Turkish regasification unit secured

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What We're Tracking Today

EGP posts gains against the USD

Good morning, all. We kick off the workweek with a busy issue, led by the news that we have another LNG regasification unit coming our way, three Chinese players setting up shop in Qantara, and the country’s unemployment rate continuing to inch down.

PSA-

WEATHER- After a scorching weekend, the temps are dropping in Cairo today, which will see a high of 36°C and a low of 21°C, according to our favorite weather app.

It’s much cooler in Alexandria, with a high of 26°C and a low of 19°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.

EGP WATCH-

The EGP continues to strengthen against the USD: The price of the USD edged down closer to the EGP 50 barrier at the end of last week, marking the local currency’s highest level against the greenback in five months. The EGP was trading hands at around the EGP 50.21/50.22 mark at both private and public banks at the end of trading on Thursday. The currency has now gained nearly 3% from its post-float low of EGP 51.72-51.75 it had reached last month, helped in part by improved market sentiment following easing trade tensions between the US and China.

RED SEA WATCH-

Can the reduction in transit fees help boost traffic levels in the Suez Canal? The Suez Canal Authority announced a 15% reduction on transit fees for container vessels in a bid to encourage major shipping lines to return to transiting through the canal, but some are skeptical the move will bear fruit. Abdel Qader Gaballah, Chairman of the Suez Chamber of Shipping, told EnterpriseAM that the move is not enough to incentivize shipping companies, adding that security remains the main concern. With the current security risks, the premiums for ships going through Suez is far higher than the fee reductions, he added.

Shipping giants are still monitoring the situation: Sources from Maersk and other major shipping companies said that they are monitoring the situation and will only consider returning to the canal if security improves.

HAPPENING TODAY-

#1- Proptech platform Aqarmap is hosting an Egyptian-Saudi real estate summit in Cairo’s Nile Ritz-Carlton today, the company said in a statement (pdf). The event will bring together developers, investors, and policymakers from Egypt and Saudi Arabia to discuss cross-border investment, market trends, and digital transformation in the sector.

** We spoke to Aqarmap CEO Aya Ashraf about the upcoming summit and more in a recent interview. Check it out here.

#2- The International Monetary Fund will kick off its first ever MENA Research Conference in Cairo today, the fund said in a statement. The two-day conference, organized by the IMF and the Onsi Sawiris School of Business at the American University in Cairo, will bring together academics, researchers, and policymakers to discuss regional and global economic issues. The forum also aims to bolster economic research skills in finance ministries and central banks in the region. You can check out the full agenda on the IMF’s website.

HAPPENING THIS WEEK-

Could a second consecutive rate cut be in store? After the Central Bank of Egypt kicked off its long-awaited easing cycle in March with a 225 bps cut — its first since 2020 — attention now turns to the MPC’s third meeting of the year on Thursday. The committee is set to decide whether to continue cutting rates or hit pause as the central bank weighs the implications of a temporary US-China trade war truce, inflation creeping up in April, and more.

** We will be out with our customary poll later this week to get an inside and informed outlook from the analysts and economists we trust the most. Watch this space.

DATA POINT-

Egypt aims to attract USD 42 bn in foreign direct investment (FDI) in FY 2025-26, building on this year’s inflows, which included the landmark USD 35 bn Ras El Hekma agreement, according to a government document seen by Asharq Business.

Net FDI inflows reached USD 6 bn in 1H 2024-25, compared to USD 5.5 bn during the same period a year prior, driven by the performance of non-oil sectors, including greenfield investments, real estate purchases by non-residents, and reinvested earnings.

THE BIG STORY ABROAD-

Most foreign outlets spent the weekend focusing on US President Trump’s blitz through the region. Trump inked USD 200 bn worth of commercial agreements between the US and the UAE during his last stop to the Emirates on Thursday. The new agreements, in energy, critical minerals, and — as expected — AI, bring the total investment ticket over his Gulf tour to USD 2 tn.

Trump’s tariffs are starting to weigh in on consumer prices: Walmart — the largest retailer in the US — announced it’ll raise prices, citing the added costs of tariffs. The announcement drew Trump’s ire in the form of social media posts that demanded the retailer “EAT THE TARIFFS” instead of passing them to consumers.

ALSO- The first direct talks between Russia and Ukraine in Turkey on Thursday did not go as planned, with Russian President Vladimir Putin skipping the talks and sending a delegation in his place, and Trump saying no agreement can be met until he sits down with Putin himself. The Donald said yesterday he will call Putin and Ukraine’s Zelenskyy tomorrow to discuss efforts to reach a ceasefire, as well as trade issues. (Financial Times | Reuters | CNBC)

AND- Crypto exchange Coinbase was hit with a cyberattack that it said could lead to losses of up to USD 400 mn. The exchange said it received threats from a hacker that it has sensitive client information, though Coinbase said no login credentials have been breached, but some data like names and addresses were stolen. (Reuters | CNBC | Bloomberg)

The Somabay Endurance Festival returns for its 7th edition from Thursday, May 29 to Saturday, May 31, 2025, at the Red Sea. Organised by The TriFactory, the event features Super Sprint, Sprint, Olympic, Youth, 1K Kids, and 10K races—uniting athletes of all ages for a weekend of competition, fitness, and fun at Somabay.

Egypt secures Turkish floating regasification unit to help cover gas demand during summer months

Turkey’s first-ever overseas deployed regasification unit will soon head to Egypt under a charter agreement between Turkish state-owned energy firm BOTAS and the Egyptian Natural Gas Holding Company, according to a statement from the Turkish Energy Ministry. The Turkish floating storage regasification unit (FSRU) will help process LNG imports during the high-demand summer months under a “flexible and efficient utilization model that will contribute to the natural gas supply security of both our country and Egypt,” according to Turkish Energy Minister Alparslan Bayraktar.

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

REMEMBER- The government is preparing for a surge in demand over the summer months, which has led the country to target importing 155-160 shipments of LNG this year to close the gap between demand and supply. Adding pressure to keep the lights on — and for Egypt to potentially overprepare — are repeated pledges from the government that the dreaded days of blackouts won’t return.

The Turkish vessel will be joined by three other vessels to process the summer uptick in LNG imports, including the already docked 750 mn cubic feet per day (mcf/d) Hoegh Galleon, the 750 mcf/d Energos Eskimo soon to make its way from Jordan’s Aqaba, and the still-unconfirmed 750 mcf/d Energos Power from Germany, according to industry publication Middle East Economic Survey (Mees), which noted that the vessel is currently en route to the Red Sea.

The name of the incoming Turkish FRSU is still under wraps, but Mees believes it will be the 750 mcf/d Vasant 1. Back in February, unconfirmed reports suggested Egypt was preparing to lease a Turkish FSRU to help meet surging domestic demand during the summer months. At the time, unnamed officials said the unit would cost the government some USD 45 mn and would remain in service until November, providing around 500 mcf/d of regasified LNG.

We also got wind of more news pointing to the country relying on LNG imports for much longer than initially planned, with the government reportedly in negotiations to secure supply contracts running until 2028 and 2030, unnamed informed insiders told Bloomberg. The news follows hot on the heels of similar negotiations for long-term contracts with Qatar and the inking of a ten-year agreement with global maritime energy infrastructure player Höegh Evi for the 1 bcf/d LNG regasification vessel Hoegh Gandria to replace the Hoegh Galleon currently docked in Ain Sokhna in 4Q 2026.

DATA POINT- Energy availability is expected to increase to 8.1 bcf/d during the summer months, with 4.0 bcf/d produced locally, 1.1 bcf/d imported from Israel, and a total 3.0 bcf/d in combined regasification capacity from the four expected vessels, according to Mees calculations using Oil Ministry and Gasco data.

WE’RE ALSO LOOKING AT MAZUT IMPORTS-

State-owned Egyptian General Petroleum Corporation (EGPC) has issued a tender to purchase just under 2 mn tons of mazut for delivery in May and June, as the government looks to cut reliance on expensive piped gas and LNG to meet rising summer electricity demand, Bloomberg reports, citing an unnamed source.

The “unusually large” mazut purchases are distorting global markets — helping push high-sulfur fuel margins in northwest Europe to their highest seasonal level since 2008. The International Energy Agency has revised up its historical global oil demand estimates, thanks in part to Egypt’s increased consumption. “These updates coincide with higher use of oil in power generation amid a natural gas shortage,” the agency said. Bloomberg notes the shift highlights not only feedstock substitution but also Egypt’s willingness to tolerate higher emissions in favor of energy security.

Three Chinese players will set up factories in Egypt’s Qantara worth over USD 80 mn

A whole lot of Chinese companies are coming to Qantara: The Suez Canal Economic Zone inked three new agreements with Chinese companies, under which they will set up shop in the Qantara West Industrial Zone.

#1- Kinlead Innovative Materials will set up a USD 60 mn packaging materials factory in the Qantara West Industrial Zone under an agreement signed with the SCZone, according to a statement. The fully self-financed project will be developed in two phases and create 600 direct jobs.

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

Kinlead will produce over 100 mn tons of biaxially oriented polypropylene (BOPP) rolls and films annually, along with 165k units of extended film and 60k adhesive BOPP rolls, all of which will be exported.

#2- Guangdong Hongxin Textile will set up a USD 13.3 mn textile factory to produce over 28k tons of fabric per year, 80% of which will be earmarked for export.

#3- Top New Garment Group will invest USD 7.2 mn in a factory to produce 25 mn pieces of ready-to-wear and sports apparel annually, all of which will be exported. The project will create 4k jobs.

This comes hot on the heels of Public Enterprises Minister Mohamed Shimi’s meeting with a delegation of Chinese textile investors last week, which saw the minister pitch potential partnerships in every stage of textile production with Egypt’s state-owned companies. The delegation — made up of 37 investors representing 25 major textile firms — was invited to explore potential investments and hold B2B talks with public-sector players.

DATA POINT- The new projects bring the number of contracted projects in the Qantara West Industrial Zone to 18, with total investments hitting USD 564.5 mn and generating some 25.3k direct jobs, SCZone head Walid Gamal El Din said.

Egypt’s unemployment rate continues easing to 6.3% in 1Q 2025

Egypt’s unemployment rate fell — for the second straight quarter — 0.1 percentage point from 4Q 2024 to 6.3% in 1Q 2025, according to data from the state statistics agency Capmas. The rate is down from 6.7% recorded in the same quarter last year.

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

Labor force growth drives the uptick: The country’s total labor force increased by 1% q-o-q to 33.4 mn people. This was driven by an additional 342k individuals securing jobs in 1Q 2025, while the number of those unemployed decreased by 19k.

The gender gap persists: Male unemployment came in at 3.6%, down from 3.9% in 4Q 2024 and 4.4% in 1Q 2024. Meanwhile, female unemployment stood at a much higher 16.4%, though it was still down 0.2 percentage points from 4Q 2024 and 0.1 percentage point from the same quarter last year.

Youth and fresh grads continue to struggle: Those aged 15-29 accounted for 58.6% of total unemployed individuals, down from 64.6% in 4Q 2024. Capmas doesn’t provide an official rate of youth unemployment.

Rural areas lead the recovery: Unemployment in rural Egypt dropped to 3.6% from 4.5% in 4Q 2024 and down a full percentage point y-o-y. Meanwhile, urban unemployment expanded to 9.8% in 1Q 2025, up from 8.9% during the last quarter and 0.4 percentage points above the same period last year.

The self-employment market continues to grow, with salaried workers declining as a proportion of the workforce: Salaried workers made up 69.7% of the total number of those employed — a 0.3 percentage point quarterly decline — while the self-employed now make up 22% — a 1.4 percentage point increase on 4Q 2024. Those working for family businesses fell 0.3 percentage points to 4.0% of the total workforce, while business owners inched up 0.2 percentage points to 4.3%.

REMEMBER- The unemployment rate excludes working-age individuals who are not actively seeking jobs or are unable to work. The labor force participation rate — which counts everyone aged 15-64 either in work or actively looking for work — came in at 45.8% in 1Q 2025, compared to 45.5% in the previous quarter and 43.5% in 1Q 2024.

Egypt mulls fresh incentives to localize EV manufacturing

Efforts to localize EV manufacturing: The Madbouly government is to introduce fresh incentives to localize EV manufacturing, a government source told EnterpriseAM. The Supreme Council for Vehicle Manufacturing is currently looking into a handful of facilities — increased tax and custom breaks and investment incentives — for companies that want to localize EV production.

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

As things stand: The incentives that currently exist, which were approved years ago, are no longer in line with production costs or EV prices, the source told us. Alongside revising them, authorities are studying additional incentives that target EVs with a local component ratio of above 60%, with plans to reach full local manufacturing at a later stage.

What’s already on the table: The current package offers a 2% flat customs rate on imported equipment, a five-year exemption from stamp tax and registration fees on incorporation and financing contracts, and grants of EGP 50k for the first 100k locally assembled EVs.

In return: The updated package will likely be tied to production volumes, added value from local components, and investments in localizing part manufacturing, the source added. Companies that bring in new technologies or commit to full local assembly within five years could receive extra support, in addition to fast-tracked customs clearance for imported components.

Efforts already underway: The government has been in talks with EV manufacturers to get a better understanding of their needs and to tap into international agreements that can position Egypt as a regional hub.

The sector is yet to reach its full potential: Our sources said that weak demand, lack of sufficient infrastructure and export-oriented incentives remain major problems for EV manufacturing in Egypt.

A move that could make the necessary infrastructure more widely available: The government is looking into raising the price for fast charging in efforts to push companies operating in EV charging to expand their footprint. Operators of charging stations requested an increase of 40% to the fee last year.

LMD to invest EGP 15 bn in Egypt this year

Property developer Landmark for Real Estate Development (LMD) is looking to invest EGP 15 bn in Egypt this year, as part of a wider EGP 300 bn investment plan, CEO Amr Sultan said in a presser attended by EnterpriseAM last week.

Where is the money going: Some of the funds will go towards the newly-launched Being New Zayed project, which will see investments of up to EGP 20 bn, Sultan added. The company expects the project to generate some EGP 25 bn in sales.

The developer wants a bigger slice of the North Coast: The successful launch of the Zoya project in the North Coast has prompted the company to explore new luxury developments in Ras El Hekma, in a move Sultan said would further position Egypt as a high-end tourist destination.

LMD is lining up fresh funds: LMD will secure EGP 5 bn in bank financing in June, which will finance ongoing projects and expansion plans, including the construction of a mixed-use project in the First Settlement, Sultan said. The project will see investments of up to EGP 80 bn. LMD is also looking to secure EGP 1 bn from the National Bank of Egypt to speed up the construction of a hotel in its new East Cairo development, Sultan said. He expects the company to secure the funds within weeks under the subsidized loan program for hospitality players.

What hotel? The five-star W Cairo Hotel, which will be operated under Marriott's luxury W brand, will have 330 hotel rooms and 500 serviced apartments. The project will have an investment ticket of USD 220 mn and trial operations will begin in 4Q 2027, Sultan said.

Big plans for the hospitality sector: The company has so far poured over USD 50 mn in Egypt’s hospitality sector — it is currently building 1.3k hotel rooms and 1.8k fully serviced apartments in East and West Cairo, the North Coast, and Red Sea's El Gouna. It is also building the More Residences services apartments project in New Cairo, combining luxury residential living with hotel services, entertainment, and sporting facilities. It also has plans to open up a boutique hotel called Coconut Athena in the North Coast.

More on LMD’s USD 4 bn project: The developer’s recently-announced USD 4 bn mixed-use project will be set up in West Cairo. Construction should start before the end of 2025.

Landmark sees real estate prices rising no more than 13% this year in line with inflation levels, the CEO said, adding that the company will be closely monitoring the EGP-USD exchange rate and interest rates as it works on refining its financial strategy.

The company is looking to step foot in the Saudi market: The real estate player is closely monitoring the Saudi market, as it awaits the right project to mark its entrance to the market. The company already has presence in Egypt, the UAE, Greece, Spain, and more recently Cyprus.

Jameel Finance raises EGP 500 mn in securitized bond issuance

Consumer finance player Jameel Finance closed a EGP 500 mn securitized bond issuance, according to a statement (pdf) from our friends at Beltone Investment Banking, who acted as lead arrangers. The issuance is part of a broader three-year, multi-issuance program worth a total of EGP 4 bn.

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

About the issuance: The bond was backed by a receivables portfolio originated by Jameel Finance, according to a statement (pdf) from counsel Dreny & Partners. It came in three tranches with tenors ranging from 12 to 48 months. The tranches received ratings ranging from P1 to A from the Middle East Ratings and Investors Service (MERIS).

Who bought in: Beltone Asset Management was among those who subscribed to the issuance. The Suez Canal Bank and Banque du Caire both underwrote the issuance.

ADVISORS- Beltone Holding’s Beltone Investment Banking acted as the financial advisor, lead arranger, and bookrunner. The Suez Canal Bank assumed the role of the issuances’ custodian and placement agent. Dreny & Partners provided counsel on the transaction, while Baker Tilly served as the auditor.

What they said: “This issuance reflects our continued strategy to provide clients with tailored, market-driven funding solutions that enable long-term financial stability and flexibility. We’re proud to have partnered with Jameel Finance- Egypt part of Abdullatif Jameel Group in this debut securitization,” Beltone Holding Group Treasurer and Managing Director of Debt Capital Markets Sherif Hassan said.

DATA POINT- This issuance brings the total value of securitized bonds issued in Egypt this year to EGP 13.8 bn, according to data tracked by EnterpriseAM.

GB Corp, Palm Hills report 1Q earnings

More earnings come out: GB Corp and local real estate developer Palm Hills Developments are both out with their 1Q 2025 earnings.

GB AUTO, GB CAPITAL GROWTH PUSHES GB CORP’S 1Q REVENUES UP-

GB Corp’s revenues rose 86.1% y-o-y to EGP 16.8 bn during 1Q 2025, driven by strong growth in both its GB Auto and GB Capital segments, thanks to an improving operating environment, according to the company’s most recent earnings report (pdf). Net income remained flat y-o-y at EGP 626.5 mn, with profitability affected by lower investment income and seasonality.

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

The breakdown: GB Auto saw its revenues jump 89.0% y-o-y during the quarter to EGP 14.5 bn. This growth was “fueled by robust demand across all business lines, supported by a stronger product mix,” with passenger car revenues notably rising 68% y-o-y due to strong performances in Egypt and regional markets. The group’s NBFS arm GB Capital saw its revenues — before intercompany eliminations — rise 71.1% y-o-y to record EGP 2.5 bn, driven by “continued expansion across its portfolio of alternative financing solutions.”

Looking ahead: “Looking ahead, we are focused on deepening synergies between our auto and capital platforms, accelerating digital transformation, and selectively expanding our regional footprint. With FX markets stabilizing, inflation moderating, and import flows normalizing, GB Corp is exceptionally well positioned to capitalize on Egypt's emerging recovery and regional growth opportunities,” said CEO Nader Ghabbour.

PALM HILLS REPORTS RECORD NET INCOME-

Palm Hills Developments reported its highest-ever quarterly net income, which came in at EGP 1.5 bn in 1Q 2025, up 54% y-o-y, according to the company’s latest earnings release (pdf). Revenues for the period also grew 35% y-o-y to reach EGP 8.4 bn on the back of strong new sales and revenue recognition.

Sales also surged for the period: New sales stood at EGP 80.2 bn in for the quarter, marking an increase of 148% y-o-y driven by strong sales across all operating regions. Badya sales made up the biggest chunk of the quarter’s sales (44%) with around EGP 35 bn, followed by West Cairo (25%) with EGP 20 bn, North Coast and Alexandria sales (17%) with around EGP 13.7 bn, and East Cairo (14%) with EGP 11.4 bn.

What they said: “In 2Q 2025, we are poised to build on this strong foundation. Our focus will center on further optimizing operational efficiency and unlocking greater value from our diverse portfolio. We remain committed to exceeding market expectations, fostering vibrant communities, and delivering sustained, long-term value for our stakeholders,” Executive Chairman Yasseen Mansour said.

El Sisi attends Baghdad Summit

All about El Sisi’s time in Baghdad: The nation’s talking heads had a lot of coverage for President Abdel Fattah El Sisi’s participation in the Arab Summit hosted in the Iraqi capital, Baghdad, on Saturday. El Sisi’s speech during the summit focused on Egypt’s positions on several regional issues — Palestine, Syria, Yemen, Libya, and Sudan. Kelma Akhira’s Lamees El Hadidi (watch, runtime: 11:17) described the president’s remarks as “the most important at the summit,” adding that he made it clear there can be no peace in the region without a just and comprehensive resolution to the Palestinian cause – even if Israel normalizes ties with all Arab countries.

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

Arab Summits under the spotlight: El Hadidi questioned the point of holding summits like the Arab Summit, pointing out that only a handful of heads of state showed up. She criticized the final summit statement as “highly traditional” and ineffective. Ala Mas’ouleety’s Ahmed Moussa also had coverage the summit (watch, runtime: 3:16 | 1:37).

ALSO ON THE AIRWAVES- The BRT trial operations kick off: The bus rapid transit (BRT) is now in its pilot phase ahead of opening to the public. The first 35-km stretch runs from the Police Academy in New Cairo to the Alexandria Agricultural Road. Transport Minister Kamel El Wazir joined Moussa (watch, runtime: 44:00) to share the ins and outs of the trial phase. Trial runs for the first phase have already started without passengers and the first phase should officially launch operations on 1 June, he said, adding that the second phase will kick off trial operations in August.

No more microbuses on the Ring Road? El Wazir said microbuses will be banned from the Ring Road starting 1 June as part of the BRT rollout. Some 300k people are expected to use the BRT daily, with tickets priced at EGP 5 for every four stops. The company operating the system will eventually be listed on the EGX, according to El Wazir.

REMEMBER- The EGP 10 bn BRT project aims to replace microbuses and other forms of public transport on the Ring Road.

AND- Agriculture Minister Alaa Farouk spoke to El Hadidi to debunk reports that 30% of the nation’s poultry has perished due to outbreaks and vaccine shortages (watch, runtime: 19:04). “The reports are completely untrue,” he said, adding that the mortality rate remains within the normal 3-6% range, driven by seasonal weather changes. He also appeared on El Hekaya’s Amr Adub to discuss the issue (watch, runtime: 12:25).

Hawass calls out claims of pillar structures under pyramids as “bull****” on the Joe Rogan Experience

Zahi Hawass made an appearance on the world’s most widely watched podcast. In a rare — and very welcome — break from the usual pyramidologists and conspiracy theorists invited on to Joe Rogan’s wildly popular podcast to talk about the Giza Pyramids and other ancient Egyptian monuments, former antiquities minister and actual archaeologist Zahi Hawass was invited on to give his two cents on the matter (watch, runtime; 1:58:34).

Hawass addressed claims of varying degrees during the interview — from theories that the builders of pyramids were slaves all the way to claims they were aliens. The archaeologist also turned his attention to recently popularized claims that there were 600-meter cylindrical structures underneath the Khafre Pyramid by asserting that he had talked to everyone he works with that knows about the use of radar ultrasound and they described the claims as “bull****”, as the technology used cannot give any usable data so deep within the ground.

AAIB inked EGP 150 mn financing agreement with MSMEDA

DEVELOPMENT FINANCE-

AAIB backs SMEs in Egypt via EGP 150 mn facility: The Arab African International Bank (AAIB) inked a EGP 150 mn financing agreement with the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) to on-lend small- and medium-sized projects across Egypt, according to a statement. SMEs — especially new ventures and women-led businesses — can access loans of up to EGP 15 mn for small businesses and EGP 30 mn for medium-sized ones, which will go toward purchasing machinery and working capital.

AAIB Vice Chairman and Managing Director Tamer Waheed said the facility aligns with the lender’s strategy to grow its SME portfolio, which has surpassed EGP 10 bn and now serves over 800 clients. The bank is prioritizing industrial and export-oriented businesses, he added, as part of a broader effort to boost Egypt’s industrial sector.

CAPITAL MARKETS-

Uptown 6 October to set up EGP 1 bn real estate fund: Real estate developer Uptown 6 October Developments plans to launch a EGP 1 bn real estate investment fund to capitalize on its property portfolio, Chairman Ahmed Abou Zaid told Al Borsa. The company is reviewing offers from investment banks and financial institutions to manage the fund.

Moody’s strips US of last AAA credit rating on rising debt concerns

The last credit rating agency to hold out has finally pulled the plug. Moody’s downgraded the US’ sovereign credit rating by one notch to AA1 on Friday, citing mounting fiscal pressures and rising borrowing costs in an accompanying statement. The move means none of the Big Three agencies now rate the world’s largest economy at the top-tier AAA level, after S&P slashed the US’ credit rating back in 2011 and Fitch’s in 2023 downgrade.

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

The move was a long time coming, after Moody’s had flagged risks to the US fiscal position back in 2023 when it shifted the outlook to negative. The agency now says that rising debt, a widening budget deficit, and interest costs “significantly higher than similarly rated sovereigns” pushed it to take action. It projects the federal deficit will reach nearly 9% of GDP by 2035, up from 6.4% in 2024, driven by rising entitlement spending, weak revenue generation, and interest payments on a debt pile that now exceeds USD 36 tn. “While we recognise the US’s significant economic and financial strengths, we believe these no longer fully counterbalance the decline in fiscal metrics,” the agency said.

The final straw? A massive Republican tax-and-spending package currently making its way through Congress is widely expected to balloon the deficit even further, with estimates putting its potential cost at USD 4-5 tn over the next decade. That’s on top of an already unsustainable fiscal path, Moody’s warned. “Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” the agency said in its statement.

MARKET REAX- The ten-year US Treasury yield rose 5 bps to 4.49% on Friday. Analysts expect yields to keep rising as investors reassess the risk profile of US government bonds. “The downgrade may indicate that investors will demand higher yields on Treasuries,” Brandywine Global Investment Management’s Tracy Chen told Bloomberg.

The White House brushed off the downgrade, with White House Communications Director Steven Cheung targeting Moody’s Analytics chief economist Mark Zandi — who had no involvement in the report — saying, “Nobody takes his ‘analysis’ seriously. He has been proven wrong time and time again.” The administration insists its tax reform plans will raise growth and revenue and bring down the deficit in the long run. “Moody's downgrade…should be a wake-up call to Trump and congressional Republicans to end their reckless pursuit of their deficit-busting tax giveaway,” Senate Democratic Leader Chuck Schumer said.

EGX30	31,941	+0.4% (YTD: +7.4%)
USD (CBE)	Buy 50.08	Sell 50.22
USD (CIB)	Buy 50.11	Sell 50.21
Interest rates (CBE)	25.00% deposit	26.00% lending
Tadawul	11,485	-0.4% (YTD: -4.6%)
ADX	9,654	+0.3% (YTD: +2.5%)
DFM	5,455	+1.1% (YTD: +5.8%)
S&P 500	5,958	+0.7% (YTD: +1.3%)
FTSE 100	8,685	+0.6% (YTD: +6.3%)
Euro Stoxx 50	5,428	+0.3% (YTD: +10.9%)
Brent crude	USD 65.41	+1.4%
Natural gas (Nymex)	USD 3.33	-0.8%
Gold	USD 3,187	-1.2%
BTC	USD 103,336	-0.3% (YTD: +10.6%)
S&P Egypt Sovereign Bond Index	868.1	+0.1% (YTD: +11.6%)
S&P MENA Bond & Sukuk	143.4	+0.3% (YTD: +2.4%)
VIX (Volatility Index)	17.24	-3.3% (YTD: -0.6%)

THE CLOSING BELL-

The EGX30 rose 0.4% at Thursday’s close on turnover of EGP 3.8 bn (16.7% below the 90-day average). Regional investors were the sole net buyers. The index is up 7.4% YTD.

In the green: Juhayna (+4.9%), Credit Agricole (+3.2%), and EFG Holding (+2.7%).

In the red: GB Corp (-3.4%), Ibnsina Pharma (-2.1%), and Beltone Holding (-1.3%).

CALENDAR

MAY

18 May (Sunday): Aqarmap’s Egyptian-Saudi real estate summit, at the Nile Ritz-Carlton.

18-19 May (Sunday-Monday): International Monetary Fund MENA Research Conference, Cairo, Egypt

18-20 May (Sunday-Tuesday): First Arab International Exhibition for Sustainable Development

22 May (Thursday): Central Bank’s Monetary Policy Committee to meet to decide interest rates

25 May (Sunday): Social Education Summit 2025, Cairo, Egypt

30-31 May (Friday-Saturday): Africa Business Summit, London, UK

Egyptian Exporters Association (Expolink) exhibition, Italy

Egyptian-Russian Business Forum

May 2025: Egypt-Singapore Business Forum, Cairo

May 2025: Egyptian-US Investment Forum

JUNE

2-4 June (Monday-Wednesday): Manufacturing and packaging forum ProPak MENA and Fi Africa 2025, Egypt International Exhibition Centre.

3 June (Tuesday): S&P Global to release PMI data for May recording non-oil private sector activity

10 June (Tuesday): Capmas expected to publish inflation data for May

MPs approveextension of tax dispute resolution window until 30 June 2025, with potential for further extension

Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

Realme to open smartphone factory

IFC President Makhtar Diop to visit Egypt

JULY

10 July 2025 (Thursday): Monetary Policy Committee’s fourth meeting

15-16 July 2025 (Tuesday-Wednesday): Egypt Mining Forum

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

Etihad Airways to launch twice-weekly flights to Alamein

AUGUST

28 August 2025 (Thursday): Monetary Policy Committee’s fifth meeting.

Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

Egypt Otsuka’s nutritional products factory in Tenth of Ramadan to begin operations, with exports to Gulf countries expected by January 2026

OCTOBER

2 October 2025 (Thursday): Monetary Policy Committee’s sixth meeting.

NOVEMBER

20 November 2025 (Thursday): Monetary Policy Committee’s seventh meeting.

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

DECEMBER

1-4 December: Egypt Defence Expo (EDEX), Egypt International Exhibition Centre.

25 December: (Thursday): Monetary Policy Committee’s eighth meeting.

EVENTS WITH NO SET DATE

1Q 2025: The Egyptian-Italian business forum

1Q 2025: Investment Minister Hassan El Khatib to visit Italy

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

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

Mid-2025: EGX launches sustainability index.

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

2Q 2025: Safaga Terminal 2 to start operations

1H 2025: EGX launches a sharia-compliant sustainability index.

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

1H 2025: The Egyptian-US Investment Forum.

1H 2025: The Egyptian Mineral Resources Authority will relaunch a global tender for gold exploration through Shalateen Mineral Resources company.

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

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

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

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

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

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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