Suez Canal transit could pick up early next year

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What We're Tracking Today

Egypt looks to raise USD 1.5 bn from selling stakes in state-owned companies this FY

Good morning, folks and happy Thursday. We wrap up the week with a packed issue led by predictions of when we can expect Suez Canal traffic to pick up — sources tell us we can expect vessels to once again start passing through the canal early next year now that regional tensions are cooling following the Israel-Hamas ceasefire agreement.

ALSO IN TODAY’S ISSUE- Finance Minister Ahmed Kouchouk unveiled a fresh privatization target for the fiscal year and the Madbouly government has extended its subsidized loan program to support industry, agriculture, and renewables players.

WATCH THIS SPACE-

#1- The Madbouly government is looking to raise USD 1.25-1.5 bn by offering up stakes in four state-owned companies by June, Finance Minister Ahmed Kouchouk told CNBC Arabia (watch, runtime; 14:11). At least half of the proceeds will go toward reducing government debt, which will help support the government’s efforts to reduce debt by 10% of GDP over two years.

The ministry is also planning two more international issuances this year. One will be a conventional issuance, while the other could either be a labeled bond — think green, blue, or sustainability bond — or an issuance in a foreign market, like a Panda or a Samurai bond. Total issuances for the year will total USD 4 bn — just like last year — Kouchkouk added.

#2- Could we soon see Chinese banks and financial institutions set up shop in Egypt? The Central Bank of Egypt (CBE) and China’s National Financial Regulatory Administration — which both supervise the banking sector in their countries — agreed to work toward licensing each other’s banks and financial institutions to operate in their respective countries under an MoU, according to a statement (pdf) from the CBE.

The MoU — which also covered a wide range of areas for cooperation — follows a similar one with the People's Bank of China signed in July, which laid out the intention to boost local currency use when it comes to settling cross-border transactions and exchange information and professional expertise in monetary policy, financial markets, electronic payment systems, and more.

Allowing Chinese banks to operate in Egypt — and making it easier for Chinese companies to trade in CNY — seems like an obvious thing to do. There’s been a substantial uptick in Chinese manufacturers setting up projects in Egypt, major Chinese financial institutions including the Industrial and Commercial Bank of China are involved in financing key projects including the new capital, and there’s the ongoing push in some corners for countries to trade in currencies other than the greenback.

#3- We could wrap up another debt swap with European partners before the end of 2025, Planning Minister Rania Al Mashat told Reuters on the sidelines of the IMF and World Bank annual meetings in Washington. More swaps are in the pipeline for next year, Al Mashat said, describing the mechanism as a tool for “liability management” and a way to ease fiscal pressure.

EQUAL TIME-

The International Finance Corporation “currently … does not have plans to issue an EGP-denominated bond in Egypt,” the World Bank’s private sector-focused arm told us yesterday in response to a story we published in yesterday morning’s edition. Our report cited a senior government official who was speaking with us on the condition we not use their name.

The claim: Our source told us the government had given the IFC the green light to resume its EGP-denominated bond program plan. The program would be designed to provide affordable liquidity to the private sector (have you checked interest rates lately?) while spurring activity in the public debt market.

An IFC spokesperson told us after our report yesterday that the institution is “committed to supporting Egypt’s economic resilience and private sector growth,” which it will do by “working with government partners and financial institutions to strengthen local capital markets, improve access to local currency financing, and mobilize private investment aligned with Egypt’s development goals.”

We’ll continue watching this space: Speaking again after the IFC told us it had no current plans to issue a bond, our source said an issuance is contingent “simply on some procedures” the Madbouly government is currently finalizing.

DATA POINT-

Egypt welcomed 15 mn tourists in the first nine months of 2025, up 21% y-o-y, putting it on track to reach its 17.5-18 mn year-end target, Tourism Minister Sherif Fathy told Asharq Business.

IN THE HOUSE-

The House will meet today to discuss presidential objections to several articles of the draft Criminal Procedures Law. A special committee tasked with reviewing the articles objected to by President Abdel Fattah El Sisi approved, in principle, all the recommendations.

REMEMBER- The president sent the draft Criminal Procedures Law back to the House last month to address objections over several articles, including those tied to governance, clarity, and practicality. We dove into some of the key provisions of the draft law in our previous coverage — check it out here.

The Senate will reconvene on Saturday, ready to kick off the first session of its new legislative term.

HAPPENING TODAY-

#1- It’s day four of the World Bank and IMF annual meetup in Washington. Dominating the narrative on the meetings this morning is the fund’s warning that global sovereign debt will hit 100% of GDP by 2029 — the highest since 1948 — according to its latest Fiscal Monitor report (pdf). But there’s good news for Egypt in the report, with debt to GDP expected to fall from 87.0% in the previous fiscal year to 72.5% by the fiscal year 2029-30.

ALSO FROM THE REPORT- The report sees Egypt’s overall fiscal deficit narrowing from 12.4% of GDP last fiscal year to 3.5% by the fiscal year 2029-30, with the general government net debt-to-GDP ratio on a similar downward trajectory — from 82.3% last fiscal year to 67.9% in the fiscal year ending in June 2030.

Planning Minister Rania Al Mashat argued yesterday that the recently launched National Narrative for Economic Development is a continuation of Egypt’s reform program during her speech at a meeting of G24 ministers, according to a ministry statement. With Egypt’s Extended Fund Facility agreement with the IMF coming to a close in October 2026, many investors and partners are eager to know what route the country will take once it loses the fund as a policy anchor. In the months to come, we expect the cabinet economic team and the central bank to be hammering the line that the reform agenda is here to stay.

Al Mashat also took part in the World Bank Group’s Arab board of governors’ meeting, during which she highlighted the importance of “regional integration to address development challenges” and the World Bank supporting the private sector in member states. Al Mashat will return to the stage today as part of the Leaders’ Speaker Series.

#2- Cairo Water Week will wrap up later today, putting an end to this year’s annual event to discuss innovative solutions for climate resilience and water sustainability at New Cairo’s Triumph Luxury Hotel. The event’s packed schedule included workshops, exhibitions, and sessions around adaptation to climate change, water resource management, nature-based solutions, and sustainable infrastructure. The event also hosted competitions for young inventors and showcased new technologies aimed at advancing the water sector in Egypt and the region.

PSA-

WEATHER- It’s another cool day in Cairo, with a high of 28°C and a low of 19°C, according to our favorite weather app.

It’s more or less the same in Alexandria, with a high of 27°C and a low of 18°C.

CIRCLE YOUR CALENDAR-

Owners of unauthorized buildings will get more time to legalize their properties after the Madbouly cabinet approved extending the deadline for submitting reconciliation requests for certain building violations by an additional six months starting 5 November.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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THE BIG STORY ABROAD-

The tenuous Israel-Hamas peace agreement is still dominating headlines, as Hamas returns more bodies of hostages and says it has now returned all the bodies it is able to reach, and needs more time and specialized equipment to recover others. Meanwhile, Israel has threatened to return to war and “defeat Hamas” if it does not uphold its side of the agreement, which also includes Hamas’’ total disarmament. Some 19 bodies have yet to be returned. (Bloomberg | BBC | Financial Times)

Meanwhile, sources said work has already begun on an international stabilization force that would go to Gaza and stabilize security amid tensions between Hamas and Israeli militants in the strip. The US is in talks with officials from Indonesia, the UAE, Egypt, Qatar and Azerbaijan, on their involvement as part of the force. (Reuters)

ALSO GETTING ATTENTION- US President Donald Trump is threatening to launch military strikes in Venezuela, after authorizing the Central Intelligence Agency to conduct covert strikes there as part of a campaign against drug trafficking. (Wall Street Journal | Guardian | New York Times)

PLUS- Levels of carbon dioxide surged at record levels in 2024, as record additions of renewable energy capacity failed to put the world on track to meet its climate targets for 2030, a report by the International Renewable Energy Agency said. The ongoing burning of fossil fuels, along with a surge in wildfires, are to blame, IRENA said. (Reuters | Guardian)

From October 12–16, Somabay hosted the Somabay World Cup for the first time in Egypt, welcoming 173 participants from 19 countries to its signature Red Sea course. The tournament spotlighted Egypt’s growing presence on the global golf map, set against Somabay’s year-round sunshine, luxury resorts, and world-class sports and leisure scene.

Suez Canal transit could pick up early next year

Suez Canal transit is projected to pick up in early 2026 — driven by the easing of regional tensions and a positive regional growth forecast from the IMF, Chamber of Commerce’s International Transport and Logistics Division Secretary General Amr Al Samdoni told EnterpriseAM. Shipping lines have been encouraged by the Israel-Hamas ceasefire agreement and are “developing quarterly plans” on the premise that the war and Houthi attacks cease completely, he added. The ease in tension will force shipping players to return to the shipping channel, Al Samdoni predicts, in a bid to speed up supply chains and the arrival of goods.

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

But shipping lines will still wait for “at least three months of stability and security in the waterway” before making concrete plans to return, Al Samdoni said. Shippine lines are still cautious about returning to the Suez Canal and are waiting for “all safety measures to be in place,” a shipping agency source told EnterpriseAM.

The expected return of traffic to the Suez Canal would be welcome news for the country’s FX reserves and overall revenues, as well as contributing to an easing of global inflation, Al Samdoni told us. Transfers through the Suez Canal would ease global shipping costs and time, as it “guarantees a transit time of 28 to 30 days — vessels used to take between 60 to 70 days when traveling via the Cape of Good Hope.”

Al Mashat’s take: “My expectation would be that [the canal’s] contribution (to growth) is at least zero, not negative anymore by June of next year … We might be surprised on the upside again, depending on how fast trade can come through the canal,” Planning Minister Rania Al Mashat told Reuters.

REMEMBER- Suez Canal receipts fell 45.5% y-o-y to USD 3.6 bn during the previous fiscal year, with net tonnage down 55.1% and vessel transits falling 38.5% amid Red Sea disruptions.

Shipping agencies want a little extra push: Shipping agencies are seeking incentives, Egyptian International Air Freight Forwarders Association (FIATA) VP Ahmed Mustafa told EnterpriseAM. The Suez Canal “should listen to agencies’ demands and offer incentives not only on transit fees but also for logistics services across the corridor to attract investments,” he added.

…but incentives are already in place: The Suez Canal Authority extended its 15% reduction on container ship crossing fees until the end of 2025 in a bid to encourage traffic through the strait. The canal also introduced a markdown on container vessels with a net load over 130k tons back in May — initially for 90 days.

The Red Sea route is already seeing some healthy signs of return, with Suez Canal transits growing by some 33% y-o-y so far this year, Baltic and International Maritime Council (Bimco) Chief Analyst Niels Rasmussen told TradeWinds in September. “The ratio between deadweight transiting the Suez Canal and the Cape of Good Hope has year to date increased to 1.44 from 1.09 in 2024,” Rasmussen said.

Egypt extends subsidized loan program to support industry, agriculture, renewables

Gov’t extends agriculture and industry support initiative: The finance and industry ministries have approved a new EGP 90 bn program of subsidized loans for industrial, agricultural, and renewable energy players for the current fiscal year, according to a statement.

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

The details: The program will offer financing at an interest rate not exceeding 15% for industrial, agricultural, and renewable energy activities. Some EGP 80 bn will be allocated to working capital financing, while EGP 10 bn will be earmarked for purchasing machinery and equipment.

This year’s package is smaller than last year’s EGP 120 bn initiative, which carried the same 15% interest rate — well below the central bank’s current 22% lending rate. However, it remains 4 percentage points higher than the 11% rate applied under the 2023 program.

The price tag: The interest rate differential under this round of the initiative will cost the state treasury around EGP 8 bn this fiscal year.

How it works: Local banks will disburse the loans to those eligible and in return receive the difference between the 15% rate and the corridor rate from the Finance Ministry.

REMEMBER- The CBE had halted its low-interest financing programs for industrial, agricultural, and contracting companies in 2022, transferring their management to the relevant ministries in line with IMF requirements.

Nawy, MFIC raise EGP 443 mn in region's first Ijarah-backed mortgage fund

Nawy, MFIC close Egypt’s first-ever Ijarah-backed mortgage fund: Proptech firm Nawy and Synergy Capital’s asset management arm Misr For Financial Investments (MFIC) closed the Middle East’s first transferable-assets and Ijarah-backed mortgage fund, raising EGP 443 mn, according to a joint statement (pdf). This is the country’s first Islamic finance vehicle to securitize home-loan receivables.

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

Breaking down the jargon: The Misr for Financial Investments - First Issuance Fund pools together Shariah-compliant home-financing contracts, known as Ijarah, or lease-to-own agreements, and packages them into transferable investment units that investors can buy. Funds raised are then used to purchase existing mortgage portfolios, giving financial institutions liquidity while providing investors with steady, fixed-income returns backed by real-estate assets.

The institutional muscle behind the close: The fund was oversubscribed within 10 days of opening after securing cornerstone investments from Al Baraka Bank, Allianz, Misr Ins. Holding, Misr Ins. for Property & Casualty, Mohandes Ins, Suez Life Ins, and Garhy Group for Investment & Development. The offering was also open to qualified individual investors, who accounted for 22% of total subscriptions, marking the first time retail investors were able to directly participate in a mortgage-backed fixed-income fund alongside institutional players.

Keeping the regulator onside: The proptech platform, which recently broke into the UAE market by buying into SmartCrowd, is already working with the Financial Regulatory Authority (FRA) to align its products with the regulator’s evolving framework for fractional property and real estate investment funds (REIFs). The FRA recently rolled out a new framework for fractional real estate investment, allowing investors to buy and trade units in real estate funds under tighter governance and disclosure rules. The move aims to expand access to property-backed investment vehicles and deepen liquidity in the domestic non-bank financial markets.

ADVISORS- Banque Misr acted as custodian on the transaction, while Misr Ins. for Property & Casualty provided ins. coverage, and ALC Alieldean Weshahi & Partners acted as legal counsel.

Egypt-Europe interconnection via Italy advances

Egypt-EU interconnection final studies are in the works: The Egyptian Electricity Transmission Company inked a cooperation agreement with UAE-based K&K Group to carry out final technical, environmental, and financial studies for the planned Egypt-Europe electricity interconnection project via Italy, 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.)

The project will link Egypt’s national grid with that of Europe through Italy’s power grid using subsea cables, paving the way for Egypt to export surplus renewable power — up to 3 GW of transmission capacity — to European markets. The agreement includes all the necessary preparations to kick off the interconnection implementation.

K&K first signaled interest in the project during COP28 by inking an MoU with Italian energy and engineering consultancy firm CESI, before activity stalled during the recent energy crunch. Its re-emergence now suggests renewed confidence in Egypt’s plan to reclaim its net energy exporter status in the near term.

The move also highlights growing investor confidence in Egypt’s technical capabilities and investment climate, Electricity Minister Mahmoud Esmat said.

A return of interconnection momentum? A 3-GW link between Egypt and Europe was proposed by Norwegian renewable energy developer Scatec in February 2023 and got cabinet approval later that year.

REMEMBER- The government plans to boost its electricity interconnection capacity to 3.9 GW by the end of 2026, up from 790 MW last year, a government source told EnterpriseAM in August. The increase will be backed by the completion of multiple regional interconnection projects with Jordan, Iraq, Saudi Arabia, and Greece.

Laying the groundwork: Egypt will bring 2 GW of solar and wind capacity online this year, followed by another 3 GW of solar power next year, Asharq Business reports, citing Trade and Industry Minister Kamel El Wazir.

Egypt achieves first 50 Gbps point-to-point wireless link

Vodafone Egypt has put the country on the map with a global telecommunications first: successfully testing the world’s first commercial 50 Gbps point-to-point wireless link.

In partnership with Huawei Egypt and under the supervision of the National Telecommunications Regulatory Authority (NTRA), this trial on the E-Band spectrum used advanced Full-Duplex technology to shatter existing capacity and speed benchmarks.

This landmark achievement is a major accelerant for Egypt’s digital transformation. The advanced point-to-point wireless link, operating in the E-band (80 GHz), sets a new benchmark in capacity and performance, enabling data transmission at 50 Gbps over extended distances. By demonstrating 50 Gbps data transmission, Vodafone is setting a new foundation for future 5G services and ultra-high-speed connectivity for both enterprises and individuals.

Vodafone Egypt's Chief Technology Officer, Catalin Buliga, said, “We are thrilled to be the first to test this advanced global technology for data transmission in Egypt. This achievement reflects our firm commitment to leading the telecommunications market in Egypt and driving technological progress that positions the country as a regional center for innovation in the Middle East and Africa.”

The full-duplex E-Band link offers unparalleled efficiency and capacity, enabling reduced operational costs and significantly faster data transfer speeds. It’s a breakthrough that solidifies Egypt's role in driving next-generation advancements.

Nanovate closes USD 1 mn pre-seed round

Cairo-based AI startup Nanovate raised USD 1 mn in a pre-seed funding round led by a group of regional and international angel investors, according to a company statement (pdf). The funding comes just nine months after the company began operations in January 2025.

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

Where is the money going? The funding will support Nanovate’s expansion into Saudi Arabia and the UAE, with new offices planned in Riyadh and Dubai to serve enterprise clients, government projects, and channel partners, Co-Founder and CEO Ahmed Ismail told EnterpriseAM. The company will also use the proceeds to enhance its core technology — improving the multilingual capabilities and voice quality of its flagship AI agent Niva, upgrading its automation dashboard, and developing voice cloning and personalization tools for businesses.

That’s not all: Additional investments will go toward building a regional team to support clients, strengthening sales and reseller programs, and exploring light hardware R&D, including the development of NivaPod, a smart voice-enabled device for Arabic-speaking offices and retail spaces.

Nanovate? “Our mission is to bridge that gap by creating a full ecosystem of Arabic-first AI agents that help every business in the region work smarter, faster, and in their own language,” Ismail told us. According to him, more than 9 mn companies across MENA lose productivity daily due to manual operations, and 75% of customers churn because the technology they use is not designed for Arabic-speaking users. With only 3% of global AI tools supporting Arabic, Nanovate positions itself as part of a new wave of companies driving inclusion and localization in AI.

What’s next? Nanovate is preparing several product launches, including Niva 2.0, which will feature deeper CRM integration and analytics, Nanovate Dashboard 2.0 with real-time workflow tracking, and voice cloning tools for creating branded AI voices.

Egyptian startup funding dips 37% y-o-y during 9M 2025

Startup funding in Egypt fell 37% y-o-y in 9M 2025, coming in at just USD 202 mn, according to Magnitt’s 3Q 2025 Emerging Venture Markets report seen by EnterpriseAM. The fall in value was also reflected in a fall in transaction count, down 24% over the same period to 53.

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

But it was a different story for our Gulf neighbors, with the UAE seeing the total value of funding increasing 188% to USD 1.4 bn and Saudi Arabia seeing a 158% y-o-y jump in funding to USD 1.3 bn.

Driving the fall in Egypt was a fall in big ticket funding rounds, with the USD 157.5 mn Halan round during 9M 2024 having an important impact on the numbers, Magnitt CEO Philip Bahoshy told EnterpriseAM. If you exclude big-ticket rounds, funding is actually up 25% y-o-y, he explained. Egyptian series A rounds had a good start to the year, rising 76% to 67.7 mn in 9M 2025. Driving this was USD 52 mn raised by Nawy and another USD 15.7 mn raised by Sylndr. Excluding big rounds, funding has risen consistently over the last three 9M periods, Bahoshy added.

Weighing on VC activity is “persistently high inflation and continued currency depreciation,” which is limiting USD returns for those abroad and reducing liquidity in early-stage rounds — the primary market for the local VC scene — Bahoshy told us. This resulted in 11 less early stage transactions from the year before, with once active local investors now reducing their activity significantly, which illustrates the “sector-wide caution.”

Across the region as a whole, MENA startups raised over USD 3 bn across 469 transactions by the end of September — that’s more than double last year’s total and, for the first time, surpassing the longtime emerging market leader Southeast Asia, which trailed with USD 2.5 bn, according to a statement (pdf) from Magnitt. The third quarter was MENA’s strongest on record, with USD 1.2 bn raised, up 259% y-o-y. This suggests a “potential shift in global capital allocation,” though a longer period is needed to confirm a permanent trend, Bahoshy told us.

The UAE commanded the top spot for total funding, soaring 188% y-o-y to USD 1.43 bn across 164 transactions. KSA and the UAE together accounted for more than 90% of total regional funding. Meanwhile, Turkey’s funding grew 50% to USD 428 mn.

Mega rounds — over USD 100 mn — drove more than half the total value in the third quarter, led by the UAE’s XPANCEO (USD 250 mn), Airalo (USD 220 mn), and Saudi Arabia’s Hala (USD 157 mn). Still, non-mega activity has been showing sustained quarterly growth since 3Q 2024, signaling “a deepening pipeline rather than short-term concentration,” Bahoshy told us. This was underscored by a maturing mid-stage, with series A and B funding surging 205% y-o-y to USD 1.4 bn in the first nine months. The early-stage pipeline also remains robust, with pre-seed deals rising 30% y-o-y, signaling a healthy influx of new founders.

The fintech sector remains in the lead, attracting USD 965 mn (up 97% y-o-y) and representing over a quarter of all transactions. Growth was supported by open banking frameworks, major regional events, and large Saudi tickets. Enterprise software also gained momentum, rising to USD 320 mn across 52 transactions, up from USD 70 mn across 44 in the same period last year.

Merger and acquisition activity doubled to 40 transactions in the first nine months of 2025 — a three-year high and a sign of a “healthier, more liquid ecosystem,” Bahoshy said. Exits were concentrated in the UAE (15) and Egypt (13), due to their mature buyer bases and ecosystems. However, “the exit challenge is more acute in the UAE and Egypt than it is in Saudi Arabia,” as the more mature startups in both countries are on the search for liquidity to survive the global extension of the average 7-year path to an exit, according to Bahoshy.

Magnitt expects the remaining months of 2025 to see “sustained momentum and measured optimism,” bolstered by continued public-private collaboration and institutional capital flowing into emerging markets.

The region as a whole bucked global trends, as emerging venture markets saw a 6% y-o-y decline in funding to USD 6.56 bn. Southeast Asia was hit hard with a 48% decline to USD 2.5 bn, logging its weakest quarter in seven years.

HSBC Egypt named Best Cash-management Provider by Euromoney

Our friends at HSBC Egypt were named the #1 Best Cash-management Provider in Egypt in the 2025 Euromoney Cash-management Survey, the lender said in a press release (pdf). The bank ranked first overall and in every sub-category — including product, technology, and service — based on feedback from corporates and financial institutions.

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

HSBC also maintained its position as the world’s top cash-management bank for the third consecutive year, underscoring its leadership in digital innovation and tailored treasury solutions. “This recognition is a testament to the trust our clients place in us and to the expertise of our teams,” said HSBC Egypt Deputy Chairman and CEO Todd Wilcox. “Our leadership in [cash-management] is driven by continuous investment in technology and digital innovation including our most recent launch of Treasury API solution.”

AXA Egypt taps Mohamed Abou Alam as its new managing director

Mohamed Abou Alam (LinkedIn) was appointed as AXA Egypt’s managing director, according to a disclosure (pdf)). Abou Alam has been with the ins. giant since 2016, serving in various positions, most recently as its commercial deputy CEO. Before this, he worked for Chubb, Credit Agricole, and Orient Ins.

Infinity Fabric to set up USD 15 mn factory

MANUFACTURING-

Infinity Fabric will set up a USD 15 mn textile manufacturing facility in the Sokhna Industrial Zone, according to a statement. The project will be located on a 24k sqm plot developed by the Main Development Company.

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

The project will be implemented in two phases — USD 10 mn for the first phase and USD 5 mn for the second, which will include capacity expansions. The facility will specialize in yarn production, and textile weaving, dyeing, and printing, with an annual production capacity of 6k tons of yarn and 15k tons of fabrics.

Operations are scheduled to begin in 3Q 2026, and the project is expected to create around 1k jobs.

DEVELOPMENT FINANCE-

The European Investment Bank is mulling a USD 38 mn equity investment into a USD 150 mn vehicle managed by Tanmiya Capital Ventures’ Fund Manager BV, according to a project summary from the lender. The EU-Egypt Tanmiya Growth Fund II will support the “growth and institutionalization” of SMEs by opening up capital and providing managerial input.

Powell signals October rate cut as US labor market concerns grow

The Federal Reserve could move ahead with another interest rate cut later this month, Fed Chair Jay Powell signaled on Tuesday at the National Association for Business Economics annual meeting. He warned that the US labor market is showing further signs of distress, and that “downside risks to employment have risen,” marking his clearest indication yet that Fed officials see enough evidence to justify another quarter-point reduction in borrowing costs, the Financial Times reports.

The remarks solidified market expectations, with investors in federal funds futures now pricing in a nearly 100% chance of a cut at the Fed’s upcoming 28-29 October meeting, according to Bloomberg. “A rate cut in October is done,” former Fed economist and MacroPolicy Perspectives founder Julia Coronado told the business information service..

The Fed is now prioritizing risks to the job market over inflation. Despite delayed official data from the US government shutdown, private indicators and Fed research show a cooling labor market, as “both lay-offs and hiring remain low,” Powell said. Powell noted few signs of broader or lasting price pressures, adding that long-term inflation expectations remain aligned with the Fed’s 2% goal. “There really isn’t a risk-free path now… but now the labor market has demonstrated pretty significant downside risks,” the Wall Street Journal quotes him as saying.

Feeling through the dark: The Fed remains divided, as 19 policymakers are seeing two more rate cuts this year, while nine others see one or fewer cuts as appropriate, Bloomberg wrote. This internal division, coupled with the lack of official economic data, increases the risk of policy mistakes. “If this goes on for a while... it could become more challenging,” Powell admitted regarding the data blackout.

REMEMBER- The Fed’s rate cut in September to 4%-4.25% was its first since last December, prompted by a sharp summer slowdown in hiring. However, the unemployment rate remained relatively low at 4.3% in August. The September jobs report is currently delayed due to the government shutdown, but Consumer Price Index data is still scheduled for release later this month.

AND- No more shrinking balance sheet? The Fed could also end its three-year quantitative tightening policy in the “coming months” to keep funding markets liquid, Powell said. However, the balance sheet is unlikely to return to pre-pandemic levels, with USD 1.1 bn higher liabilities and greater reserve demand, he said, adding the Fed’s pandemic-era quantitative easing “could have — and perhaps should have — stopped” earlier, though it likely wouldn’t have changed the economy’s course.

MARKETS THIS MORNING-

Asian markets are in the green this morning, with Japan’s Nikkei up 0.8%, while Hong Kong’s Hang Seng and the Shanghai Composite are hovering around the 0.3% mark. Wall Street futures are virtually unchanged amid blockbuster 2Q earnings for Bank of America and Morgan Stanley.

EGX30	37,654	+0.5% (YTD: +26.6%)
USD (CBE)	Buy 47.58	Sell 47.71
USD (CIB)	Buy 47.58	Sell 47.68
Interest rates (CBE)	21.00% deposit	22.00% lending
Tadawul	11,682	+0.7% (YTD: -3.0%)
ADX	10,120	+0.1% (YTD: +7.5%)
DFM	6,039	+0.1% (YTD: +17.1%)
S&P 500	6,671	+0.4% (YTD: +13.4%)
FTSE 100	9,425	-0.3% (YTD: +15.3%)
Euro Stoxx 50	5,605	+1.0% (YTD: +14.5%)
Brent crude	USD 62.62	+1.2%
Natural gas (Nymex)	USD 3.04	+0.7%
Gold	USD 4,231	+0.7%
BTC	USD 110,782	-2.0% (YTD: +18.3%)
S&P Egypt Sovereign Bond Index	945.45	+0.1% (YTD: +21.6%)
S&P MENA Bond & Sukuk	151.17	+0.1% (YTD: +8.0%)
VIX (Volatility Index)	20.64	-0.8% (YTD: +19.0%)

THE CLOSING BELL-

The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 5.1 bn (13.3% above the 90-day average). Regional investors were the sole net buyers. The index is up 26.6% YTD.

In the green: Misr Cement (+2.7%), Oriental Weavers (+2.0%), and Orascom Construction (+1.8%).

In the red: Egypt Aluminum (-1.7%), Ibnsina Pharma (-1.2%), and Qalaa Holdings (-1.1%).

My Morning Routine: Hilda Louca, founder and CEO of Mitcha

Hilda Louca, founder and CEO of Mitcha: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mitcha’s founder and CEO Hilda Louca (LinkedIn). Edited excerpts from our conversation:

My name is Hilda Luca. As the founder and CEO of Mitcha, I am driven by a passion to revolutionize the e-commerce landscape for local designers across the region. Beyond my professional endeavors, I am also a mother to two wonderful girls, Gabi and Nicole, who inspire my continuous curiosity and drive.

I've been working since I was 16, and I began my career with Lufthansa, where I was the first non-German-speaking employee. It was a challenge, but I learned a lot over the ten years I was with them. I started in ticketing, then I was responsible for all the corporate and VIP customers.

After that, I moved to the US for two years before coming back to Cairo and working for Al Ahram Beverages. I then moved to Vienna, and finally back to Cairo again — that’s when I started Mitcha.

Mitcha is the first online platform for local designers. We started in 2019, and I've been working on it since the end of 2017. I’ve always wanted to do something out of the box since I was a little kid. Since launching in 2019, Mitcha has grown to support over 300 local designers, mainly women, achieving 200% y-o-y growth and establishing itself as the leading platform for authentic local fashion.

Why did I do it? After the revolution, I realized how many talented local designers are selling on Instagram, Facebook, and across social media. I was back from Vienna, where you order everything online, and they support their local talents a lot — so I wanted to do the same and support local designers in Egypt. I didn't want them to only showcase their products on Instagram, but to build professional, scalable businesses.

I saw that there are local talents and designers who do not have the tools or reach to grow. You would only know your local designers by either seeing them by chance on Instagram or a friend telling you about one she thinks is really cool. So, local talents are there, designers are there, but there are no tools.

It never made sense to me, because if you look back at Egypt in the 1940s, 50s, and 60s, we were once called the “Paris of the East.” The entire region came here to source fabrics and produce in our factories. Just watch the films of that era — icons like Faten Hamama and Soad Hosni embodied a timeless elegance, and the fashion they wore was proudly made in Egypt.

Customers are also looking for something different, as well as something authentic and local. Especially now with the new generations, but they don’t know where to look.

Mitcha is trying to bridge this gap, making it easier for designers to scale and for people to discover and trust local fashion. This is what drives the business.

My role is basically to make sure growth happens. Every day is different. I work with sales and on partnerships, and I try to set up systems that make the business run smoothly. Every day, I have to put in the numbers, identify market openings, and catch up with all the AI tools that are changing the industry, especially for e-commerce.

Solving problems is part of any CEO’s job — actually, it's the main part. The hardest part is how to always keep the team aligned and motivated, and ensure that they have the same passion that you have. Cultivating a shared passion and vision within the Mitcha team is paramount. I achieve this through transparent communication, empowering team members with ownership over key projects, and fostering a culture of continuous learning and innovation. This approach ensures every team member feels invested in Mitcha's mission to elevate regional design.

I am a very early riser. I wake up at 5:30am — 6am feels late for me. I start my day with reflection, praying, and journaling, which is an essential part of my day. Then I hit the gym, which helps set the tone for the day. If this time in the morning is interrupted, the day feels chaotic for me.

At work, my mornings usually start with checking the numbers and reviewing the priorities that I set the day before. I then try to have a quick chat with the team before moving on to more creative work later in the day.

I like the balance between business and creativity, and this makes every day different. I have to juggle the business and numbers side with the creative side, looking at content, production, and designs we’re doing. But I'm not a multitasker, I like to get through things one thing at a time. This is how I stay focused and organized.

I think a work-life balance is all about being present. So when I'm working, I give it my all, and when I'm with my family or resting, I try to be fully present. For me, it's about quality, rather than quantity. I learned this from Mo Gawdat, who says that your life’s true value is measured by the time you are truly present, and this is the only part of life you will remember.

I want to grow something that is meaningful, that lasts — not just a marketplace that sells. I want to onboard local designers from across the region, so that Mitcha is not only a platform for Egyptian designers, but also for Saudi, Jordanian, and Moroccan designers. This would create a really big platform with representation from all the countries in the region and allow customers to pick which country they want to see amazing, authentic designers from.

Our collaboration with Convertedin is a cornerstone of this strategy, empowering designers with cutting-edge AI-driven marketing tools that have already demonstrated a 30% increase in designer sales conversions, positioning Mitcha at the forefront of e-commerce innovation.

The rise of conscious shopping represents a pivotal shift in consumer behavior, and Mitcha is not just observing this trend but actively championing it. We believe that by providing a platform for sustainable and ethically produced local designs, we are not only meeting consumer demand but also setting new industry standards and fostering a more responsible retail ecosystem in the region.

I love to spend time with my friends or family after work. I also love to walk — I don't need anything fancy, just simple things that help me clear my head and recharge. I’m also a travel addict, and I like to discover new cities, explore the small streets on foot, get to know the locals, try their food, and enjoy the weather.

The 5am Club by Robin Sharma changed my life. Atomic Habits by James Clear also affected me big time and taught me practical ways to grow. I listen to a lot of podcasts when I'm commuting between meetings or going to work. I love listening to Simon Sinek for leadership and to Mo Gawdat, who has taught me the real meaning of happiness.

I’ve been fortunate to have many mentors, but the advice that has stayed with me the most is that success comes from consistency and resilience. It’s not about talent alone or achieving something quickly. Social media often makes success look easy and instant, but the truth is, it takes time.

CALENDAR

OCTOBER

12-16 October (Sunday-Thursday): Cairo Water Week, Cairo.

13-18 October (Monday-Saturday): Annual meetings of the World Bank and the International Monetary Fund.

19-20 October (Sunday-Monday): Egypt to host the fifth edition of the Aswan Forum.

19-22 October (Sunday-Wednesday): Arab African Investment and International Cooperation Summit.

22 October (Wednesday): Egypt-EU Summit, Brussels, Belgium.

23-25 October (Thursday-Saturday): Stone Africa Expo, Cairo International Conference Center.

28 October (Tuesday): BEBA’s working dinner with Finance Minister Ahmed Kouchouk and Investment Minister Hassan El Khatib.

October: The third iteration of the Export Smart Exhibition and Conference.

October: The tenth session of the Egyptian-Lebanese Joint Higher Committee.

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

NOVEMBER

1 November (Saturday): The official opening of the Grand Egyptian Museum.

16-19 November (Sunday-Wednesday): Cairo ICT 2025, Egypt International Exhibition Center

20 November (Thursday): Monetary Policy Committee meeting.

23-25 November (Sunday-Tuesday): NEBU Expo 2025 gold and jewelry exhibition, Egypt International Exhibitions Center, New Cairo.

November: Egypt to join the EU’s Horizon Europe research and innovation program.

DECEMBER

1-4 December: Egypt Defence Expo (Monday-Thursday), Egypt International Exhibition Center.

4-7 December (Thursday-Sunday): Egy Stitch & Tex Expo 2025, Cairo International Conference Center.

15 December (Monday): Neo Gen PropTech and Sustainable Smart Cities Conference, The St. Regis Hotel New Capital

25 December: (Thursday): Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

Mid-2025: EGX launches sustainability index.

December: Germany’s North Rhine-Westphala business delegation to land in Egypt.

3Q 2025: Nasr Automotive begins locally manufacturing passenger cars.

3Q 2025: Polaris Parks to finalize contracts for two new industrial zones in the new capital and Sadat City.

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

2H 2025: Potential visit by Chinese President Xi Jinping to Egypt

4Q 2025: The beginning of construction works on China’s State Grid two solar projects.

4Q 2025: GB Auto starts assembling one of China’s Great Wall Motor models in 4Q 2025.

4Q 2025-1Q 2026: Kasrawy Group to launch first Avatr EV models in Egypt.

2025: The InterAcademy Partnership assembly.

2025: Nile Basin States Summit, Cairo, Egypt.

2025: Release of the government’s Startup Charter document.

Before 2025-end: The government will launch two ro-ro shipping lines with Saudi Arabia and Turkey.

2026

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

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

1 January: European Union’s Carbon Border Adjustment Mechanism (CBAM) to fully come into effect.

10-12 February (Tuesday-Thursday): Gitex Global’s AI Everything Middle East & Africa Summit

15 March 2026: IMF to hold its seventh review of Egypt’s USD 8 bn EFF arrangement.

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

15 September 2026: IMF to hold its eighth review of Egypt’s USD 8 bn EFF arrangement.

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

2027

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

April 2027: Tenth of Ramadan dry port and logistics hub to begin operations.

EVENTS WITH NO SET DATE

2027: Egypt to host EBRD’s annual meetings for 2027.

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

September 2028: First unit of the Dabaa nuclear power plant begins operations.

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