Valu announces intention to float

Wednesday, 28 May 2025

Valu announces intention to float

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Today at a glance

Capital markets

Valu shares to start trading the last week of June.

ECONOMY

IMF, authorities made “good progress” during Fund mission’s recent visit.

Outsourcing

Gov’t targets USD 21 bn from digital exports over the coming five years.

Manufacturing

China’s Shaoxing to set up USD 7 mn textile factory in Qantara West.

Real estate

A Capital Holding to invest EGP 20 bn in its Marriott Residences Heliopolis project.

DEBT WATCH

Fawry unit closes its inaugural EGP 497.5 mn securitized bond issuance.

ALSO ON OUR RADAR

FinMin forms committee to address tax issues facing investors.

PLANET FINANCE

Giant US retailers mull going private as tariff tensions bite.

HARDHAT

Gov’t draws ambitious plan to return to energy export market with USD 5 bn in exports by 2030.

WHAT WE’RE TRACKING TODAY

Could Egypt set up its own regasification plant?

Good morning, friends. For the second morning this week, we lead the issue with capital markets news — Valu has announced its intention to float and marked the week of 22 June as when it would start trading on the EGX.

PSA-

We have a date for Eid Al Adha: Dar Al Ifta announced that the first day of Eid Al Adha will fall on Friday, 6 June. We’ll be on the lookout for an announcement from the cabinet about which days the public and private sectors will have off.

WEATHER- It’s another spring day in Cairo, with the capital in for a high of 31°C and a low of 20°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 26°C and a low of 18°C.

** DID YOU KNOW that we 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.

WATCH THIS SPACE-

#1- Our EUR 1.8 bn investment guarantee mechanism with the European Union will launch in June, Planning and International Cooperation Minister Rania Al Mashat announced at the Egyptian-Swedish Business Forum, according to a ministry statement. The guarantees were previously said to mobilize around EUR 5 bn in investments.

The key sectors: The move is expected to boost private investments across a number of sectors — energy, infrastructure, digitalization, water, agriculture, and climate change mitigation — and is expected to help mobilize additional funding from European and international development banks.

#2- Our very own regasification plant? The Madbouly government is looking into building an onshore regasification plant at the idle Idku liquefaction facility with investments of USD 150-200 mn, an unnamed government official told Asharq Business. The plant will have an initial capacity of around 750k cubic meters per day, which will increase to 1 mn cubic meters per day at a later stage. Discussions for the project are still in the early stages, and nothing has yet been formally agreed on, an informed source told EnterpriseAM.

Why? The plant will help cut down on the cost of importing energy and will reduce the country’s reliance on leased regasification units. Egypt will have four regasification vessels leased by the end of 2026, with a combined capacity of 3 bn cubic feet per day, to help meet rising energy demand.

When can we expect the plant to come online? Constructing the plant will take around 30 months, Asharq’s source said, adding that preliminary studies for the project have been completed. Whether the plant will move forward or not is up for a vote later this month, they said.

DEBT WATCH-

Sovereign debt ins. costs hit their lowest level in more than two months, reaching 5.28% last week after the USD dipped to EGP 49.90 — its lowest level since the beginning of the year.

The price of Egyptian sovereign sukuk fell to USD 102.2 from USD 102.4, and the yield on maturity rose to 7.74% from 7.56%, driven by tensions in the wake of the recently-announced US tariffs on the EU, according to the weekly sovereign sukuk performance report seen by EnterpriseAM.

REMEMBER- The Finance Ministry is awaiting the most opportune time to complete the issuance of international sukuk.

THE BIG STORY ABROAD-

The Trump administration is pressing ahead with its crackdown on international students, halting new visa interviews and preparing to expand social media vetting. The push — which has targeted Harvard and other Ivy League schools with more and more restrictions — is framed as an effort to combat anti-Semitism, following last year’s widespread pro-Palestinian protests in US universities.

ALSO- Trump and friends are doing business as usual: Trump Media, largely owned by US President Trump and the parent company of Truth Social, announced it will raise USD 2.5 bn to invest in Bitcoin, by selling 58 mn shares as well convertible bonds. Meanwhile, Elon Musk’s brain-mapping startup Neuralink reportedly raised USD 600 mn in a funding round that put its valuation at USD 9 bn.

CLOSER TO HOME- Germany is considering restricting military exports to Israel, citing concerns about targeting civilians. “The massive military strikes by the Israeli army in the Gaza Strip no longer make any sense to me,” Chancellor Friedrich Merz said yesterday.

The shift in tone from allies of Israel coincides with a chaotic first day for the US and Israel-backed Gaza Humanitarian Foundation, which saw thousands of Palestinians overrunning aid sites in Rafah, shots fired in the air and private security officials fleeing the scene. The little-known foundation’s operations were widely expected to be disastrous, mired in the last few days by a shady contracting process with Tel Aviv and multiple resignations of senior staff.

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

In today’s issue: We dive into the Madbouly government’s ambitious plan to return to the energy export market with USD 5 bn in exports by 2030.

Tags:

oil and gas WHAT WE’RE TRACKING TODAY

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.

Capital markets

Valu to start trading on the EGX during the last week of June

Valu will start trading on the EGX during the week of 22 June following an in-kind dividend distribution by EFG Holding, the fintech giant said in its intention to float (pdf).

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

How big of a piece is each shareholder getting? EFG Holding shareholders will receive 1 Valu share for every 3.327 EFG Holding shares they hold as of 12 June, based on Valu’s book value of around EGP 0.8 per share, according to a separate disclosure (pdf) by EFG Holding. There’s no lockup period, which means Valu shareholders can opt to hang onto their shares or offer them for sale anytime after trading starts. Valu still needs to wrap-up regulatory approvals before the start of trading.

EFG Holding will remain the controlling shareholder of U Consumer Finance, keeping an effective 67% stake.

REMEMBER- This isn’t an IPO. EFG Holding will take U Consumer Finance — which owns and operates the Valu brand — public by giving its shareholders stock in U equivalent to about 20.5% of the company. The financial services giant is giving its shareholders stock in U as a dividend. The “move unlocks value for EFG Holding shareholders by crystallizing the true market worth of a key asset,” EFG Holding Group CEO Karim Awad told us when the transaction was first announced.

EFGH shareholders are in line for a windfall worth north of USD 64 mn, by our math. U is valued at EGP 15.6 bn (c. USD 310 mn at today’s rate of exchange), according to a report by independent financial advisor BDO Keys Financial Consulting released back in March. EFG Holding is distributing U shares representing about 20.5% of the company, making the transaction worth c. EGP 3.2 bn (USD 64 mn).

What to watch for: Could this be Amazon’s cue to buy in? Amazon acquired USD 10 mn worth of EFG Holding’s London-listed global depositary receipts (GDRs) in 2022, with the option to convert them into a 4.255% stake in Valu’s parent company at its USD 235 mn valuation at the time. That suggests U’s valuation has risen north of 30% since the transaction date based on the fair value calculated by BDO Keys. Amazon’s conversion is contingent on a third-party investment in Valu through a sale, IPO, or other liquidity event.

What they said: “This listing marks a significant milestone in Valu’s journey and is a testament to the disruptive and positive impact we have made in the market as one of the leading fintech players in the MENA region and Egypt’s leading fintech platform. With the full backing of our parent EFG Holding, we’re unlocking new value for our customers and shareholders, and accelerating our mission to democratize access to finance in the region,” CEO Walid Hassouna said.

Going public with Valu is the right move for EFG Holding. EFGH created the modern non-bank financial services industry in Egypt, but its shares got effectively zero credit. Taking Valu public this way allows EFG Holding to create significant future upside for its shareholders — and to do so without a messy argument over valuation at a time when new paper on the EGX has been scarce.

Our take: The EGX really needs new paper in the market, and Valu is a household name in Egypt. Foreign institutional investors will be watching this one closely. What we would particularly like to see would be for Banque du Caire to join Valu in going public. Taking BdC public in a successful, well-run IPO — with the right anchor shareholders on board — would send an unequivocal signal that it’s time to look at Egyptian equities once again now that we have a functioning FX market and that the Sisi administration is holding the course on much-needed economic reforms.

BACKGROUND- Valu got the green light last week to temporarily list 2 bn shares on the EGX, with a nominal value of EGP 0.10 per share — bringing its issued capital to EGP 200 mn.

ADVISORS- EFG Hermes Investment Banking is financial advisor on the transaction. Zulficar & Partners and Gibson, Dunn & Crutcher are serving as counsel.

Tags:

capital markets EGX IPO watch ValU

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ECONOMY

IMF, authorities made “good progress” during Fund mission’s recent visit

How is the IMF’s fifth review of our loan program panning out? The IMF and Egyptian authorities made “good progress on the assessment of economic performance and implementation of policy commitments” during the time the team from the Fund spent in Cairo earlier this month, according to an IMF statement.

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

ICYMI- A team from the IMF was in Cairo earlier this month to meet with officials from the central bank, and the finance, investment, and international cooperation ministries for its fifth review of the country’s Extended Fund Facility arrangement. The two sides took part in discussions centered around economic and financial policies “that could underpin the completion of the fifth review.”

The fifth review will unlock a USD 1.3 bn. While no timeline has been confirmed yet, we can expect the next disbursement in June, one of our sources previously told us.

We’re doing something right: The statement highlighted a notable y-o-y increase in the private sector’s investment share, which reached 60% in the first half of the current fiscal year, up from the 38.5% recorded during the comparative period last year. The Fund also noted efforts to modernize and streamline tax and customs reforms, saying they are starting to show results.

But we still have ways to go: The Fund urged further revenue mobilization through widening the tax base and streamlining tax exemptions to support higher social and development spending.

“With the macroeconomic stabilization now underway, it is critical for Egypt to carry out deeper reforms to unlock the country’s growth potential, create high-quality jobs for a growing population, and sustainably reduce its vulnerabilities and increase the economy’s resilience to shocks,” Mission Chief for Egypt Ivanna Hollar said.

More needs to be done on the privatization front: “Decisively reducing the role of the public sector in the economy and leveling the playing field for all economic agents should be key policy priorities. The implementation of the State Ownership Policy and the asset divestment program in sectors where the state has committed to reduce its footprint will play a critical role in strengthening the ability of the private sector to better contribute to economic growth in Egypt,” Hollar said.

REMEMBER- The Madbouly government expects to raise USD 4-5 bn from selling stakes in 11 state-owned companies during the fiscal year 2025-2026 as a part of its privatization program, a government source previously told EnterpriseAM.

2025 has been pretty dry for privatization: While we kicked in 2025 with big privatization aspirations after Prime Minister Moustafa Madbouly announced that the government is planning to offer up stakes in ten state-owned companies throughout the year, we are yet to see any of that materialize.

What’s next? The two sides will continue their discussions regarding policies and reforms virtually, paving the way for the completion of the fifth review.

Tags:

economy IMF

Outsourcing

Egypt targets USD 21 bn from digital exports over the coming five years

Egypt is aiming to bring in USD 21 bn from digital exports over the next five years, a government source told EnterpriseAM. The sector is currently seeing strong inflows of FDI, which is driving growth and prompting an expansion in outsourcing service centers.

(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: More than half of the figure — USD 13 bn — is expected to come from outsourcing services alone, according to the source.

As things stand: Egypt’s digital exports jumped to USD 6.9 bn in 2024 — up from USD 1.5 bn ten years earlier. This jump helped boost the ICT and electronics sector’s contribution to the country’s GDP to 5.8% in the fiscal year 2023-24, up from 3% in the fiscal year 2013-14.

And for the years to come: The government wants to see digital exports bring in some USD 8 bn next fiscal year.

The government wants the ICT sector to contribute 8% to the country’s GDP by 2030, according to a government document seen by EnterpriseAM. To support that goal the government wants to increase the number of outsourcing service centers to 56, expand the mobile tower network to 45k, set up 20 fiber optic manufacturing plants, launch a freezone for ICT services in the SCZone, and training 1 mn people in the sector, up from 265k currently. The government also aims to grow the sector’s output to EGP 1.1 tn by the end of FY 2028-2029.

To make the goal a reality: The government is looking to attract more startups to base their remote outsourcing operations in Egypt. The source added that around 175 outsourcing companies have already established 200 centers across the country, creating jobs for around 60k professionals in digital services.

To sweeten the pot: The government is considering fresh incentives to attract further investments in the sector, the source said. The cabinet has approved a 70% increase in investment allocations for the upcoming fiscal year to accelerate digital transformation efforts.

Tags:

CIT ministry digitization infrastructure outsourcing

Manufacturing

China’s Shaoxing to set up USD 7 mn textile factory in Qantara West

The Qantara West Industrial Zone is getting another Chinese textile project, with Shaoxing Beiqi Textile inking a contract with the Suez Canal Economic Zone (SCZone) to establish a USD 7 mn readymade garments factory, according to an SCZone statement. The Chinese company will fully self-finance the project, which is expected to create 3k direct jobs.

Export is the name of the game, with 90% of the 10 mn pieces of annual output earmarked for export and only 10% destined for the local market.

This brings Qantara West’s total number of contracted projects to 21, with a combined investment cost of USD 603.5 mn and the expectation that 30.6k new jobs will be created.

A textile hub for Chinese investors: A long list of Chinese players have inked agreements to set up textile factories in the Qantara West Industrial Zone, including Hightex Co., Ltd Hangzhou, GS Global Sourcing, Guangdong Hongxin Textile, Top New Garment Group, Jiangsu Guotai, and Di Seta.

Tags:

China Manufacturing Suez Canal Economic Zone West Qantara Industrial Zone

Real estate

A Capital Holding to invest EGP 20 bn in its Marriott Residences Heliopolis project

Real estate investment firm A Capital Holding will invest EGP 20 bn in its Marriott Residences Heliopolis — Egypt’s first Marriott-branded residential project, Al Borsa reports.

The details: Spanning 27k sqm, the project will house six interconnected towers offering one- to three-bedroom apartments, with hotel services such as concierge, room service, and housekeeping, according to A Capital Holding’s CCO Dalia El Kordy. Amenities include a rooftop sports and a clubhouse.

As things stand: The company launched a new phase of the project — The Signature Tower — this week. The Signature Tower will include 231 units to be delivered in 2028.

REMEMBER- This project highlights Marriott’s growing footprint in Egypt. The hospitality group is also converting the Mogamma building into an Autograph Collection hotel, partnering with Somabay on a beachfront resort in Hurghada, and teaming up with SODIC to launch two Tribute Portfolio hotels in Sheikh Zayed and the North Coast.

Tags:

hospitality real estate

DEBT WATCH

Fawry unit closes its inaugural EGP 497.5 mn securitized bond issuance

Fawry MSME Finance closed its maiden securitized bond issuance, raising EGP 497.5 mn, as part of a wider securitization program, the parent company said in a press release (pdf). The 13-month, single-tranche bond was rated A- by Middle East Ratings and Investor Services (MERIS) and is backed by a securitized portfolio of receivables. There’s no publicly available information about the size of the program or the timeline of future issuances under it.

The rationale: The move comes as the Fawry unit looks to diversify funding and meet rising credit demand. “This securitization is a strategic step in our mission to scale our lending operations and provide greater access to finance for MSMEs across Egypt,” Fawry MSME Finance CEO Alexander Levchenko said.

Investor confidence ran high: Levchenko added that “strong investor appetite” for the firm’s first-ever securitized bond reflects market confidence in its lending model, portfolio quality, and the broader growth prospects of the domestic MSME sector.

ICYMI- Fawry is casting a wider net: The Financial Regulatory Authority granted Fawry MSME Finance an Islamic financing license back in March, opening the door for it to offer shariah-compliant finance that is “tailored to the growing demand for Islamic finance in Egypt.”

ADVISORS- CI Capital served as financial advisor, arranger, issuance manager, and bookrunner on the transaction.

Market reax: Fawry’s share price rose 0.89% yesterday to close at EGP 11.51.

Tags:

debt watch Fawry Fintech

LAST NIGHT’S TALK SHOWS

El Sisi, Sanchez’s call took over the airwaves last night

President Abdel Fattah El Sisi’s phone call with Spanish Prime Minister Pedro Sanchez dominated the airwaves last night, with the nation’s talking heads dedicating airtime to the conversation between the two leaders. The conversation centered around the situation in Gaza, developments in Syria, Lebanon, and Libya, with both sides stressing the importance of preserving the unity and territorial integrity of the countries. Al Hayah Al Youm (watch, runtime: 1:06) and Masa’a DMC (watch, runtime: 0:57) had coverage.

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

Tags:

DIPLOMACY Gaza LAST NIGHT’S TALK SHOWS Middle East politics

ALSO ON OUR RADAR

FinMin forms committee to address tax issues facing investors

TAX-

The Finance Ministry formed a permanent committee to address tax issues facing investors and support the business community, according to a decision seen by EnterpriseAM. The committee, launched in cooperation with the Federation of Egyptian Chambers of Commerce, will study tax and customs obstacles, review legislative proposals, organize seminars to promote voluntary tax compliance, and provide solutions to support economic activity and simplify procedures.

INVESTMENT WATCH-

East Lane Partners invests in Cloudzlab: Private equity firm East Lane Partners has invested an undisclosed amount in Egypt-founded, UAE-headquartered Cloudzlab, according to a statement. The fresh funds will help Cloudzlab expand regionally, starting with an office in Saudi Arabia set to open by 3Q 2025 and enhance its tech delivery capabilities, East Lane Partners Co-Founder Sherif Nagui told EnterpriseAM. The company is also planning to expand its capabilities through strategic partnerships to expand its offerings across CRM, data solutions, AI, and Agentforce — a platform that allows businesses to set up autonomous AI agents.

About Cloudzlab: Cloudzlab is a fast-growing Salesforce partner specialized in delivering scalable CRM solutions, consultancy, and integration services. The firm has been the leading homegrown Salesforce partner in Egypt, experiencing a five-fold growth over the past four years. Following the East Lane Partners investment, Cloudzlab plans to increase the team from 80 to 200 people in the coming 18-24 months, Nagui added.

STARTUPS-

#1- COREangels MEA launched a USD 10 mn fund to support early-stage startups across the Middle East and Africa, in partnership with PTS Holdings and the Arab Academy, according to a statement (pdf). The fund will focus on supporting and funneling funds into sustainability-aligned tech startups, according to COREangels MEA Co-Founder Maha Mandour.

The network offers investment support of up to USD 150k, as well as technical and advisory services to help startups tap into new markets, she added.

REMEMBER- COREangels launched its Cairo-based MEA fund back in 2023, which is jointly managed by COREangels and PTS Holdings’ ORO Partners. The fund invests in pre-seed and seed-stage tech startups across the MEA region.

#2- DistrupTech plans new fund, investments: Local fintech- and tech-focused VC DistrupTech Ventures is planning to launch a second fund next year and begin exiting some of its current investments in 2027, founder Mohamed Okasha said during a presser attended by EnterpriseAM. The firm plans to invest USD 12 mn over the coming 18 months, Okasha added.

EXPANSION-

Local player Zeinox and Omani state-owned energy player OQ will establish a plastic factory in Oman under a USD 2.6 mn investment agreement between the two, the Omani Embassy said in a statement. The project is being supported by below-market prices for input plastics, reduced industrial land prices, and other incentives from the Omani government.

Tags:

ALSO ON OUR RADAR Disruptech Ventures Finance Ministry Manufacturing Oman startups tax

PLANET FINANCE

Giant US retailers mull going private as tariff tensions bite

Several major retailers are currently in talks to sell to investment firms and companies after US President Donald Trump's trade war wreaked havoc on their valuations, writes Reuters. The rapidly-changing tariff announcements left retailers in a limbo and unable to provide earnings guidance amid trade policy instability. Investment bankers think that we could soon see more retailers aggressively pursuing private deals if Trump does not lock down a clear trade policy soon.

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

Going private is becoming an increasingly attractive option for retailers, as they will become more immune to the unpredictable fluctuations in the market. They can also shield their earnings because they will no longer have to answer to financial reporting requests and other regulatory restrictions.

Public retailers are not overplaying the impact of market turmoil. Shoe company Skechers, acquired earlier this month by 3G Capital, saw its market value dip to USD 7.4 bn in late April, down from USD 11.85 bn in January, one day before Trump announced tariffs against China. Like Sketchers, many retailers manufacture their goods overseas, making them more prone to downsides of tariff announcements.

Some retailers may find going private easier than others because a company structure drastically influences the signing of these agreements. Companies with a single investor or family companies like Skechers don’t need a broad shareholder approval, meaning that public companies with a similar structure in the retail sector could go private sooner than we think.

US tensions with China flared up again shortly after they cooled things off during recent talks in Geneva that led to monetary calming of global markets. The two countries struck a fragile truce to roll back tariffs for an initial period of 90 days. The US’ repeated warnings to its companies to avoid using AI chips manufactured by China’s Huawei provoked the ire of the Chinese who said that such warnings “undermine” the Geneva talks, casting doubts on whether the 90-day truce will continue its full course.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. Japan’s Nikkei is looking at gains of 0.5% and the Kospi is up 1.8%. Meanwhile, both the Shanghai Composite and the Hang Seng are in the red, down 0.1% and 0.3%, respectively.

EGX30	32,397	+1.5% (YTD: +8.9%)
USD (CBE)	Buy 49.73	Sell 49.86
USD (CIB)	Buy 49.75	Sell 49.85
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	10,925	-1.4% (YTD: -8.0%)
ADX	9,674	+0.2% (YTD: +2.7%)
DFM	5,505	+0.4% (YTD: +6.7%)
S&P 500	5,922	+2.1% (YTD: +0.7%)
FTSE 100	8,778	+0.7% (YTD: +7.4%)
Euro Stoxx 50	5,415	+0.4% (YTD: +10.6%)
Brent crude	USD 64.29	-0.7%
Natural gas (Nymex)	USD 3.40	+1.9%
Gold	USD 3,328	-2.0%
BTC	USD 109,158	0.0% (YTD: +16.4%)
S&P Egypt Sovereign Bond Index	870.3	+0.1% (YTD: +11.9%)
S&P MENA Bond & Sukuk	143.0	+0.1% (YTD: +2.2%)
VIX (Volatility Index)	18.96	-7.8% (YTD: +9.3%)

THE CLOSING BELL-

The EGX30 rose 1.5% at yesterday’s close on turnover of EGP 5.2 bn (10% above the 90-day average). Regional investors were the sole net buyers. The index is up 8.9% YTD.

In the green: Beltone Holding (+6.8%), GB Corp (+6.3%), and TMG Holding (+5.4%).

In the red: Sidpec (-4.0%), Madinet Masr (-1.8%), and Egypt Aluminum (-1.5%).

Tags:

Financial Markets Planet Finance

HARDHAT

Egypt draws ambitious plan to return to energy export market with USD 5 bn in exports by 2030

Egypt is working to not just cut down its energy import bill, but become a regional energy exporting powerhouse under a plan detailed in a government document seen by EnterpriseAM. While our energy import bill is expected to reach a burdensome USD 10 bn for the next fiscal year, the state thinks it can reverse its energy trade fortunes and bring in USD 5 bn in energy exports by the end of the decade. This would raise the sector’s contribution to GDP to 8.0% by 2030, up from 5.8%.

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

To do this, the government is looking to ramp up private investment, increasing it to EGP 350 bn by 2030 from a projected EGP 208 bn in the next fiscal year. Outside of investment, the private sector will play an increasing role in developing the bidding system for concessions and give inputs on how to make projects in Egypt simpler and more attractive for energy players.

Fresh incentives to push energy players: The Oil Ministry has been offering new incentives to energy players that include increasing production sharing ratios with foreign companies in exchange for new investments and enhancing exploration efforts. The government also agreed with many major energy players to raise the purchase price of energy produced for both local and international players.

Investment will also come from state coffers, with an earmarked EGP 232 bn for the country’s hydrocarbon sector. Around 40% of this will go toward natural gas — a key energy source, which is currently racking up the import bill in the form of costly LNG imports. The money will be put to use improving the national gas network, improving existing refineries in Tanta and Mostorod, establishing a fuel production complex in Suez, and constructing a new distillation unit and a gas recovery unit for the Assiut Oil Refining Company.

The government is also working to boost production by improving infrastructure and refining, which it hopes will help it increase production 18.8% from the current fiscal year to EGP 1.7 tn in the next, assuming prices stay the same. After this, it will work to increase the value of production further to EGP 2.7 tn by the fiscal year 2028-29.

The government’s plan for hydrocarbons will rely on crude production, which will make up 49% of the extraction sector, alongside natural gas at 29% and other extractions at 23.5%.

But despite the expected increase in gas output, a growing population and economy will increase demand, as 289k housing units were added to the national stock of 15.2 mn in the first half of the fiscal year alone. Alongside this is a growing number of factories and commercial units that also use natural gas as their source of energy.

Also accelerating natural gas demand is an uptick in cars that run on compressed natural gas. In the first half of this fiscal year, the number of cars running on natural gas increased by 26.4k to 579k, while natural gas fueling stations increased by 17 to 810.

In this rush to boost output, the government hasn’t forgotten its mission to reduce emissions, with a target to reduce them by 65%. To help achieve this, the government has embarked on a project with the World Bank to reduce gas flaring.

Work is already underway to expand production, with the government setting up 13-15 new oil and gas concession agreements to be signed in the second half of 2025, an unnamed government source told Al Arabiya. This comes under a plan to offer around 32 investment windows and ink agreements across various concession areas such as the Suez Gulf, West Delta, West Mediterranean, and the Maghara region, a government source told EnterpriseAM.

Your top infrastructure stories for the week:

Egypt, Sweden explore ICT cooperation: ICT Minister Amr Talaat and the Swedish Foreign Trade Minister discussed cooperating on digital infrastructure and capacity building. The two sides also discussed efforts to bring in Swedish investment into Egypt’s outsourcing sector, with plans to formalize cooperation with an MoU. (Statement)
Hassan Allam Construction and Arab Contractors will renovate Alexandria’s Raml Tram, which includes the construction of a modern maintenance depot, elevated viaducts at busy intersections, and upgrades to 24 stations.

Tags:

energy Hardhat oil and gas Oil Ministry trade

CALENDAR

MAY

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

JUNE

1-2 June (Sunday-Monday): Cruise Egypt Forum, Hilton Cairo Heliopolis Hotel.

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

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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