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Staying cool for the summer

1

WHAT WE’RE TRACKING TODAY

Cairo pulls the plug on new F&B licences in heritage districts

Good morning, wonderful people. It’s a busy morning on the macro and energy fronts as the government lines up 40 LNG cargoes to keep the national grid online through the summer.

Cairo governorate is hitting the brakes on new cafe and restaurant licences in Helipolis, Maadi, Zamalek, and Garden City. Up on the North coast, the New Urban Communities Authority is offering up to a 50% discount on retroactive land fees for legacy North Coast developers.

ALSO- We dive into what’s going on with all these temporary listings on the EGX by state-owned companies.

***

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.***

Egypt retaps int’l bonds to sidestep global market jitters

Egypt raised USD 1 bn on the international debt markets by reopening a set of existing USD-denominated series, according to a disclosure on the London Stock Exchange. The country added a USD 500 mn tranche to notes maturing in 2033 at a yield of 9.45% on 26 March; a USD 250 mn tranche of 2029 notes at a yield of 7.60%; and another USD 250 mn tranche of 2030 notes at a yield of 8.63% on 7 April.

Tapping existing bonds was an “effective solution” to issuing new debt, given the challenges of entering international markets amid the war on Iran and Lebanon, a government official tells EnterpriseAM.

Where the money went: Proceeds from the issuance were used to help repay a EUR 1 bn Eurobond that matured in mid-April, “without impacting the country’s foreign reserves,” our source tells us.

SOUND SMART- A “tap” is when an issuer reopens a bond already sold and offers more of it with the same coupon and maturity, the new bonds merging straight into the line already trading. Sovereigns like to do this because it builds size in a benchmark without the cost or execution risk of launching fresh paper.

Cairo F&B freeze

From the Dept. of Smart Policy: Cairo Governorate has banned the issuance of new cafe and restaurant licences in Heliopolis, Maadi, Zamalek, and Garden City, according to a statement from the governorate. The decision — spurred by mounting complaints over noise, congestion, and the encroachment of businesses on residential areas — will effectively freeze the volume of F&B outlets in these areas at their current levels.

What to expect: The move is likely to reshape the F&B landscape in these upscale neighborhoods — driving up the resale value of businesses and venues with existing licenses. It could also drive some businesses to look at other districts.

PSA-

Bankers will get a long weekend next week after the CBE announced Thursday, 7 May as an official holiday in observance of Labor Day. Prime Minister Mostafa Madbouly had earlier announced the day off for both the public and private sectors.

WEATHER- We’re enjoying another breezy day in Cairo today, with a high of 29°C and a low of 17°C, according to our favorite weather app.

It’s even cooler in Alexandria, with a high of 24°C and a low of 14°C.


Meet EnterpriseAM MENA+, our new flagship newsletter covering the flows of capital, people, and ideas across the Middle East — and beyond it.

MENA+ covers AI and tech — and geopolitics, the war for talent, which BSD is on top (and who's gunning for them), the changing energy economy, new corridors to India and China, and much, much more.

What’s with the “+” in MENA+? We think one of the most powerful stories in the region is the *export* of ideas and capital not just to neighboring regions (Asia, the Stans) but to international financial centers. MENA countries are jockeying for position in the new global economy now taking shape, and we're going to shape that conversation.

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The big story abroad

The UAE’s decisionto leave Opec on 1 May is dominating the news cycle. The move is sure to create more uncertainty in the Gulf energy scene, which is already grappling with the friction of the US-Iran standoff and the blockaded Strait of Hormuz. Want to go deeper? We have extensive coverage in this morning’s EnterpriseAM UAE edition.

MEANWHILE- The US Federal Reserve will announce its decision on interest rates this evening (Cairo time). Pundits widely expect it to leave rates unchanged.

AND- Transatlantic unity was the main takeaway from King Charles’ address to the UScongress. The UK monarch urged the US to move away from isolation and highlighted the importance of Washington’s participation with Europe, Nato allies, and Ukraine, calling on the countries to “ignore the clarion calls to become ever more inward-looking.”

Drama in the tech world: Elon Musk’s legal feud with OpenAI founders is heating up after they faced off in court — the Tesla founder is claiming that the founders behind the ChatGPT maker broke pledges to remain a nonprofit AI research lab.

And speaking of OpenAI: Investor confidence in the AI boom wavered yesterday following OpenAI’s failure to meet its targets for users and revenues. OpenAI-linked firms, including Oracle and SoftBank, faced a market sell-off soon after, with some shares sliding over 4%.

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

In today’s issue: We dive into the coordination problem keeping Egypt’s logistics performance behind regional peers, and why a move toward shared data platforms is now more critical than adding more concrete.

From 7–9 May, the Somabay Endurance Festival returns to the Red Sea for Egypt’s leading multi-sport challenge, where swimming, cycling, and running meet one of the region’s most iconic coastal destinations.

This year also introduces a new racing venue and enhanced endurance course experience, elevating the competition and athlete journey even further.

In partnership with The TriFactory, Somabay continues to lead the way in sports tourism, active lifestyle experiences, and world-class events. Register here.

2

The Big Story Today

Fueling summer

The Madbouly government is lining up 40 LNG cargoes for May and June to cover increased power consumption during the summer months, a senior government official tells EnterpriseAM. Officials expect demand to rise as much as 6-7% year-on-year starting in June.

Monthly consumption sits in the 15-20 cargo range, our source tells us. Four additional emergency shipments are built into the plan to maintain a steady flow and can be used or rolled over the next month depending on demand, according to a separate report.

Most of the cargoes are coming from US suppliers, our source tells us. The Export-Import Bank of the US approved over USD 2 bn in export credit ins. earlier this month to support US LNG imports to Egypt through 2027 — backing contracts between the Egyptian General Petroleum Corporation and the global energy and commodities trading house Hartree Partners.

The plan will be to avoid hedging LNG, our source says, with the government opting instead to limit risk coverage to 50% of crude oil imports starting the new fiscal year, relying on the leverage of facilitated payment and settlement terms — made possible as Egypt scales up into one of the largest LNG importers.

DATA POINT- Natural gas made up 45% of our fuel import bill in 1Q this year, with imports totaling USD 2.5 bn between January and March, Al Arabiya reports. May’s shipments are expected to cover some 23-26% of local demand, equivalent to around 1.5-1.7 bcf / d of natural gas.

REMEMBER- Our natural gas import bill will jump 26% y-o-y to USD 10.7 bn next fiscal year. The government is allocating the funds to import 18.7 mn tons of gas to cover domestic demand of roughly 7 bcf / d. The budget will cover a mix of LNG cargoes and pipeline gas from Israel. The gas imports coming in from our eastern border are also set to get a 100 mmcf / d boost, reaching some 1.15 bcf / d starting May, we’re told.

Where we stand: Our natural gas production has been decreasing in the past few years, falling to 3.06 bcf / d last February, down 50% compared to its peak of 6.13 bcf / d in March 2021, according to data from the Joint Organizations Data Initiative (JODI). To hit its target of 6.2 bcf / d by 2027, the government will need to double the output — a big order despite new seismic surveys and sweetened investment incentives.

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3

Real estate

A 50% break on the Sahel squeeze

The New Urban Communities Authority (Nuca) is slashing retroactive land assignment fees by up to 50% for North Coast projects allocated before February 2024, two government officials tell EnterpriseAM. The authority will instead calculate the levies based only on the built-up area. The exact reduction — between 10-50% — will depend on each project’s master plan and footprint, sources tell us.

New projects allocated after February 2024 remain subject to a fixed flat fee of EGP 1k per sqm on the total land area, without the built-up area deduction, our sources confirm. Foreign developers will pay USD 20 per sqm, they say.

The mechanics: The new framework still requires developers to make a 20% upfront payment, with the remainder paid in installments over five years at a 10% interest rate. The original landowner is liable for the fees, not the sub-developer, we’re told.

IN CONTEXT– Nuca has collected roughly EGP 15 bn of its EGP 45 bn target so far, including EGP 6 bn from Mountain View and EGP 4 bn from Sodic, primarily for land allocated after the February 2024 cutoff, we’re told. The framework targets 83 companies to settle their dues, with 19 local firms reportedly having already paid the first 5% of the down payment.

Looking forward: Nuca is still reviewing petitions from foreign firms with local arms that are asking to settle their USD-denominated dues in EGP, we’re told.

Behind the move

This could be a peace offering. The gov’t was “prompted to re-evaluate,” one government official tells us, after noticing developers allocated land before February 2024 “sold a significant portion of their units at prices lower than what other companies would be able to charge to offset cost differences.”

And it comes on the back of another compromise. The government offered to ease payment terms last October on “improvement fees” introduced last summer after the real estate sector lobbied against the sudden burden. The move allowed developers to stretch the 20% down payment over a full year and capped the remaining interest at 10% instead of the higher Central Bank of Egypt benchmark rate.

4

Capital markets

The IPO waiting room

The state IPO program is moving into a more deliberate, almost pre-emptive phase. The government is preparing to temporarily list the Egyptian General Company for Tourism & Hotels (Egoth), a state-owned legacy player in domestic tourism, and is studying the potential sale of a stake in Misr Travel, a government official tells EnterpriseAM.

It’s the latest in a series of so-called “temporary listings” on the bourse about which Cabinet has made a lot of noise in recent months.

So, what’s a temporary listing, exactly? Think of it as a technical staging step where an IPO-hopeful is registered and assigned a ticker — effectively holding a spot on the exchange but not trading yet. In other words, its shares aren’t floated, no prospectus has been filed, and there’s no fair value study underway, CI Capital head of research Monsef Morsy tells EnterpriseAM.

Not every company with a temporary listing will necessarily make it onto the trading floor, Morsy tells us. In this geopolitical climate, the final decision to trade will depend almost entirely on macro dynamics in addition to “the company's sector, its level of profitability, and the performance of management,” he says.

We see the recent listing drive as a bid to keep forward momentum visible and the International Monetary Fund on-side. The move is part of a broader push to expand the state’s temporary listing roster to around 30 companies before the fiscal year ends in June. Investment banks including EFG Hermes, CI Capital, Al Ahly Pharos, and Arqaam Capital are reportedly advising on issuances under the program. The listings are part of the so-called “fourth phase” of the state’s asset monetization program, which has so far delivered just 7.5% of its USD 1.9 bn target.

The workaround

Temporary listings are a workaround of sorts to a big bottleneck in the IPO process. “It cuts short the timeframe needed to handle the logistics [of an IPO],” Morsy tells us. By pushing 20-30 companies through the listing process now, the government is front-loading the regulatory work, he explains. If the window opens for an actual offering, they’re not starting from scratch — they’re already halfway there.

In real terms: This is just an administrative green light. “The temporary listing is just the starting point for paperwork. When they decide to proceed with an actual IPO, they will appoint an independent financial advisor to value the company and an investment bank to handle the IPO process,” Morsy says — paving the way for marketing of the transaction to investors on roadshows and the like.

Coding the shares is the moment a closed company becomes structurally open to the public, Al Ahly Pharos head of research Hany Genena tells EnterpriseAM. Whether the endgame is a capital increase (a new investor pumping in fresh equity, diluting the state) or an exit by existing shareholders (the government cashing out), this coding is a necessary first step.

The catch

Temporary listings have a shelf life — and come with zero promises that a sale of equity will take place. Temporarily listed companies have a six-month window (it can be extended) to move forward with an IPO. They’re back to square one if they miss it.

REFRESHER- This whole setup leans on regulatory tweaks made by the FRA in 2022 that made it easier to get onto the EGX. Companies no longer need prior FRA approval to temporarily list, as long as they meet a stricter governance checklist. That includes minimum female board representation (25%), cumulative voting to protect minority shareholders, separating the Chairman and MD roles, and capping authorized capital at 5x issued capital.

Meet the (latest) hopefuls

Misr Travel and Egoth are both owned by the Holding Company for Tourism, Hotels and Cinema. Set up in 1976, Egoth is a hospitality asset manager with a portfolio of some seven hotels across the country, including Cosmopolitan Hotel, Cleopatra Hotel and Shepheard Hotel. Misr Travel, founded by Talaat Harb in 1934, is a travel agency managing hotel bookings, transportation services and trips across the country, as well as in Jordan. Despite the lack of granular detail on these specific firms yet, the tourism sector is “one of the key sectors” investors will likely find attractive, Morsy tells us.

The IPO tape has been padded with names. El Nasr Housing, Sinai Manganese, and Spring and Transport Equipment Manufacturing are players across petrochemicals, metals, construction and the public business sector, all of which likely “tick most of the boxes — are already profitable in a sector with potential,” Morsy says. Temporary listings of the Egyptian Contracting Company - Mokhtar Ibrahim, Misr Company for Sound and Light, Commercial Company for Wood, and El Nasr Salines are also proceeding, a senior government official tells EnterpriseAM.

Think of it as a menu (or a hedge), not a schedule: By listing multiple companies from a range of sectors, the government is building optionality, Morsy tells us. The state isn’t locking in a sequence because it’s dealing with “continuous changing in the overall [macro] dynamics,” he says. In simple terms: If it finds an investor interested in Company “X,” the time from, “Hey, I like that” to “Sold” will be faster if the firm already has a listing.

So, instead of banking on one sector, it’s “opening up every sort of company or opportunity” so they can “decide at a later point which of the companies they’ll start with” based on where demand actually shows up, he said, adding that “the selection will depend mainly on the macroeconomic situation, which is relatively uncertain regarding commodities, oil prices, and even transportation costs.”

Who’s most likely to sell? Companies with “exposure to the domestic market and less sensitivity to what’s happening externally” are more likely to make a dash out onto the trading floor — especially those not heavily reliant on imported inputs, Morsy tells us, pointing to the financial services and fintech sector as the contenders.

5

Investment Watch

Doorknock Mission draws to a close

The demand is there, what do we need to do to reel it in? That was one of the main questions tackled during the AmCham-ogranized Doorknock Mission to Washington that concluded just days ago.

CATCH UP- EnterpriseAM brought you almost day-by-day coverage as the mission was happening — check out our coverage of what the government is doing to better align with the priorities of the American and Egyptian markets, why now’s the time to bring Africa to the table, and how we’re navigating a moment of simultaneous regional security realignment and shifting influence in Washington.

A packed agenda reflects deep engagement: The mission had a packed schedule in DC, including meetings with US government officials, think tanks, members of Congress, international institutions, and other events on the sidelines. The dozens of meetings held reflect an expansion of institutional outreach with decisionmakers, providing a platform to present Egypt’s economic priorities.

Looking at the glass half full: Discussions pointed to a growing view that current geopolitical and economic disruptions may create a significant avenue for Egypt to attract industries and companies looking to relocate. “The capital is actively looking for more stable destinations, and Egypt could be well-positioned if it moves quickly,” President of AmCham Egypt Omar Mohanna notes. Data centers were highlighted as a key prospect, with Egypt seen as a potential destination despite energy constraints.

To reel in those searching for a new home, we need to accelerate reforms, improve the investment climate, and offer greater flexibility.

Connecting with the next generation of business leaders: In parallel, the chamber’s Washington office launched a new Youth Committee — led by Ibrahim Rostom — targeting Egyptian students in the US. The committee will offer mentorship programs with chamber members, fireside-style discussions to share success stories, and practical avenues including internships and professional workshops. “The goal is to connect young Egyptians abroad with the business ecosystem and prepare a new generation of leaders,” Rostom said.

Finance, reform, and competitiveness

“The global landscape reveals a clear gap in export and investment support tools,” Mohanna says, noting that while European countries rely on established export credit agencies, the United States has only recently reactivated its role through the Development Finance Corporation (DFC). “The US is only now returning through its development finance arm, with around USD 205 bn available globally on a first-come, first-served basis,” he adds.

DFC entry could be a game changer: “Once the institution enters a project, it reduces risk and effectively elevates the credit rating to AAA levels,” AmCham member and former chamber president Tarek Tawfik explains. “But we need bankable projects and a regulatory environment capable of absorbing this type of financing,” Tawfik adds, stressing that capturing these chances depends on having a pipeline of viable investments and the institutional readiness to execute.

We’re seeing reform progress — but gaps remain: “The IMF’s assessment points to strong progress across several reform pillars, including monetary policy, customs reform, tax reform, and public finance management,” Mohanna says. “However, the Fund sees that key challenges remain in privatization and state divestment, the persistence of a large informal sector, and the lack of a level playing field,” he explains.

And on the macro front: “Achieving a primary surplus of around 2% reflects a marked improvement after years of consumption-driven spending,” Tawfik says. “Previous policies that focused on supporting the currency without addressing inflation led to a depletion of foreign currency resources and created structural imbalances that took time to unwind,” he notes.

Stable external positioning with technical challenges: “Egypt’s overall positioning remains broadly positive, particularly in how it is perceived by international partners,” Mohanna says. “At the same time, there are still some technical issues that require additional expertise and policy work, including alignment with US automotive standards, which is now nearing resolution,” he adds.

6

Startup watch

Tripix hits the streets

Local smart-transport startup Tripix has launched its transportation platform and plans to expand domestically through 2026, co-founder Dina Abdelkarim tells EnterpriseAM. The platform was built with private local funding of an undisclosed amount, and has “enough [funding] to reach full proof-of-concept and strongly penetrate the corporate market,” she says.

The timing gives Tripix a bigger opening — but this wasn’t built overnight. The launch lands as some smart transport platforms have recently exited or scaled back in Egypt, creating a larger market gap to fill, according to Abdelkarim. “Tripix is not a project born of the moment or of new market conditions,” she says. “We have been working on Tripix for two years, with several market studies and feasibility studies behind it.”

The corporate segment is the startup’s “revenue backbone,” giving the platform recurring and more predictable revenues, Abdelkarim says. But the company wagers corporate transport and individual ride-hailing should not be treated as separate businesses. “The traditional separation between B2B and B2C in transport is a market gap, not operational wisdom,” she tells us.

AI is also a large component of reducing corporate client’s operating expenses. “One of the corporate clients in the pilot was experiencing ‘empty trips’ — vehicles taking long routes to pick up employees in widely separated areas without any real coordination. The system analyzed weekly booking patterns and suggested restructuring pick-up areas and trip timings leading to a decrease in daily mileage without losing employees served,” Abdelkarim says.

The company ran actual fleets for schools and corporates during its pre-launch phase to test the platform against real-world transport needs. The goal was to offer “a real, integrated solution — not just a nice-looking app that hides and ignores a major logistical and informational gap,” Abdelkarim tells us.

What’s next? The startup’s next funding round is being prepared with the goal being “not survival, but acceleration,” including geographic expansion, AI investment, and scaling the corporate sales team, Abdelkarim tells us.

7

Also on our Radar

Pay for your EV home charger in installments

Infinity, XPRS launch installment plans for EV home chargers

You can now buy EV home charging stations with a manageable monthly bill: Local EV charging specialist Recharged by Infinity has partnered with electronics retailer XPRS to offer home charging stations and accessories on zero interest and zero down payment installment plans over 18 months via Valu, according to a joint statement(pdf). The move follows Infinity and Valu testing the waters back in December by offering short-term, six-month buy now, pay later plans for home EV chargers during the EVs Electricity expo.

ICYMI- Earlier this week, Infinity partnered with EFG Corp-Solutions on the country’s first-ever leasing agreement for charging solutions. While the XPRS agreement targets the individual homeowner, the leasing play helps real estate developers turn a heavy fixed cost into a manageable operating expense.

Mido secures mezzanine debt financing from Vantage Capital

Coatings manufacturer International Group for Modern Coatings (Mido) is tapping alternative financing to “unlock its production capacity.” It secured USD 45 mn in mezzanine debt financing from Vantage Capital that will be used to refinance existing debt and provide working capital to scale production, according to a statement from the Africa-focused debt fund manager. The transaction marks Vantage Capital’s third investment in the country and is “among the largest mezzanine debt transactions in the country’s history.”

Why this matters: Vantage’s investment is a sign of a wider move by investors looking for companies in Egypt that earn hard-currency revenues. Mido exports to over 50 countries and acts as a contract manufacturer for global paint giants like Nippon Paint, which means that much of its revenues are decoupled from the EGP while still benefiting from the country’s low-cost industrial base.

Advisors: Matouk Bassiouny and Werksmans acted as counsel to Vantage, while Adsero was counsel to Mido. Vantage’s consortium of advisors also included PwC Middle East, Emerton, and SLR.

Another day, another SCZone agreement

Alpha Smart inked an agreement to build a USD 100 mn integrated industrial complex in the Suez Canal Economic Zone, according to a statement. The facility will be built over 500k sqm over two phases and will reportedly attract an additional USD 150 mn in industrial investments.

(You know SCZone is doing well attracting investment when we’re this blazé about a USD 100 mn ticket…)

Egyptian-Emirati alliance to launch USD 500 mn mixed-use portfolio

Local developer Delta Capitalfor Urban Development has partnered with Emirates Global Real Estate Investment to launch a USD 500 mn portfolio of mixed-use projects across Egypt, Zawya reports. Construction will begin in 2027. The 500-acre portfolio will span residential, commercial, and service projects in Cairo, Kafr El Sheikh, and El Mahalla El Kubra.

8

PLANET FINANCE

Muted 1Q for MENA debt markets

MENA bond issuance fell 12% y-o-y to USD 48.1 bn in 1Q 2026 as escalating geopolitical tensions cooled market activity, according to LSEG data. The number of issuances fell 11% y-o-y, with the GCC market effectively grinding to a halt in March as the regional conflict broke out. Issuances were already subdued because of Ramadan starting in mid-February, but sentiment and activity took a bigger hit throughout March, with USD-denominated sukuk and bond sales from the GCC broadly muted for most of the month.

A quarter of two halves: “Issuance dynamics were uneven over the quarter. January saw robust activity, while February was broadly in line with seasonal norms, despite coinciding partially with Ramadan,” said Bashar Al Natoor, Fitch Ratings’ global head of Islamic finance. The post-Ramadan rebound that markets typically see was undermined this year, making March activity “materially weaker,” Al Natoor said.

REMEMBER- A war premium brought a record-breaking start in GCC borrowing activity to a halt as regional markets began pricing at a war premium following the outbreak of the conflict with Iran, Fitch Ratings previously said. Regional debt markets had been on track to break the USD 1.25 tn mark this year, up from USD 1.1 tn in issuances last year, but a 20-30 bps rise in spreads made borrowing costs just high enough to make most issues uneconomical in the near term.

Saudi Arabia was in the lead before activity stalled: The Kingdom accounted for some 58% of total bond proceeds raised during the quarter, and was home to the two largest issuers by value, the data shows. Saudi Arabia raised USD 32.54 bn across 42 issuances, Kuwait Financial Center (Markaz) said in a report earlier this week. That activity includes a USD 11.42 bn four-tranche bond sale in early January, as well as Saudi Aramco raising USD 3.95 bn. Meanwhile, the UAE accounted for 27% of all activity during the quarter, with the Abu Dhabi government raising USD 2.99 bn.

The top 10 leaderboard tells the story: Nine of the quarter’s 10 largest MENA bond transactions closed in January, with just one issuance — Abu Dhabi’s February sale — making it into the top 10. Saudi issuers took seven of the top 10 spots, including the Saudi Electricity Company (USD 2.4 bn), Saudi Telecom (USD 2 bn), and Riyad Bank (USD 1 bn). The Kingdom of Bahrain (USD 1.3 bn), Kuwait Finance House (USD 1 bn), and Emirates NBD (USD 1 bn) rounded out the list. All 10 of the largest issuances were USD-denominated.

Corporate issuances took the lead, raising USD 32 bn during the quarter, while sovereigns and agencies raised USD 16 bn. Financial institutions accounted for 44% of total proceeds, according to the data. Meanwhile, Islamic bond issuances in the region fell 17% y-o-y to USD 14.6 bn, accounting for 30% of total bond proceeds — the lowest share in three years.

A recovery in issuance activity hinges on geopolitics and how the conflict develops from here. “The key challenge at present is the uncertainty surrounding the duration and trajectory of the conflict,” Al Natoor said. “Until there is greater clarity on whether tensions stabilize, escalate, or persist, visibility on the timing and strength of any recovery in issuance activity remains limited.”

That recovery hasn’t quite materialized yet: ADX-listed healthcare provider Burjeel Holdings put a planned USD 1.5 bn Islamic bond issuance on hold due to the war and weaker market conditions. “Spreads have changed,” CEO Shamsheer Vayalil said earlier this week.

MARKETS THIS MORNING-

Asia-Pacific markets are mixed in early trading this morning, as investors digest the tech selloff on Wall Street a day earlier, triggered by OpenAI missing its 1Q targets. Investors will be watching closely for the US Federal Reserve’s interest rate decision as the central bank concludes its two-day meeting later today.

EGX30

52,231

-0.9% (YTD: +24.8%)

USD (CBE)

Buy 52.78

Sell 52.92

USD (CIB)

Buy 52.78

Sell 52.88

Interest rates (CBE)

19.00% deposit

20.00% lending

Tadawul

11,180

+0.1% (YTD: +6.6%)

ADX

9,836

+0.1% (YTD: -1.6%)

DFM

5,858

-0.2% (YTD: -3.1%)

S&P 500

7,139

-0.5% (YTD: +4.3%)

FTSE 100

10,333

+0.1% (YTD: +3.8%)

Euro Stoxx 50

5,836

-0.4% (YTD: +0.7%)

Brent crude

USD 111.26

+2.8%

Natural gas (Nymex)

USD 2.68

-0.4%

Gold

USD 4,611

+0.1%

BTC

USD 76,345

-0.9% (YTD: -12.9%)

S&P Egypt Sovereign Bond Index

1,044

-0.2% (YTD: +5.2%)

S&P MENA Bond & Sukuk

151.72

0.0% (YTD: -0.1%)

VIX (Volatility Index)

17.83

-1.1% (YTD: +19.3%)

THE CLOSING BELL-

The EGX30 fell 0.9% at yesterday’s close on turnover of EGP 8.9 bn (24.2% above the 90-day average). Local investors were the sole net buyers. The index is up 24.9% YTD.

In the green: Kima (+3.2%), Qalaa Holdings (+2.2%), and Heliopolis Housing (+1.4%).

In the red: Eastern Company (-3.4%), GB Corp (-2.3%), and Raya Holding (-2.2%).

9

HARDHAT

Egypt needs better logistics coordination, not just more ports

Egypt’s logistics build-out is running into a coordination problem. The Madbouly government has spent years building out ports, logistics zones, and maritime infrastructure — but the bigger question now is why that build-out is not yet translating into smoother trade flows and a bigger FX payoff, according to a recent report from McKinsey. The firm sees transport and logistics as one of the sectors that could materially improve the country’s trade balance by 2035, but only if the next phase of investment is less on adding more assets and more on getting the system to move better.

Parts of the system are performing well

The transport and logistics market is expected to grow from USD 26.9 bn in 2023 to USD 36.9 bn by 2028, according to the report, and the country is hardly short on maritime assets. Egypt has 18 commercial ports, more than 40 river ports, and over 2k km of navigable waterways, and of course, the Suez Canal, handling some 12% of global trade. The SCZone should, on paper at least, make that footprint even more valuable — McKinsey notes that the zone sits “directly on the world’s main East-West trade route” and already has six operational ports and a growing tenant base.

Egypt ranks 57th on the World Bank’s Logistics Performance Index, behind Saudi Arabia’s 38th place and the UAE’s 7th place, as “despite significant investment in port improvements, Egypt’s ports are currently only using about 68 percent of their container capacity.” That makes this less a story about building more ports and more a story about why the existing ones are not pulling more trade, more value-added, and more FX through the system.

Five Egyptian ports ranked in the 2024 Container Port Performance Index, including Port Said, which came in third globally, McKinsey writes. So the report is not arguing that Egypt’s ports are broken. It argues that there are “several examples of best practice to draw on,” even as the broader system still needs “better governance and operational efficiencies to deliver faster, more reliable services.” That is a much more interesting place to start: Egypt already has ports that can compete — it just does not yet have a logistics system that consistently does.

The real bottleneck begins here

The country’s logistics and warehousing footprint is “geographically isolated,” McKinsey says, with facilities spread out in ways that create avoidable inefficiencies. The fix the firm suggests is to standardize layouts and operating procedures, connect facilities through shared IT infrastructure, and use a federated platform that lets operators see where capacity sits across the network. That is how goods get stored closer to demand centers — and how the system starts cutting delays and costs instead of simply adding more space.

Rail is another weak point. The report says Egypt can speed container movement through “reliable, dedicated rail links” between ports and inland dry ports, alongside shuttle services that move cargo on fixed schedules instead of leaving it to compete with passenger traffic. The key phrase in the report is “protected freight paths adhering to strict, fixed schedules” — because until rail becomes predictable, it is hard for time-sensitive operators to treat it as a serious logistics backbone rather than a nice-to-have.

That also explains why the next phase of logistics investment looks less like another mega project and more like coordination work. The firm argues that “immediate low-cost gains can be achieved” through standard operating procedures, data sharing, and slot-management scheduling that aligns shipping and rail timetables. In other words, Egypt’s logistics problem is not just about moving more cargo. It is about getting the system around the cargo to finally move in sync.

Cold-chain gaps are leaking value

The report flags cold-chain infrastructure as one of the clearer places where logistics weaknesses are bleeding directly into export performance. Egypt’s cold storage capacity, at roughly 3 mn cbm, is “undersized” against broader African benchmarks, while warehouse scale is often too small to meet the needs of modern supply chains. The firm also points to missing specialized capacity — including ultracold storage for products like vaccines — alongside the added risk from power instability. In a system like that, moving perishables efficiently stops being just a transport issue and becomes a reliability issue.

That matters because the country’s agribusiness upside is tied to reducing waste and preserving value deeper in the supply chain. The report cites studies showing significant value losses in fresh produce, attributing them to “high spoilage rates for perishables such as grapes and tomatoes along the supply chain,” and argues that some of the quickest gains could come from “modern packhouses, refrigerated storage, and stronger quality control systems.”

The logistics fix is fairly straightforward. The report calls for “grid-secured cold parks” near major producer belts and key airports and ports, alongside multitemperature reefer fleets and cross-dock facilities that can hold temperature through transfer and transport. That is not the kind of infrastructure that grabs headlines like a port expansion or a new logistics zone. But it may be closer to where the next chunk of FX gains actually sits: protecting higher-value exports from spoilage, delays, and power-related losses before they fall out of the system.

Whatever issues exist, Egypt does not need to start from scratch. The building blocks are already there, and in some places they are working well. What is missing is the connective tissue. “Shared infrastructure can change the slope of performance,” whether that means “one-stop shops” in the SCZone for sectors like FMCGs, pharma, and electronics, or a “federated digital platform linking logistics zones” so operators can finally match storage, transport, and demand across the network.


2026

MAY

1 May (Friday): Labor Day.

5 May (Tuesday): S&P Global to release PMI figures for April.

7 May (Thursday): Labor Day national holiday observed.

7 May (Thursday): CBE expected to release foreign exchange reserve data for April.

10 May (Sunday): Capmas expected to release inflation data from April.

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

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

JUNE

15 June (Monday): Seventh review of the IMF’s Extended Fund Facility.

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.

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

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

July 2026: British Prime Minister Keir Starmer set to visit Egypt.

2H 2026: Operations at Deli Glass Co’s new USD 70 mn glassware factory kick off.

2026: The Egyptian-American Economic Forum.

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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