The IMF is open to changing our loan terms

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What We're Tracking Today

It’s the last week of daylight savings time in Egypt

Good morning, all. We have a brisk issue for you this morning to kick off the last week of October.

PSA-

#1- We’re turning the clocks back on Thursday night: We will all be getting one extra hour in bed this Friday as daylight savings time comes to an end. Our time zone will be back to GMT+2 from GMT+3 as the sun continues to rise later and later each morning.

#2- EgyptAir has canceled Iraq-bound flights following Israeli strikes on Iran, informing customers that flights will remain on hold until “the situation stabilizes.” A flight to Jordan was also canceled yesterday following the early morning attacks.

WEATHER- It’s another cool day in Cairo, with a high of 29°C and a low of 18°C, according to our favorite weather app.

It’s not as cold in Alexandria, with a high of 27°C and a low of 20°C.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

HAPPENING TODAY-

Attention, city slickers: Cairo Urban Week kicks off today and will run until next Sunday to highlight the “city’s rich cultural diversity and unique heritage” ahead of the World Urban Forum that will begin just after in the capital. You can find the full agenda and the link to register on the event’s official website.

HAPPENING TOMORROW-

The Doing Business with Finland seminar is nearly upon us, with Finnish and Egyptian companies set to meet tomorrow at the Finnish Embassy-backed event to discuss potential healthcare, education, ICT, and food supply partnerships. The registration window for Finnish companies to register to attend has closed, but local companies can still register through the link shared by the National Initiative for Developing Egyptian Industry (Ebda).

CIRCLE YOUR CALENDAR-

#1- The Cairo Woodshow is back: The Cairo International Wood and Wood Machinery Show is taking place from 28-30 November at Nasr City’s Cairo International Convention and Exhibition Centre, the organizers said in a press release (pdf). The event will bring together some 11k attendees and 184 exhibitors from leading manufacturers, suppliers and buyers from 75 countries. Register for the event via the link shared on its official website.

Two other events will be held in parallel: The International Glass Show showcasing the latest developments in the glass sector and the Cairo Furniture Accessories and Components Show focusing on furniture technologies, accessories, and innovative brands in the field will also be taking place

#2- Climate Investments Funds mission is coming to Egypt: Climate change and developing nation-focussed fund body Climate Investment Funds (CIF) will send a mission to Egypt in November to evaluate the progress of joint initiatives and look into further green industrial collaboration. CIF will be on the lookout for projects to fund with a focus on climate financing and emissions reduction.

#3- More details on plans to up investment in oil and gas, mining are coming our way: The government will be releasing a new policy on increasing investment in oil and gas, petrochemicals, refining, and minerals in November, Oil Minister Karim Badawi said on Wednesday. He added that the government is also preparing a new strategy to develop Egypt’s mining sector, which it plans to unveil at the Mining World Conference 2024, set to be held in London in December. Badawi noted that the ministry is seeking to attract investment through providing attractive potential investments, working closely with investors, and maintaining a supportive legislative framework for investment.

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

POLL WATCH-

A Reuters poll of 13 economists forecasts GDP growth hitting 4.0% for the current fiscal year, a 1.6 percentage point jump from the 2.4% recorded for the previous fiscal year. The economists polled pointed to a steady recovery from austerity measures directed by the IMF as one of the reasons behind the uptick.

This is more optimistic than some, and less pessimistic than others: The poll is in line with the Madbouly government, who also sees the economy growing at a 4.0% clip this current fiscal year. This is just below the IMF’s forecast of 4.1%, but a fair bit above the World Bank’s forecast of 3.5%.

We’re on an upward trajectory: The poll also sees GDP accelerating further to 4.7% in the next fiscal year, and to 5.3% in the fiscal year after that.

But inflation is projected to be much stickier than the central bank is aiming for: Headline inflation is seen falling to 20.4% for the fiscal year and 11.4% for the fiscal year after, a fair bit above the central bank’s average inflation target of 7% (±2%) by 4Q 2024 and 5% (±2%) in 4Q 2026.

The EGP is also forecasted to gradually weaken, hitting 50.4 against the greenback by the end of the fiscal year and 52.0 by the end of the fiscal year after.

ENTERPRISEAM IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. EnterpriseAM — the essential morning read on all the important news shaping business and the economy in Egypt, GCC, and the wider region — is looking for writers, reporters, and editors to help us build out new publications.

Never worked in a newsroom before? We have the EnterpriseAM Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the EnterpriseAM Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors, and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists on subject matter knowledge, while also working on constructing and filing EnterpriseAM stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

PLUS- We’re also looking for our first dedicated audience development professional. Someone who loves the challenge of helping us reach new readers in new markets — Saudi, the UAE, and lots more to come —using a range of digital channels and tools. You’re someone who thrives on working in a small, focused team. You’ve got proven digital skills (more likely than not on the performance marketing side). And you want to be part of what we immodestly think is the region’s most exciting media, advisory, and business intelligence company.

Interested? Tell Patrick and Moustafa why and send us your resume on newjobs@enterprise.news. We’d love to hear from you today. The position is based in Cairo, offers two days a week working anywhere you please, and offers a competitive package. (We’re also pretty nice people to work with, if we don’t say so ourselves.)

THE BIG STORY ABROAD-

Israel strikes military targets inside Iran: Israel fighter jets struck western Iran and around Tehran over the weekend, killing four soldiers and causing what Iranian officials termed “limited damage” to military targets as the country sought to play down the magnitude of the strike. The strikes follow Iran’s 1 October ballistic missile attack on Israel.

The strike’s targets included missile factories, border radar systems, and solid fuel mixing facilities critical for ballistic missile production, among others. The strikes notably did not target Iran’s oil infrastructure or nuclear facilities — two areas that would be likely to trigger a strong Iranian response.

War of words: Iran struck a conciliatory tone in its statements following the strikes, emphasizing the overriding importance of securing a ceasefire in Gaza and Lebanon even as it condemned the raid and affirmed its right to defend itself. As Iran’s domestic media downplayed the attack, the Israeli government remained largely silent, with Prime Minister Benjamin Netanyahu banning his ministers from giving interviews in the hours after the strike. (Financial Times | Associated Press | Reuters)

On the other side of the globe, Donald Trump is once again making headlines following his interview with podcast host and MMA commentator Joe Rogan, which saw the former US president struggle to stay on-topic and remain cogent throughout the three-hour conversation. Trump repeated much the same rhetoric he has used throughout his campaign — including suggesting that the US is battling an “enemy from within” and reiterating the false claim that he was the winner of the 2020 US presidential election.

IMF signals openness to changing loan terms amid regional conflict pressures

Changes to our loan program commitments may be in the cards: “We have been very open to adjust the Egyptian program or any other program to what is best to serve people,” International Monetary Fund boss Kristalina Georgieva s aid in a press briefing . Georgieva’s comments followed how countries in the region — including Egypt — are seeing “growth projections revised significantly downward,” with regional conflict being a “big reason for this downgrade.”

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

Remember: After President Abdel Fattah El Sisi made headlines for stating that Egypt might reevaluate its agreement with the IMF in light of economic pressures the nation is enduring as the country carries out reforms as part of the loan agreement, Prime Minister Madbouly confirmed that the government is currently reviewing the timeline and reforms put forward by the Fund. Madbouly highlighted the direct impact that the war on Gaza and the subsequent decline in Suez Canal revenues has had on state revenues as justification for the review.

It doesn’t look like we’ll be getting fresh funds: Although the fund signaled its openness to negotiate timelines and targets, the Fund’s Middle East and Central Asia head Jihad Azour said in a separate press briefing that additional funds were unlikely. “I think the macroeconomic conditions today are showing that the program as it's designed and its finance is still appropriate,” Azour said in response to a question.

This doesn’t mean that we’re off the hook: In contrast to the IMF’s talk of being open to changing some of the terms of the loan agreement, Georgieva reiterated that “Egypt is better served by undertaking reforms sooner rather than later.” She also warned the country not to repeat previous mistakes, telling the audience “there has been some delay in the past of actions, and that makes the cost higher. And that cost ultimately falls on the shoulders of people.”

Tough but necessary decisions still needed, says the IMF: “We are not going to do our job for the country and for the people of the country if we pretend that action that needs to be taken can be foregone, because the only thing that happens is the price of this action goes up,” Georgieva said.

We should hear more news on this front with Georgieva set to land in Egypt early next month: Georgieva announced she “will go to Egypt in about ten days exactly for this reason” on Thursday. “I would like to see for myself what is happening in the country. I want to hear what the views are. And we will look into the support of the Fund from the perspective of what is best for the country,” she added.

Georgieva isn’t the only IMF official set to be heading to Egypt soon: The Fund will start its fourth review of our loan program soon — Madbouly last week said that the review will start following the end of the International Monetary Fund and World Bank Group Annual Meetings, which wrapped yesterday. The review will unlock USD 1.3 bn in funds — the biggest of the four tranches to date.

The IMF’s plan to cut surcharges could save us a lot more than originally thought: The IMF’s decision to cut surcharges by an average of 36% starting next month could save Egypt USD 800 mn by 2030, Georgieva told Asharq Business. A government source previously told EnterprieseAM that the decision could save Egypt between USD 300-400 mn.

The international press also took note: Bloomberg | Reuters.

Investment Minister Hassan El Khaitb will manage the SFE following legislative amendments

Investment Minister Hassan El Khaitb will now be minister in charge of the Sovereign Fund of Egypt (SFE), according to a decision by Prime Minister Moustafa Madbouly published in the Official Gazette on Thursday that places the fund under the control of whoever is heading the Investment Ministry.

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

This wasn’t the only important change made to the sovereign wealth fund over the last few days: Madbouly’s decision came alongside President Abdel Fattah El Sisi ratifying amendments to the law regulating the SFE that gave the prime minister the power to appoint the minister in charge of the fund — rather than the responsibility falling to the planning minister. Under the amendments the fund will also be directly under the cabinet’s control and deemed a cabinet-affiliated fund.

The why: The move comes alongside efforts to better align the SFE with the objectives and actions of the cabinet by placing it more firmly under its control and to boost its contribution to the country’s economic development. The importance placed on the investment minister — as opposed to the planning minister previously — also signals a change in approach to the focus of the fund being more towards attracting investment from abroad, positioning the fund to better carry out the state’s privatization program.

El Khatib has already laid out his vision on how he would run the fund: “I’m not fixated on privatization,” El Khatib said last month at the EnterpriseAM Finance Forum, explaining that he instead approaches the topic as “an investor.” El Khatib explained that instead of selling assets quickly and cheaply, “I want to talk about maximizing their value and the returns we get for them, move them to a sovereign wealth fund, have them be run by the private sector, and monetize them to generate more value.”

There’s been quite a bit of movement on the privatization front recently: The government will soon announce “important news” regarding the privatization of a number of banks and airports, Madbouly announced earlier this month. The news was quickly followed by the central bank-owned United Bank temporarily listing its shares on the EGX ahead of an IPO and unconfirmed reports of the first five airports to be included in the state’s airport privatization plans. The government is looking to raise USD 2-2.5 bn through the privatization of state-owned companies in FY 2024-2025.

What’s in the pipeline for Mashreq Neo + more on the successes and challenges of digital banking in the region

Digital banks — or neobanks — have proliferated in the Middle East region over the past few years, whether in the form of new, standalone banks or a proposition stemming from traditional banks looking to make their services more accessible and streamlined for a wider demographic. Banks in the region and abroad are looking at how to make their proposition stand out from the others, and how to make digital banking simpler, and globally accessible.

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

Leading one of the region’s biggest and most rapidly growing digital banking propositions, Mashreq Neo, is Radu Topliceanu (LinkedIn), who joined the bank in 2023 and is credited with shaping Mashreq Neo’s strategy and spearheading its expansion beyond the UAE’s borders.

Launching Mashreq Neo outside of the UAE involved plenty of localization, negotiations with regulators, and exporting advanced tech solutions from the UAE abroad.

Topliceanu oversaw the launch of Mashreq Neo Egypt earlier this year. Now, he’s preparing to launch Mashreq Neo in Pakistan, and figuring out how Mashreq Neo can become a global, integrated platform for customers who are banking across several countries.

We sat down with him to discuss the technicalities of transferring tech and banking propositions across borders, the way AI fits into the future of digital banking, and a lot more.

The big takeaway? Digital banking in Egypt is still facing some challenges in terms of tech advancements, but the regulations are quickly adapting to make it more accessible.

Edited excerpts from our conversation:

EnterpriseAM: How’s the launch in Egypt going so far?

Radu: It’s going very well. We launched two acquisition channels: one that is internal and is very well received by the public; and another through a collaboration with e& that’s also going great.

The process of customer acquisition and onboarding is slightly different in Egypt [than in the UAE] because of the difference in regulations. Customers can download the app and open an account in no time, but in order for us to activate the account, they must visit a physical store to sign a paper.

We collaborated with Fawry and e& Egypt, to allow customers to close the fulfillment process through their branches. Now, Neo is available across the entire country. Even though we have just 16 branches in Egypt, the customer as of today has 900 places to go and sign their papers. The progression in numbers of customers acquired is great — we had 25k customers join just through a limited referral campaign we launched, and mns of customers viewed and interacted with our Visa ad campaign featuring Mohamed Salah.

The Central Bank of Egypt is also promoting financial inclusion through a series of events, so we’re opening our own booth at those events where people can come and be onboarded and activate their accounts on the spot.

E: What’s in the pipeline for Mashreq Neo in Egypt for the rest of the year? Any new services you plan to introduce?

R: We have a very busy roadmap for the tail-end of the year and for the beginning of next year. We have already started to offer fixed deposits, and we’re planning on launching new savings products and more lending options.

In terms of the app, we have upgraded it and it is now on the same stack in Egypt and in the UAE.

E: Are you facing any challenges in terms of transferring the tech from the UAE to Egypt and getting customers onboarded properly?

R: There are slight differences between the UAE and Egypt. First of all, the quality of phones is a bit different and that can cause some glitches when they take a picture of their ID, to give you an example.

Then there’s the lack of eKYC based on facial recognition, which is something that still has to be developed in Egypt. I know the regulator is working on it and we expect it to be available sooner rather than later.

E: What else is different in terms of the offering?

R: The UAE is an expat country and there is a lot of need and a lot of journeys being built to offer ways for customers to send money home. In Egypt, it's the other way around. It's very important for people to be able to receive the money in their accounts. And I think here, Neo can play a very strong role in terms of financial inclusion. The money can land in their account extremely fast — that’s their priority.

Ultimately, we want to create an integrated view and seamless connectivity between Mashreq across different countries. And again, this should help in supporting the remittances towards Egypt and countries that need it.

I think that's an interesting direction that we're going to see as we transform into a group. We’re open in Egypt, we are going to open in Pakistan, and we plan to open in GCC countries. Then the customer will expect to have a global view. If I have an account in Mashreq Egypt and another in Mashreq UAE, I would expect to see it in the same app and to be able to seamlessly transfer money between them.

The good news is because we’re a group, there are solutions we’re building in Pakistan — where we plan to launch — which we are going to use for Egypt or even for the UAE, and vice versa. There is cross pollination across countries, which works both ways — not only exporting solutions from the UAE and applying it in other markets to help boost financial inclusion, but also learning from those other markets.

E: What was the biggest challenge you’ve had to overcome since joining Mashreq and heading Neo?

My focus has been on increasing client engagement. What most banks do is they cherry pick the best customers, targeting maybe just the top 200k out of 1 mn customers for loans, investments, deposits, ins., etc. What we have done, and it's working very well, is we put together a client engagement team, which looks at the whole customer base and is finding ways to engage the customer based on their profile and their needs. There might be a blue collar worker who doesn't have money to invest, or is not interested in investment — perhaps for this client, what’s most relevant is remittances.

We are building very advanced machine learning models, which are helping us analyze and go through our databases, and personalize all this engagement.

E: You’ve mentioned a lot of investments in AI in earlier chats. Where are you focusing those investments currently?

I think the most obvious area in which genAI is used today is in the chatbot and the customer service center. What I'm seeing in terms of penetration of the chatbot is very encouraging; more and more customers are using the chatbot, and more and more of their requests are resolved end-to-end through the chatbot. It’s improving the efficiency of our operations, but it also helps boost customer satisfaction.

We also use AI to optimize the funnel, so we’re collecting data from the moment the customer downloads the app until they open an account, and this data is very important for us to understand where friction points are and then to try to sort those out.

Egypt is in line for funds from the Green Climate Fund

Green Climate Fund approves some USD 2.7 bn in funds for three programs in Egypt and other countries: The Green Climate Fund has approved funding proposals for three multi-country sustainable development programs, unlocking USD 2.7 bn for programs across 14 countries — with Egypt set to be included in all three, according to an Environment Ministry statement. The funding includes:

#1- USD 1.3 bn for greening financial systems in 14 countries across Asia and Africa. This funding will help participating countries unlock access to green financial products and technical support grants.

#2- USD 1.3 bn for expanding water resilient infrastructure across 14 countries, which will disburse funds for high-tech and energy efficient improvements to water infrastructure.

#3- USD 130 mn for an investment fund for resilient agriculture in 10 African countries, which will fund small farmers’ adoption of “climate-smart solutions” and ensure they have access to ins., infrastructure investment financing, and more sustainable inputs.

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

SOCIAL HOUSING FUND WANTS MORE FROM THE WORLD BANK-

Social Housing Fund mulls additional USD 200 mn from World Bank: The Housing Ministry’s Social Housing and Mortgage Finance Fund is considering increasing its World Bank loan by USD 200 mn by December 2025 — bringing the total value of its loan to USD 1 bn, CEO May Abdel Hamid said in statements picked up by Al Mal. The fund seeks to add some 10k units by the end of next year, Abdel Hamid said, adding that it is looking to increase private sector involvement in upcoming projects.

Remember: The fund last received a boost for its low-income housing program in March 2020, with the World Bank increasing the fund’s loan by USD 500 mn. The Social Housing Fund was also reportedly on the lookout for an EGP 50 bn syndicated loan from four local banks back in March.

Egypt’s former FinMin Mohamed Maait appointed as IMF executive director representing Arab states and the Maldives

Maait named new IMF executive director for Arab states + Maldives: Former Finance Minister Mohamed Maait has succeeded Mahmoud Mohieldin as the IMF’s executive director representing Arab states and the Maldives, according to a cabinet statement.

We saw this coming: Earlier this month, an informed source told us that Maait was the top candidate for the job, with the news coming as Mohieldin wrapped up his second two-year term in the position.

What to expect from his tenure: “Our goal is establishing stronger, more diverse, and more flexible economic foundations capable of achieving sustainable growth at healthy rates to serve developing nations, particularly low- and middle-income countries,” Maait said following his appointment. He also noted the importance of private sector participation, saying that the private sector needed to be encouraged to inject investments “within a conducive, transparent, and competitively neutral business environment.”

Israel’s attack on Iran was the main talking point on the airwaves last night

Israel’s attack on Iran was the main topic of discussion on the airwaves last night: Israel’s strikes on Iranian military targets early Saturday drew skepticism from Ala Mas’ouleety’s Ahmed Moussa, who called them part of the two countries’ “political theater” where they “inform each other before launching any attack,” (watch, runtime: 7:30). Moussa added that as of Saturday night, there had been no footage from either side documenting the events on the ground.

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

Israeli forces also engaged targets in Syria and Iraq: Israeli fighter jets making their way to Iran engaged targets in Idlib and Damascus, as well as in Iraq’s Salah El Din Governorate, military strategist and commentator Samir Ragheb told El Hekaya’s Amr Adib (watch, runtime: 4:08).

Gaza ceasefire agreement imminent? During his conversation with Adib, Ragheb noted that a ceasefire agreement currently in the final stages of negotiations between Egypt and Israel was likely to see the two sides reach an agreement within a week or two — particularly because Israel had “largely neutralized threats coming from Gaza” (watch, runtime: 3:46). The agreement would also address navigation threats in the Red Sea, he said, predicting that the conflict would cool down before the next US president begins their term in office.

TAG Oil is raising USD 7.2 mn to fund activities in Egypt

ENERGY-

TAG Oil looks to raise USD 7.2 mn to fund its activities in Egypt: Canada-based oil and gas company TAG Oil is looking to raise CAD 10 mn (USD 7.2 mn) through a public offering of additional units in the company, with the firm planning on using the proceeds of the offering to “advance appraisal and development activities” in Egypt’s Western Desert, the company said in a statement. The firm will use the funds to expand its work in the Badr field as well as a new 512k-acre concession in the Western Desert that it is currently in the process of acquiring.

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

Remember: Last week, TAG Oil secured a no-objection letter from the Egyptian General Petroleum Company for its binding proposal submitted in 2Q 2024 to acquire a 2k km concession in the Western Desert.

MANUFACTURING-

#1- Knauf sets up its third factory in Egypt: Building material manufacturer Knauf is opening a new gypsum board factory in Egypt — its third so far — with investments of EUR 80 mn, CEO Mohamed Abdelrasoul told Prime Minister Moustafa Madbouly, according to a cabinet statement. The new factory will push the firm’s total production capacity to 60 mn sqm of gypsum boards annually and will reduce water and energy consumption by 35%, according to Abdelrasoul.

Knauf has big investments planned in Egypt: Abdelrasoul announced back in June that the company is planning to increase its investments in Egypt to EUR 120 mn by 2026, up from EUR 50 mn at the time. The funds were set to go toward expanding the company’s existing operations and adding new production lines to Knauf’s gypsum board factory in Suez.

#2- Oppo expands local smartphone manufacturing: Chinese smartphone manufacturer Oppo has begun production of its Reno 12 5G phones in Egypt, according to a company statement picked up by local media outlets. The company is also aiming to increase production from 70k phones per month currently to 500k in the coming period and create 1.2k jobs.

** Check out our Inside Industry rundown of the localization of our smartphone industry here.

COMMODITIES-

Our supersized wheat shipment hits a speed bump: Our massive 430k ton wheat shipment contracted last month may not be moving forward, Bloomberg reports, citing traders familiar with the matter. The shipment — which was slated to be delivered by the first week of November — has been delayed, with no ships assigned to collect the grain and paperwork still not complete.

REFRESHER- Egypt grain buyer GASC purchased 430k tons of Russian wheat last month at USD 235 per ton to bring the country’s strategic wheat reserves to a level equivalent to 6.1 months of consumption. The size of the wheat buy was driven by wheat’s low price at the time — something Egypt will not be able to capitalize on if the agreement is delayed further with wheat prices rising.

EXPANSION-

Elsewedy to help diversify Iraqi economy: Elsewedy Electric has signed an MoU with the Iraq Development Fund to establish a new fund — dubbed the Localization Fund — that aims to attract both local and foreign investments to support Iraq's economic diversification, according to a statement (pdf ). The partnership will focus on developing projects across the agricultural, industrial, and service sectors, with the aim of reducing Iraq’s dependence on oil and fostering collaboration between international and local investors.

Where Elsewedy fits in: “Through this alliance, we will offer our expertise in project execution while also focusing on human capital development by establishing technical and vocational schools, as well as universities, in line with global standards,” Elsewedy Electric CEO Ahmed El Sewedy said.

INTERNATIONAL COOPERATION-

Egypt OECD country program renewed to 2025: The Organisation for Economic Cooperation and Development (OECD) will renew its Egypt Country Program for another year until 2025 under an MoU inked with the International Cooperation Ministry. The program focuses on five key pillars for Egypt’s development inline with OECD standards — economic growth, innovation and digital transformation, governance and anti corruption, enhancing statistics, and sustainable development.

REAL ESTATE-

Madinet Masr join up with Zahraa Maadi Investment and Development for New Heliopolis project: Local real estate players Madinet Masr and Zahraa Maadi Investment and Development will jointly develop a 42-feddan residential project in New Heliopolis with projected revenues of EGP 11.4 bn, according to a statement (pdf). The project will take some six years to implement with Madinet Masr holding a 64% share and Zahraa Maadi holding a 36% share.

AUTOMOTIVE-

Mercedes-Benz wants to up its production in Egypt: Mercedes-Benz Egypt is looking to increase its production by 30% in 2025, newly-appointed CEO Stefanie Volz said during a meeting with Investment Minister Hassan El Khatib last week, according to a ministry statement. Volz added that the Egyptian market holds significant potential for the auto industry given its strategic location as a hub for African markets.

Fitch trims Mena growth to 1.8% in 2024

Fitch warned that the Middle East region is entering 2025 “on shaky ground,” against the backdrop of the ongoing war, economic headwinds, and political uncertainty following the US elections, during a webinar earlier this week. The agency expects the region’s economy to grow at c. 1.8% in 2024, down from the 2.3% it penciled in last August, according to Fitch Solutions company BMI’s latest outlook (pdf).

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

A rebound is expected next year: The regional economy will pick up to over 3% by next year, according to its forecast.

What about Egypt? BMI expects the IMF to extend the reforms timeline set under the USD 8 bn loan program with Egypt, especially seeing that Egypt has already slashed subsidies and hiked the prices of a number of commodities — including fuel. BMI also sees regional tensions continuing to hurt Suez Canal revenues, penciling in a high probability of a prolonged war with continued Houthi attacks on ships passing through the Red Sea.

UAE to lead the region: BMI anticipates the Emirates’ economy to grow at the fastest pace in 2025, anticipated to accelerate to 5.2% in 2025, fueled by increased oil production and the government’s diversification efforts.

BMI also sees strong growth for Saudi Arabia, forecasting the Kingdom’s economy to make a dramatic rebound from approximately 0.3% in 2024 to around 4.7% in 2025.

Downside risks remain: Potential risks that could hamper growth include Opec’s production cuts failing to lift oil prices, which could hinder diversification efforts in the region, Fitch analysts noted during the webinar.

EGX30	30,553	+0.5% (YTD: +22.7%)
USD (CBE)	Buy 48.73	Sell 48.86
USD (CIB)	Buy 48.73	Sell 48.83
Interest rates (CBE)	27.25% deposit	28.25% lending
Tadawul	11,886	-0.1% (YTD: -0.7%)
ADX	9,204	+0.1% (YTD: +3.9%)
DFM	4,479	+0.3% (YTD: +10.3%)
S&P 500	5,808	0.0% (YTD: +21.8%)
FTSE 100	8,249	-0.3% (YTD: +6.7%)
Euro Stoxx 50	4,943	+0.2% (YTD: +9.3%)
Brent crude	USD 76.05	+2.3%
Natural gas (Nymex)	USD 2.56	+1.5%
Gold	USD 2,755	+0.2%
BTC	USD 67,096	-0.3% (YTD: +58.7%)

THE CLOSING BELL-

The EGX30 rose 0.5% at Thursday’s close on turnover of EGP 4.2 bn (0.9% above the 90-day average). Regional investors were the sole net buyers. The index is up 22.7% YTD.

In the green: B Investments (+2.8%), Telecom Egypt (+1.8%), and Madinet Masr (+1.7%).

In the red: Oriental Weavers (-3.3%), GB Corp (-1.8%), and Fawry (-1.1%).

CALENDAR

2024

OCTOBER

28 October (Monday): The Doing Business with Finland Forum, Cairo, Egypt.

30 October (Wednesday): The CEO Women Conference, Cairo, Egypt.

NOVEMBER

4-8 November (Monday-Friday): World Urban Forum, Cairo, Egypt.

7-9 November (Thursday-Saturday): FinExpo Conference and Exhibition, Cairo.

8-9 November (Friday-Saturday): Carerha Summit 2024, Cairo, Egypt.

10-12 November (Sunday-Tuesday): Falak Startups’ Fund Manager Masterclass, Cairo, Egypt.

12-15 November (Tuesday-Friday): Arab African Investment and International Cooperation Summit, Aswan, Egypt.

17-19 November (Sunday-Tuesday): Autotech Exhibition for Automotive Aftermarket & Feeder Industries, Cairo, Egypt.

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

25-27 November (Monday-Wednesday): Annual Digital Nation Conference, Cairo, Egypt.

26-28 November (Tuesday-Thursday): Egypt Energy Show, Cairo, Egypt.

28-30 November (Thursday-Wednesday): Cairo International Wood and Wood Machinery Show, Cairo, Egypt

30 November (Saturday): Deadline to apply for renewable energy projects under the peer-to-peer (P2P) system.

DECEMBER

16-17 December (Monday-Tuesday): Mining World Conference 2024, London, UK.

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

3Q 2024: Egyptian-Armenian Joint Committee.

First week of November: Egypt-Turkey high-level trade consultation mechanism.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2025

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

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

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

2Q 2025: Safaga Terminal 2 to start operations.

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.

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