke ground on a new garments factory in Qantara West this year in November to bring its total investments to USD 51 mn.

CHINA-

China is ramping up its presence in Egypt, with this past year witnessing a long list of Chinese investments announced. Steelmaker Wu’an Xin Feng is planning a USD 1.7 bn industrial complex in the SCZone, with nine factories producing automotive brake components, household appliance parts, standard fasteners, hot-rolled steel coils, and more. Textile manufacturer Kelida will set up a USD 30 mn home textiles plant in the Qantara West Industrial Zone. And Elite Solar is building a USD 150 mn solar cell factory in Ain Sokhna.

The automotive sector remains a focal investment point, with Chinese companies like FAW Group and Chery International preparing to enter the Egyptian market in 2025. Meanwhile, an unnamed Chinese player is working with the Arab Organization for Industrialization to set up a USD 360 mn tire factory in the SCZone. There’s also luxury SUV manufacturer Exeed, which has begun locally assembling its models.

El Nasr Automotive resumed operations in the second half of the year, delivering the first batch of electric buses in partnership with China's Yutong to Transport Ministry-affiliated companies. There’s also Chinese automaker Jinbei, which is set to start assembling its models in Egypt at the beginning of 2025.

And that’s not all: Al Mansour Automotive and Chinese state-owned SAIC will set up a USD 135 mn factory for the manufacture of SAIC-owned brand MG vehicles. We have the full story in the news well, above.

Other Chinese investments include: Luggage manufacturer Hangzhou Henneway Travel Goods — whose client brands include Samsonite, Swissgear, Travelite, and Delsey — kicked off construction on its USD 50 mn factory in the Qantara West Industrial Zone. China’s New Hope Group is exploring a USD 100 mn investment to establish a feed production complex in an industrial zone

Want the full list: Check out our breakdown of Chinese investments in the country in an Inside Industry published earlier this year.

ALSO WORTH NOTING-

Poland is also increasing its investment in Egypt, with renewables player Hynfra planning a USD 10.6 bn green ammonia plant. The first phase of the project is set to be up and running by 2030.

German Investments are set to increase, with a EUR 1 bn direct reduced iron factory and EUR 30 mn flame-resistant material plant in the pipeline. Carmaker Volkswagen expressed interest in helping develop a shared production facility in the East Port Said Industrial Zone.

Norwegian renewables developer Scatec is setting up a USD 1.1 bn solar plant to power EgyptAlum’s Nagaa Hammadi industrial complex.

Industrial real estate developer Polaris Parks will develop two new major industrial parks in Egypt with investments of EGP 10.5 bn. The projects together are set to host a total of 1k factories and create 50k jobs.

Indian investments: India is looking into setting up a USD 60 mn carbon black factory in Egypt and Indian textile manufacturer Welspun wants to set up a project in Egypt to help it enter African markets and boost exports to European, Arab, and US markets.

On the auto front: Automotive player Stellantis plans to invest EUR 116 mn in the local manufacture of four vehicle models expected to hit the streets over the course of three years and Nissan Egypt inked an agreement with the government to invest USD 45 mn into manufacturing.

In the Golden Triangle, local and foreign investors have submitted three proposals to set up phosphate and phosphoric acid fertilizer factories with a combined USD 1.6 bn of investment.

Also being mulled: Hyundai for Home Appliances is looking to set up its own facility in Egypt to help it boost exports across the region.

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YEAR IN REVIEW - CAPITAL MARKETS

Looking back at capital markets throughout 2024: IPOs, regulations, and delistings

Another year where IPOs were few and far in between: We rang in 2024 with the expectations that three companies would IPO throughout the year — the EGX witnessed only two IPOs in 2024.

2024’s first IPO: Act Financial began trading on the EGX in late July and saw its shares jump 29.7% on the first day of trading. The firm offered some 32% of the company — 360 mn shares — to investors. The retail tranche of the IPO was 54.8x covered, while the institutional tranche was 20.2x oversubscribed, the highest demand a subscription period has seen in six years. All in all, the combined offering was 26x oversubscribed.

And the first IPO of a bank on the EGX in 28 years: The state successfully sold a 30% stake in the CBE-owned United Bank, which hit the EGX earlier this month following a heavily oversubscribed IPO. United Bank’s retail offering was oversubscribed 59x, while the offering’s private placement was covered 6x. The offering as a whole was more than 8.6x oversubscribed.

2023 was a dry year for the IPO market: Last year saw only a single company make its EGX debut, Taqa Arabia started trading on the EGX in July 2023 — in a technical listing, not an IPO — listing 1.35 bn shares on the exchange. No company has made its EGX debut since.

Other activity on the EGX: Lotus for Agricultural Investments and Development made themove from the EGX’s small and medium enterprises market to the main market after spending a little over a year trading on the NileX.

There’s a lot of liquidity in the market as a hedge against devaluation and inflation, Amr Helal, CEO of sell-side investment bank at CI Capital, said during the EnterpriseAM Finance Forum in September. “I think more needs to be done to encourage those investors, especially as interest rates come down and the easy money from parking funds in treasuries or government securities fades, to increase their allocation to the stock market,” he added.

Regional performance: Egypt came in second as the best MENA market for expected USD performance in 2024, in EFG Hermes Research's annual One-on-One Live Poll receiving 25% of the votes counted. Leading the pack was Saudi Arabia with 44%, while Dubai came in third with 12% and Abu Dhabi in fourth with 8%.

The hot sectors for the year: Respondents were evenly split on which sectors will perform best in the MENA region this year, with 27% voting for real estate and an equal amount voting for healthcare. In third place was banks with 24% of the vote.

The year saw plenty of companies announce their intent to IPO on the EGX: In January, Raya Holding announced its plans to offer stakes in Raya Trade & Distribution, Raya IT, and Aman Financial Services “when the market is ready to accommodate new offerings.” The National Printing Company (NAPR) will reportedly make its EGX debut in 2H 2025. The company had initially planned to go public in the fourth quarter of this year but decided to delay the offering to await clearer market conditions. The EGX approved the temporary listing of the company in February.

What could be the largest-ever public share sale in Egypt got pushed back again: The Administrative Capital for Urban Development (ACUD) will be ready to make its EGX debut in 2025, chairman Khaled Abbas told local media in May.

Also in the pipeline for next year: Banque du Caire is reportedly planning to list in 2H 2025.

Some companies departed the EGX: This year witnessed the voluntary delisting of IntegratedDiagnostics Holdings (IDH) due to “limited trading activity.” Ezz Steel is also working to delist its shares from the EGX.

New listing, delisting rules: In September, the Financial Regulatory Authority introduced new regulations for firms looking to delist from the Egyptian stock exchange, as well as new regulations for special purpose acquisition companies.

More diverse indices: In June, the EGX launched its first Sharia-complaint index. The index’s 33 listed companies represent 16 different sectors and have a maximum weight of 15% for any of them.

Egypt welcomed its first SPAC: Impact investor Catalyst Partners’ SPAC, Catalyst Partners Middle East became Egypt’s first SPAC, listing 1 mn shares with a nominal value of EGP 10 per share during its EGX debut. The SPAC is looking to acquire six to ten companies — including two fintech and NBFS firms.

Egypt launched Africa’s first carbon market in August. The market allows companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions.

WHAT DOES 2025 HAVE IN STORE-

Aiming for IPOs record: 2025 is shaping up to be a busy year for IPOs on the EGX.

Primarily driven by government support: The Suez Canal Authority plans to list a stake in its subsidiary, Canal Company for Mooring and Lights. The government also intends to offer stakes of up to 25% in Port Said Container & Cargo Handling and Damietta Container & Cargo Handling during 1H 2025. Additionally, 10 companies are slated for privatization via direct sales to strategic investors and/or through EGX listing.

Private sector players lining up for the market: Several private companies announced plans to go public on the EGX in 2025, including Valu, El Attal Holding, Al Ahly Group for Modern Agriculture, Go Green for Agricultural Investment and Korra Energi, which intends to list 20% of its shares. Other notable companies include Smart Village and Al Ahly Sabbour, which has been eyeing an IPO since 2017. Other private sector players looking to make their EGX debuts next year include Tabarak Holding, Enara Group, and Basata Holding for Financial Investments.

IPO plans beyond 2025: The outlook for IPOs looks even brighter for the years beyond 2025, with several companies across different sectors gearing up for public offerings. These include GoBus, which plans to list 30% of its shares by 2026, and MO Group for Food Industries, which announced in December plans to offer up to 35% of its shares within three years. Other companies eyeing IPOs in the coming years include SIAC Holding, Adeer International (a subsidiary of Saudi Arabia’s Sumo Holding), real estate player Arabia Holding, Friday Ice Cream, Al Gioshy Steel, and Sun Way Egypt.

Derivatives will begin trading on the EGX in 2Q 2025, Financial Regulatory Authority Deputy Chairman Islam Azzam said. Azzam highlighted futures contracts for indices as being among the incoming additions.

One of the largest ever capital increases on the EGX: Beltone Holding will increase itscapital by EGP 10.75 bn in a bid to support its growth strategy to strengthen its market position, leveraging data science to expand its financial services and expand its product offerings.

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Manufacturing

Gov’t unveils EGP 30 bn industrial initiative

A new EGP 30 bn initiative for local manufacturers: The industry and finance ministries have announced the launch of the first phase of a new EGP 30 bn initiative to support companies in priority industrial sectors, according to an Industry Ministry statement. The initiative aims to help private players finance the purchase of new machinery, equipment, and production lines.

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

Targeted sectors: The initiative targets the pharma, food, engineering, chemicals, ready-made garments, spinning and weaving, mining, and building materials sectors.

A focus on Egypt’s underdeveloped areas: The initiative gives priority to facilities located in border governorates, Upper Egypt, southern Giza, Port Said, Ismailia, and Suez.

What does it entail: The initiative provides beneficiaries with a subsidized interest rate of 15% for five years from the start date of the initiative, with a maximum financing limit of EGP 75 mn per client or a total of EGP 100 mn for related entities. The initiative also includes additional incentives tied to increasing local value-added products. If a company boosts its local value-added by 7-10% compared to the previous fiscal year, the interest rate will be reduced by 1 percentage point. If value added increases by more than 10%, a 1.5 percentage point reduction applies. Companies with high import volumes can also benefit from a 2 percentage point interest rate reduction.

The initiative marks the latest in a long list of incentives introduced this year to support industry — Read more about how the industrial sector fared in 2024 in our two-parter Inside Industry. Check out the stories here and here.

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YEAR IN REVIEW - M&A

What drove Egypt’s M&A activity in 2024?

Egypt has also seen a flurry of M&A activity this year — further cementing its position as a key player in the global acquisitions landscape. Government-led transactions made headlines this year, with Egypt Post acquiring EGP 8.9 bn worth of stakes from the National Investment Bank in seven EGX-listed companies. But the bulk of acquisitions occurred in the private sector, which we break down for you below.

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

YEAR-DEFINING M&AS-

The year was abuzz with M&A activity, but only a few transactions earned the title of being year-defining — those include:

#1- Philip Morris snapped up minority stake in Eastern Company: US-based tobacco giant Philip Morris International acquired an indirect 14.7% stake in state-owned cigarette maker Eastern Company in May.

#2- Shakeup at CIRA: CIRA Education’s majority shareholder Social Impact Capital earned the Financial Regulatory Authority’s green light to acquire up to an additional 48.78% of CIRA through a mandatory tender offer. SIC has offered to purchase some 284.3 mn of CIRA’s shares at EGP 15 a piece putting the transaction’s value at EGP 4.26 bn. SIC currently holds a 51.2% stake in the country’s leading private education company.

#3- B Investments acquired 70% of Orascom Financial Holding through a share swap after owners of some 3.3 bn shares responded to B Investments’ MTO for up to 90% of OFH.

#4- Bidder for Raya Foods: Raya Holding approved and initially accepted Africa-focussed and London-based PE outfit Helios Investment Partners’ USD 40 mn bid for 49% of subsidiary Raya Foods. Last we heard Raya Holding has tapped Attijariwafa Bank as its financial advisor and Baker McKenzie as its legal counsel for the transaction.

ALSO FROM RAYA- Raya Holding sold a 42.9% stake in Raya Data Centers to African infrastructure investment platform Africa50 for USD 15 mn.

#5- NYSE-listed AngloGold Ashanti acquired Centamin, gaining ownership of the Centamin-run Sukari mine in Egypt, one of the world’s largest gold mines.

#6- Bisco Misr is getting a new majority shareholder after American cereal and snack maker Kellanova agreed to sell its entire majority stake in Egypt’s largest biscuit company to UAE-based business conglomerate Hayel Saeed Anam Group. The transaction is expected to close within weeks, according to Al Borsa.

WE CAN EXPECT MORE TRANSACTIONS IN 2025-

We’re still waiting on Arla: Denmark's Arla Foods submitted a non-binding offer to acquire up to 100% of EGX-listed dairy company Domty in a transaction that valued the company at some USD 183 mn. Last we heard, Arla was given the go-ahead by Domty’s board to conduct due diligence.

Stay on the lookout for: Clothing manufacturer T&C Garments plans to offer 20-25% of the company’s shares to foreign investment funds, the company’s chairman told Al Arabiya back in January. There haven’t been any updates on the sale since.

AND- Earlier this month, Axa Egypt and Morocco’s Wafa Assurance each registered theirinterest through non-binding offers to buy up to 100% of Egypt Kuwait Holding (EKH) subsidiary Delta Ins.’ shares through mandatory purchase offers.

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A MESSAGE FROM HSBC

Opportunity is rarely a straight line. Our international network connects you to what’s next. Search HSBC Egypt

7

M&A WATCH

New acquisition ups Al Ahly’s stake in Easy Lease to 97.6%

Al Ahly Capital Holding now owns 97.6% of Easy Lease, after the National Bank of Egypt’s investment arm acquired an additional 93.1 mn shares — equivalent to a 46.6% stake — of the local financial leasing services provider from Elsewedy Capital for an undisclosed sum, according to a statement (pdf). The share increase comes after the company acquired a 51% stake in Easy Lease back in April.

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

Behind the acquisition: Al Ahly Capital Managing Director Karim Saada said the acquisition came under its strategy to enhance lending activity within its NBFIs.

Advisors: Al Tamimi & Company served as legal advisors, while Al Ahly Pharos acted as financial advisor. Al Ahly Pharos Securities Brokerage was the broker for the transaction.

8

Automotive

Al Mansour Auto, SAIC’s USD 135 mn MG manufacturing plant to go live in 2026

Fresh details on the Al Mansour Automotive’s MG manufacturing plant: Al Mansour Automotive and Chinese state-owned SAIC will invest some USD 135 mn on their factory for the manufacture of SAIC-owned brand MG vehicles, according to a cabinet statement.

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

Land for the project secured: The Transport Ministry inked a land usufruct agreement with Al Mansour Auto, granting it a 126k sqm plot in New October City for its factory.

Al Mansour secures technical licensing for the project: SAIC inked an agreement granting Al Mansour Auto the technical license to produce MG cars in Egypt.

The details: The factory will have a production capacity of 50k units annually during its first phase and its production capacity is set to double during its second phase. The facility will include body, paint, and assembly workshops, and will create some 10k direct and indirect jobs. The factory is set to kick off production in 2Q 2026 and will have a local component ratio exceeding 45%.

The factory will produce the MG5 Sedan model, but Al Mansour has future plans to begin manufacturing four-wheel drive vehicles and EVs, according to a separate statement.

A confirmation after weeks of unconfirmed reports: The news follows weeks of unconfirmed reports regarding the partnership, the factory, and the land usufruct agreement.

The MG factory aims to meet export and local demand and is part of broader government efforts to localize the auto industry.

A long time coming: The two have been working together for some time now, with Al Mansour securing the rights to be MG’s exclusive distributor in Egypt back in 2018. Just a year after this, we first heard about Al Mansour Automotive’s plans to produce MG-badged vehicles in partnership with MG Motor parent company SAIC.

** READ MORE: We dive deeper into the efforts to localize Egypt’s auto industry in an Inside Industry published earlier this year. Check out the story here.

9

DEBT WATCH

EFG Finance’s Bedaya issues EGP 1.8 bn in securitized bonds

The end-of-year securitization rush continues: A number of entities announced closing securitization issuances other the past 24 hours.

DATA POINT- These issuances bring the total value of securitized bonds issued in Egypt this year to EGP 38.0 bn — 58.3% less than the amount raised in the same period last year — according to data tracked by EnterpriseAM.

BEDAYA CLOSES FIFTH SECURITIZATION ROUND-

Bedaya closes EGP 1.8 bn securitization round: Bedaya Mortgage Finance, a subsidiary of EFG Holding’s NBFI arm EFG Finance, has completed an EGP 1.8 bn securitization issuance, according to a statement (pdf). The issuance is the company’s fifth ever, and third of a wider EGP 10 bn program.

(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 issuance included four tranches with tenors ranging from 13 to 81 months which receive credit ratings from AA to A- from the Middle East Ratings and Investors Service (MERIS). The issuance was backed by a receivables portfolio from GB Corp’s Capital for Securitization as the issuance’s special purpose vehicle.

Who bought in? The National Bank of Egypt (NBE), Arab Banking Cooperation, and SAIB Bank were among the transaction’s subscribers.

Advisors: EFG Hermes acted as sole financial advisor and transaction manager. It was also bookrunner, underwriter and arranger. Abu Dhabi Commercial Bank was the custodian bank. Barakat, Maher & Partners in collaboration with Clyde & Co provided legal advisory, while Sherif Mansour Dabus-Russel Bedford served as the auditor. NBE and Al Baraka Bank were underwriters.

CONTACT FINANCIAL CLOSES ITS 45TH SECURITIZATION ISSUANCE-

Contact Financial has closed an EGP 1.2 bn securitization issuance, its second this year, the non-banking financial services player announced in a press release (pdf). The bonds were issued by Contact’s Sarwa Securitization and backed by a Contact Credit portfolio.

The issuance included three tranches with maturities ranging from 13 to 60 months, receiving AA+, AA, and A ratings from MERIS.

The buyers: Al Ahli Bank of Kuwait and CIB were among the issuance’s subscribers, alongside several money market funds, the statement noted. Al Ahli Bank of Kuwait, CIB, CI Capital, Contact, and Al Ahly Pharos were underwriters.

It’s been a busy year for the firm: The issuance marks Contact Financial’s second of the year, following an EGP 1.04 bn issuance in May. The company also opened its first branch in Dubai in September, with further regional and European expansions — as well as plans to establish a new ins. consultancy — also on the cards.

Advisors: Contact served as the issuance manager and promoter, while the Arab African International Bank acted as the custodian and placement agent. Our friends at ALC Alieldean Weshahy & Partners provided legal counsel, while KPMG served as auditor.

AL AHLY LEASING AND FACTORING CLOSES SECURITIZATION ISSUANCE-

Al Ahly Leasing and Factoring has raised EGP 878 mn from a securitized bond issuance, its second under a three-year EGP 4 bn program, according to a statement(pdf) from legal counsel Dreny & Partners.

The details: The issuance was backed by a portfolio of receivables originated by Al Ahly Leasing and Factoring and it came in three tranches rated AA+ to A.

Advisors: Al Ahly Pharos acted as the financial advisor and lead arranger for the transaction, also serving as underwriter alongside the NBE, Arab African International Bank, and Banque du Caire. NBE acted as the custodian, Banque du Caire as the bookrunner, and Baker Tilly as the official auditor. Dreny & Partners acted as counsel.

10

Also on our Radar

Klivvr to launch consumer finance arm

NBFS-

Klivvr gets FRA greenlight to launch consumer finance company: Fintech player Klivvr secured the Financial Regulatory Authority’s approval to establish a consumer finance company, enabling it to offer flexible financing services, Al Mal reports. The company will integrate these services with its existing offerings, including digital payments, rewards, and family-wide account management through a unified app.

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

11

PLANET FINANCE

Businesses are bracing for Trump tariffs with frontloading and price hikes

Bracing for impact: US and European businesses are preparing for an anticipated US wave of tariffs by frontloading orders and considering price hikes, Bloomberg reports. These potential tariffs are creating more uncertainty for businesses, which had already pivoted some of their operations and supply chains to address tariffs and policies under US president-elect Donald Trump’s first presidency in 2018.

Several companies are frontloading orders and shifting their supply chain from countries expected to be targeted by tariffs, while others are seeking new suppliers or renegotiating terms with existing ones. Meanwhile, US container gateways are experiencing a surge in inbound shipments — a trend that is expected to continue until the spring of 2025, CEO of Long Beach’s port Mario Cordero said.

A costly strategy: The increasing pace of frontloading can lead to higher shipping costs and potentially create bottlenecks at US ports, said Citigroup Inc. senior global economist Robert Sockin. Meanwhile, potential port strikes in the US in the upcoming weeks add more chaos to the global trading system, fueling frontloading orders and stock build-up.

The looming tariffs are also pushing companies to consider price hikes to maintain their net income margins. However, price hikes will have to be limited for these companies to remain competitive.

IN CONTEXT- President-elect Donald Trump, set to take office on 20 January, has proposed a 60% tariff on Chinese goods, followed by an additional 10%, as well as a 10% tariff on imports from other countries. Separate tariffs targeting Canadian and Mexican goods have also been suggested, leaving businesses scrambling to adapt to the potential cost increases and supply chain disruptions.

Chinese businesses are also exploring alternatives: Several Chinese companies are expanding into other markets in Europe and Southeast Asia in preparation for US tariffs, Bloomberg reported earlier. Some firms are considering establishing production operations in the US, aiming to completely avoid tariffs, while others are planning to rely on Chinese customers, capitalizing on their large order capacity.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with Japan’s Nikkei down 0.7%, Australia’s ASX 200 down 0.6%, while Shanghai Composite is up 0.2% in early trading. Meanwhile, Dow, Nasdaq, and S&P futures were all slightly down in overnight trading.

EGX30

29,594

-1.2% (YTD: +18.9%)

USD (CBE)

Buy 50.79

Sell 50.92

USD (CIB)

Buy 50.80

Sell 50.90

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,893

+0.3% (YTD: -0.3%)

ADX

9,328

-0.5% (YTD: -2.6%)

DFM

5,130

+0.4% (YTD: +26.4%)

S&P 500

5,971

-1.1% (YTD: +25.2%)

FTSE 100

8,150

+0.2% (YTD: +5.4%)

Euro Stoxx 50

4,899

+0.8% (YTD: +8.4%)

Brent crude

USD 74.17

+1.2%

Natural gas (Nymex)

USD 3.38

+1.9%

Gold

USD 2,632

-0.8%

BTC

USD 93,415

-1.8% (YTD: +121.0%)

12

BLACKBOARD

How Egypt’s education sector fared in 2024

Egypt’s education sector underwent a seismic shift in 2024, driven by sweeping policy reforms, mounting economic pressures, and a push to attract global attention. From an overhaul of the Thanaweya Amma system to the rollout of a foundation year for universities, the government sought to modernize the education system while grappling with the financial fallout of the float of the EGP. The year brought both hurdles and opportunities, reshaping the landscape for students, parents, educators, and investors. Here’s how the sector evolved over the past 12 months.

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The start of 2024 saw Egypt announce sweeping reforms to the Thanaweya Ammasystem, aiming to bring it in line with international standards like the British IGCSE and the American SAT admission tests. The new model, set to roll out in the 2026-27 academic year, will allow students to choose from flexible academic tracks beyond the current science and literature divisions. “The system is being developed alongside industry professionals and international experts so it is up to par with international standards,” a source from the Education Ministry told EnterpriseAM at the time.

The revamped system will introduce significant changes to high school grading. Only six subjects will count toward the final grades of first- and second-year students in high school, down from ten and eight, respectively. Meanwhile, third-year students will only take five graded subjects instead of seven. Second foreign languages, geology, psychology, and religious studies will all become pass/fail subjects, meaning they won’t impact the final grade.

The reforms have been met with mixed reactions: While the move could ease student pressures and curb private tutoring, concerns linger over rushed implementation and teacher readiness. Private schools remain optimistic, citing sustained demand for international education, though private investment faces hurdles from rising costs and regulatory challenges. The government is working to balance the sector by improving access and encouraging private sector growth, but the system’s true impact remains to be seen.

Another major change on the horizon is the formal introduction of a foundation yearsystem , set to roll out by 2025-26. Designed as a credit-hour program, the system allows students to boost their scores with bonus points expected to range between 5-10%, making previously inaccessible faculties attainable. While optional, the program excludes public universities, pushing demand toward private institutions. Other legislative amendments are currently in progress, with plans to standardize regulations in line with international norms, making Egypt a competitive hub for education tourism and reducing the need for students to study abroad.

The government is also shaking up grading for Arabic, religion, social studies, and history in international schools. Beginning September 2025, these subjects will count toward end-of-year grades for international school students, contributing 10% each. The changes aim to strengthen national identity, with subjects taught across various grades. While officials call it a move in the right direction, parents and some schools argue it disrupts international curricula. Schools are preparing alternative proposals, but the Education Ministry has so far remained firm in the decision.

Educators, parents, and students felt the full impact of the float, as soaring costs strained Egypt’s education sector across the board. International and private schools struggled to balance rising operational expenses with government-imposed tuition caps, leaving many institutions on precarious financial footing. Schools faced mounting challenges, from skyrocketing FX-linked teacher salaries to higher fuel and material costs, prompting a wave of negotiations with the Education Ministry for more flexible tuition policies. Parents, meanwhile, braced for higher fees and ancillary costs, such as transportation and uniforms, as schools sought to pass on some of the financial strain.

The gov’t wants to attract more foreign students to ease FX pressures: Schools have rolled out installment plans and creative cost-cutting measures, while universities have leaned on foreign students and international partnerships to mitigate the financial blow. Study abroad programs, hit hard by the volatile exchange rate, have been reimagined with shorter, more affordable alternatives and scholarship opportunities for exceptional students. At the same time, government efforts to internationalize education — by attracting more Arab and African students — are helping to offset FX pressures and position Egypt as a regional education hub.

So, how have international student numbers held up? The government is pushing to attract 200k international students to Egyptian universities by 2030, targeting USD 2 bn in education tourism revenue. Enrollment has been steadily climbing, with 30k international students expected this year, up from 26k last year and just 8.3k in 2018-19. Flagship schools like Cairo University, Mansoura University, and Alexandria University are the top choices, partly due to their accreditation by Gulf-based education ministries. However, higher tuition fees could test the appeal, with popular faculties like medicine now costing USD 8k, up from USD 2.1k in 2021. Additionally, while the influx of foreign students boosts cultural exchange and revenue, it’s also tightening competition for seats, raising public university admissions thresholds for Egyptian students.

Egypt’s transnational higher ed sector sees steady growth: Egypt’s higher education landscape now hosts over 100 foreign institutions operating through international branch campuses (IBCs), joint and dual degrees, franchises, and other partnerships. The government’s push is driven by a booming youth population, limited local capacity, and demand for affordable alternatives to overseas education amid FX pressures.

But it’s not all smooth sailing: FX shortages have stalled construction on new campuses, regulatory gaps for non-IBC models leave room for confusion, and private investors are footing hefty bills for IBC infrastructure. While the UK leads the pack, growth from Germany and the US is picking up as the market diversifies. Meanwhile, Egypt still faces brain drain, with more students opting to study abroad despite the local push.

The government is also exploring stricter regulation of foreign teachers in Egypt, evaluating a proposal from the Teachers Syndicate to require foreign educators to obtain licenses before working in international schools or tutoring centers. The plan aims to verify qualifications, establish a comprehensive registry, and channel license fees into salary increases and infrastructure upgrades. While international schools are already monitored, critics say private tutoring centers and language institutes — where unqualified teachers often work — pose a bigger challenge. Rising operational costs and FX instability are also pushing some schools to reduce reliance on foreign teachers.

Speaking of private tutoring centers, the Ministry’s new AI platform seeks to shake things up: The ministry is piloting an AI-powered platform aimed at cutting reliance on costly private lessons. Accessible to students in public, private, and language schools via a code-based system, the platform offers interactive learning tools, progress tracking, and automated grading. Public school students can use it for free, while private school students will pay a small fee.

What’s next for national universities? Eight new national universities are set to open nextyear in locations including Cairo, Kafr El Sheikh, Sohag, and New Valley, bringing the total to 28. These institutions aim to address rising demand for affordable, high-quality education with programs aligned to labor market needs. While offering mid-range tuition fees and modern curricula, challenges like accreditation and rural-urban disparities persist. Private sector involvement could play a bigger role as the government explores incentives to boost investment in underserved areas.

Plans to ramp up investments in private education: Egypt is betting on golden licenses to reignite private education investment, fast-tracking approvals and lowering barriers with tax breaks and reduced land requirements. With demand surging, the goal is 1k new schools by 2030, but insiders warn that without legislative reform and inflation-adjusted policies, the plan may fall short.


2025

January: CBE to launch InstaPay remittances for Egyptians abroad

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

1 January (Wednesday): The minimum pension will increase to EGP 1.5k, and the maximum to EGP 11.6k

1 January (Wednesday): Launch of the urgent plan for the National Population and Development Strategy.

14 January (Tuesday): The 4th edition of the Egypt Economic Summit will take place.

28 January (Tuesday): Nigeria to inaugurate the USD 5 bn Africa Energy Bank in Abuja

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

January 2025: Bavarian Delegation visit to Egypt

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

7-10 April 2025 (Monday-Thursday): EFG Hermes One on One conference, Dubai, UAE

April 2025: Saxony Delegation visit to Egypt

May 2025: Egyptian Exporters Association (Expolink) exhibition, Italy

May 2025: French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6.

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

March 2025: Operation of phase one of the Amotope wind farm

EVENTS WITH NO SET DATE

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

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

1H 2025: The Egyptian-US Investment Forum.

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

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

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

2Q 2025: Safaga Terminal 2 to start operations

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2027

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

EVENTS WITH NO SET DATE

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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