West Delta wells to add 100 mcf/d of gas production in July amid energy supply squeeze

Wednesday, 18 Jun 2025

West Delta wells to add 100 mcf/d of gas production in July amid energy supply squeeze

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Today at a glance

Energy

Another 100 mn cubic feet per day of gas production to be added in July with West Delta addition.

Privatization

Finance Ministry to launch eight new PPP projects within the next four months totalling EGP 40 bn.

Capital markets

EFG Hermes to double down on Saudi with new services.

Development finance

The private sector now gets the lion’s share of Egypt’s development finance.

Economy

Capital Economics, Fitch provide insights over the impact of the Israel-Iran escalation on the MENA region.

Also on our Radar

Egypt Kuwait Holding to sell entire 63.4% Delta Ins. stake.

PLANET FINANCE

Family offices shift focus to private credit.

What We're Tracking Today

EGP strengthens against the greenback for second day, following Sunday rout

Good morning, all. We’re nearing the end of the week and the news cycle shows few signs of slowing down, with Israel’s escalating war on Iran and plenty of local business and economic news closer to home.

In today’s issue, we’ve got encouraging news of new gas wells set to go online next month, big-ticket PPPs in the works, a new Hyatt hotel, and more. We’re full as it is, so let's jump in.

PSA-

WEATHER- The cool down continues in Cairo today, with a high of 33°C, a low of 23°C, and partly cloudy skies, according to our favorite weather app.

Although it's a few degrees cooler in Alexandria than yesterday, with a high of 30°C, a low of 19°C, and partly cloudy skies.

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

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EGP WATCH-

The EGP continued to appreciate against the greenback yesterday for the second consecutive day, despite continued escalations in the conflict between Iran and Israel.

The EGP strengthened by EGP 0.10 and more across state and private banks by the end of trading yesterday, while interbank USD trading returned to normal levels, a source in the banking sector told EnterpriseAM. The past two days saw transactions totaling USD 1.3 bn, in addition to higher-than-usual trading volumes compared to last week — all of which took place to meet demand for foreign investors’ exits from the secondary market and the EGX, the source said.

ALSO- Egypt paid some USD 1.5 bn in bond repayments by the end of last week, despite current developments that may hinder Egypt's plans to move forward with diversifying its public debt instruments and issuing new sovereign sukuk locally or abroad, our source added, without disclosing how the bond repayment was secured.

BUDGET WATCH-

The House approved the EGP 6.8 tn general state budget for FY 2025-2026, representing around a third of the country’s GDP. The allocation consists of EGP 4.6 tn in expenditures, EGP 2.1 tn for local and foreign debt servicing, and EGP 102.8 bn worth of financial asset holdings. The government aims to raise some EGP 3.1 tn in revenues in the upcoming fiscal year, as set forth in the draft budget submitted to the House in April.

REMEMBER- Interest spending is set to make up the lion’s share of the government’s total expenses at EGP 2.3 tn, with subsidies coming in second at EGP 742.5 bn, and wage payments standing at EGP 679.1 bn.

Where will the income come from? Taxes make up the bulk of next year’s revenue target at EGP 2.7 bn, grants account for EGP 9.5 bn, and other revenues are projected at EGP 455 bn.

AND- The budget shows that the state plans to borrow some EGP 3.6 tn — or 17.5% of GDP — in the next fiscal year, confirming the figure indicated in a government document seen by EnterpriseAM back in April.

WATCH THIS SPACE-

The Housing Ministry’s Social Housing Fund is looking to issue green bonds alongside a number of international institutions and local banks in a move to diversify funding sources and secure better terms, ensuring the sustainability and continuity of the program, according to a New Urban Communities Authority statement citing the fund’s CEO May Abdel Hamid as saying. Abdel Hamid did not specify the exact size of the issuance, or when it will be carried out.

THE BIG STORY ABROAD-

An increasingly hawkish Trump is continuing to dominate the news cycle, with the US president reiterating his calls overnight for an unconditional surrender — needless to say in all caps — and threatening to kill Iranian Supreme Leader Ayatollah Ali Khamenei and describing him as an “easy target.”

But the real and growing concern is if Trump decides to turn words into actions and formally join Israel’s war on Iran, potentially using its more advanced hardware to target deep underground facilities that the Israelis are unable to do. Pointing to the increased likelihood of the US’ direct involvement, Trump said the country’s patience was “wearing thin,” described how “we” have established dominance of Iranian airspace, and directed the forward deployment of the US air power. (Reuters | New York Times | Financial Times | Bloomberg | Guardian)

While the world’s attention turns to Iran, Israel’s starvation of Gaza and daily massacres have continued, the most recent of which saw 59 Palestinians slaughtered yesterday as Israeli tanks fired into crowds of people waiting for desperately needed food aid. “The people are dying, they are being torn apart, to get food for their children,” one eyewitness told Reuters. The killing of those seeking aid in what the UN describes as the “the hungriest place on Earth” has become a depressingly familiar story coming out of the besieged strip in recent weeks, despite the entire population of Gaza being at risk of famine.

Elsewhere in the strip, at least another 14 people were killed, bringing the day’s death toll to at least 73. But with the conflict now in its 20th month and developing events elsewhere taking away diplomatic and media focus, the relative silence on Gaza in recent weeks has been deafening. (Reuters | New York Times | Financial Times | Guardian)

*** 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 break down the government’s electricity targets and the roadmap to achieving them.

Tags:

currencies EGP foreign exchange

Whether you’re diving into turquoise waters, catching golden hour from your terrace, or just letting time drift by — Somabay is summer, redefined. Your ultimate escape, every single time.

Energy

Egypt to add 100 mn cubic feet per day of gas production in July with West Delta addition

Phase 11 of the West Delta Deep Marine concession is set to go live next month, bringing an additional — and very much needed — 100 mn cubic feet per day (mcf/d) of natural gas, an unnamed government source told Al Arabiya Business. Production will begin with two wells — Sparrow with 60 mcf/d and Sinad with 40 mcf/d — while a third well is currently being fast-tracked for tie-in to the national gas grid before the end of 3Q, with an initial output of 50-60 mcf/d.

The expected quantities of gas will help meet about 1.6% of the country’s average summer demand and about 1.4% in the most energy demand-intensive periods. Egypt’s natural gas output currently stands at around 4.2 bcf/d, well below average summer demand of 6.2 bcf/d — the figure climbs to 7 bn cf/d during peak consumption months.

With theLeviathan shut-off and the risk of more energy disruptions to come, we need increases in domestic production now more than ever. Over the weekend, Tel Aviv shuttered the offshore field as well as the Karish field in the wake of military strikes on Iranian targets, taking away 800 mn cubic mcf/d from the national gas grid. Reduced gas flows from Israel not only mean an increased reliance on significantly more expensive LNG imports, but also put a significant strain on the country’s efforts to keep the lights on ahead of high-demand summer months.

BACKGROUND- Burullus Gas — a JV between Shell Egypt, EGPC, EGAS, and Petronas — is the operator of the concession. Phase 11 follows the completion of phase 10, where the three wells were added to the production map with a combined output of 160 mcf/d of gas and 2k barrels of condensate per day, the source added.

Shell alongside Petronas is investing some USD 300 mn into the 11th phase of the concession, while elsewhere it’s exiting its two Egyptian Red Sea exploration blocks, we heard in March.

AND- Eni is aiming to begin production from the Zohr 6 well before the end of the month, with initial output estimated at 40-50 mn cubic feet per day, an unnamed government source told Al Arabiya Business. The Italian energy giant is accelerating development through Petrobel — its JV with Egyptian General Petroleum Corporation — to meet rising domestic demand.

Tags:

energy oil and gas

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Privatization

Finance Ministry to launch eight new PPP projects within the next four months totalling EGP 40 bn

The Finance Ministry is readying EGP 40 bn worth of public-private partnerships (PPP) within the next four months, the head of the ministry’s PPP unit Ater Hanoura told EnterpriseAM. The eight projects — currently equivalent to nearly USD 800 mn — include desalination plants, wastewater and industrial sewage treatment facilities, electricity substations, and waste recycling projects as part of the government’s broader efforts to expand private sector involvement in development initiatives, Hanoura added.

Six projects are already open for bidding by both local and international investors, Hannoura added. These include power distribution stations, a sludge recycling plant in Abu Rawash, and wastewater treatment plants, with a combined investment value of EGP 19 bn. These six are part of a larger pipeline of 12 projects worth a total of EGP 61 bn. He noted that 4-8 companies have submitted prequalification applications for each of the current tenders, including both local and foreign firms operating in infrastructure.

Hanoura had previously announced that the government plans to launch tenders worthUSD 3.2 bnby the end of 2024. These include 15 desalination plants with a total cost of USD 3 bn, two of which — one in Dabaa and the other in El Hammam — will be tendered in 4Q 2024 at a combined value of USD 210 mn. The government also plans to launch a tender for a wastewater treatment plant in Sixth of October City worth USD 95 mn, an investor service center valued at USD 10 mn, and 22 schools nationwide at a total cost of USD 60 mn before year’s end.

But PPPs to build schools are on pause until the Education Ministry finalizes land allocations, Hannoura told us, adding that the unit is ready to issue tenders as soon as suitable plots are secured. He clarified that delays to earlier PPP tenders were due to administrative reasons and unrelated to funding or investor appetite.

Tags:

Education Finance Ministry infrastructure privatization watch

ADD Properties is expanding its partnership with US hospitality giant Hyatt Hotels with a new 400-key hotel in the works, under an MoU for the USD 265 mn Giza project, according to a cabinet statement. The Sami Saad Holding subsidiary also looks likely to get a USD 110 mn senior loan from the European Bank for Reconstruction and Development to fund the hotel overlooking the Giza Pyramids and Grand Egyptian Museum, according to the project overview from the lender.

The funds will also be used elsewhere to help the developer refinance or consolidate its existing debts and support other investments in capital expenditures, including land and building acquisitions, property asset renovations, and future capex financing.

REMEMBER- After a ten-year break from the county, ADD Properties — then known by the name Aldau Development — helped bring back Hyatt to the country with the grand opening of the Hyatt Regency Cairo West hotel at Pyramids Heights in 2022. The opening followed a franchise agreement inked between the two for the hotel back in 2019, after the US hotelier giant decided to come back to the country after the Arab Spring shock to the tourism market subsided.

DATA POINT- After adding 7.2k hotel rooms to the country’s total capacity last year, the government is planning to add another 19k hotel rooms this year to meet rising demand.

Tags:

hospitality real estate tourism

Capital markets

EFG Hermes KSA to launch securities lending, borrowing services in 3Q 2025

Our friends at EFG Hermes KSA will launch securities lending and borrowing services in the Kingdom in 3Q 2025, as part of their product offerings expansion, it said in a statement (pdf) yesterday.

The services enable clients to generate passive income by lending out securities that are not actively traded, without the need to sell them. They also allow hedge funds, investors, and major financial institutions to implement arbitrage and hedging strategies when trading.

What they said: “As the Kingdom's capital market continues to evolve, we aim to support liquidity, enhance market efficiency, and create new [prospects] for institutional investors,” CEO Saud Altassan said.

ICYMI- EFG Hermes made a play for the Saudi market last November with the launch of a USD 300 mn Saudi Education Fund, a few months after EFG Holding announced its plan to increase its staff in the Kingdom by 30% to 47 employees amid a rush of IPO activities.

Tags:

capital markets EFG Hermes Financial Markets

Development finance

The private sector now gets the lion’s share of Egypt’s development finance

Egypt is leaning heavily on development finance to plug a widening investment gap — but questions remain over impact and execution. The private sector has mobilized USD 15.6 bn in concessional funding since 2020, according to the Planning and International Cooperation Ministry’s latest Development Finance to Foster Private Sector-Led Growth and Jobs report (pdf), with officials pitching it as a vote of confidence in Egypt’s investment climate.

PRIVATE FINANCE IS BEING REIMAGINED AS PUBLIC STRATEGY-

Why development finance still matters. Even though the private sector already taps into a variety of financing tools, the Planning and International Cooperation Ministry argues that development finance remains distinct in its ability to offer concessional loans, equity investments, blended finance, guarantees, and technical assistance — tools that help de-risk investment and broaden access to strategic sectors such as infrastructure, trade, and innovation. By blending public-interest development instruments with market-driven capital, the government says it can more effectively channel funding into national priorities.

The report outlines how these tools — both direct and intermediated — are being deployed to improve the business climate, support structural reforms, and increase access to capital for SMEs and startups. The strategy hinges on a coordinated effort with multilateral and bilateral development partners to provide financial and advisory support across four main pillars: infrastructure, human capital and innovation, green transformation, and policy reform. The ultimate aim, officials say, is to stimulate a more resilient, competitive private sector capable of driving long-term, inclusive growth.

PRIVATE SECTOR BEATS GOV’T IN 2024 DEVELOPMENT FINANCE INTAKE-

A record year: Development finance to the private sector came in at USD 4.2 bn last year, exceeding that directed to the government for the first time. “From January to May 2025, the financing volume reached USD 1.14 bn, reinforcing expectations for continued momentum,” the report read.

Zooming out: More than 30 development partners have contributed to the USD 15.6 bn the private sector raised over the past five years — including the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), International Finance Corporation (IFC), and regional players like the AfDB and the OPEC Fund. “This reflects increasing international confidence in the Egyptian investment climate and the rising role of the private sector in driving development,” the report said.

EUROPE IS LEADING THE PRIVATE SECTOR FINANCING PUSH-

Europe is writing the checks — and shaping the agenda: Some USD 8 bn — or around 51% of total private-sector development finance mobilized since 2020 — has come from European institutions and governments, according to the report. The EBRD led the pack with a 22% share, followed by the EIB (21%). While not a European institution, the IFC accounted for 19% of total private-sector financing — the third-largest individual contributor.

Egypt retained its spot as the EBRD’s largest country of operations in 2024, with the lender committing over USD 1.5 bn in new financing — 98% of which was directed to private-sector projects spanning renewables, agribusiness, transport, and industry. The EIB kept up its SME push, channeling funds through major local banks while stepping up direct corporate lending — including its first post-2010 loan to Telecom Egypt.

The EU upped Egypt’s EFSD+ funding target to EUR 10.8 bn: The EU has raised its investment target for Egypt under the European Fund for Sustainable Development Plus (EFSD+) to EUR 10.8 bn, up from a previous EUR 9 bn, as part of efforts to scale up support for private-sector-led growth and green transformation, the report reads.

Where the money is going: Around EUR 5.8 bn has already been mobilized through guarantees and blended finance tools, with funding routed via institutions like the EIB, the EBRD, and Germany’s KfW. The funds are being deployed through local banks including CIB and QNB.

BREAKING DOWN THE FUNDS-

Financial institutions have emerged as the top recipients of development finance to Egypt’s private sector, accounting for 41.4% of total disbursements. Most of the capital is being routed through commercial banks to fund SMEs and startups, the report notes. Private equity and venture capital funds have pulled in over USD 550 mn combined, with fintech startups capturing a growing share. Local unicorns MNT-Halan and Fawry were among the standout beneficiaries, reflecting rising investor appetite for digital financial services.

The energy sector came in second, taking 25% of total financing. Around USD 4 bn has been mobilized to deliver 4.2 GW in renewable capacity under the state’s Nexus of Water, Food

and Energy program.

Other sectors got some love as well: Development finance to Egypt’s logistics sector has topped USD 1 bn since 2021, backing major PPP projects like the second container terminal at Damietta Port and the Ain Sokhna Port expansion. Manufacturing pulled in USD 618 mn across 18 transactions, with companies like Edita, Beko Egypt, and Kandil Steel tapping funds for export growth, tech transfer, and green upgrades. Technical assistance programs, now worth USD 228 mn, are quietly shaping the ecosystem — supporting MSMEs, women’s inclusion, and energy reform.

EGYPT WANTS THE PRIVATE SECTOR TO DRIVE 65% OF INVESTMENT BY 2027-

The government wants the private sector to account for 65% of total investment by 2027, up from 43% in 2024 and a projected 56% this fiscal year, according to the report. The share is expected to hit 63% in the fiscal year 2025-2026, with the trajectory linked to ongoing asset sales, public-private partnerships, and regulatory reforms meant to create more space for non-state capital.

Achieving this is no easy feat: The report calls for stronger institutional coordination, data-driven policymaking, and deeper engagement with the private sector. Core policy initiatives — among them the State Ownership Policy Document and revised investment promotion strategies — are being framed as key levers to recalibrate the state’s economic footprint, curb market inefficiencies, and spur greater private sector participation across productive industries.

EQUITY AND EXECUTION REMAIN OPEN QUESTIONS-

While concessional funding has climbed in recent years, the bulk of it continues to flow to a narrow group of sectors and high-capacity borrowers — largely concentrated in Cairo. Smaller firms, less visible sectors, and companies operating in underserved governorates remain on the margins, raising concerns about equitable access and the effectiveness of delivery mechanisms.

The report flags the need to improve geographic and sectoral distribution, particularly to better reach firms in underserved governorates, micro and small enterprises, and sectors that lack visibility within donor ecosystems. It also notes that data availability remains patchy — limiting the ability to track project outcomes, benchmark impact, or design more responsive interventions. And while government-led tracking and coordination tools like Hafiz are meant to address the information gap, their scale and adoption are still early-stage.

Tags:

Climate debt development finance EBRD economy EU International Finance Corporation startups World Bank

Economy

Capital Economics, Fitch provide insights over the impact of the Israel-Iran escalation on the MENA region

Israel-Iran escalations have created an air of uncertainty over the MENA region’s economic prospects for the year. The escalating conflict between Israel and Iran will have considerable implications for the MENA region and for the global economy at large — the only question being just how significant the effects will be. Analysts and researchers have said that it is too early to tell just how far the conflict will go, instead giving different scenarios depending on both the intensity and the duration of the war.

The oil market could be particularly affected by the conflict, with Fitch Solutions’ research unit BMI saying in a webinar attended by EnterpriseAM that “all options are on the table” both for the conflict and for its impact on oil prices in the near term. BMI laid out a number of possibilities for oil prices by 3Q:

Iran conducts limited attacks and a new nuclear deal is reached, which would lead to crude oil being priced at USD 60-65 per barrel;
Iran's missile programs are weakened and US does not pursue a new nuclear deal, which would lead to crude oil barrels being priced at USD 60-70 per barrel;
Israel and Iran engage in retaliationary strikes before eventual de-escalation, keeping prices elevated at USD 70 per barrel before stabilizing at between USD 60-80;
Retaliatory exchanges between Israel and Iran lead to military confrontation with the US, leading to prices of USD 75-100;
The situation develops into a broader conflict that pits the US directly against Iran, bringing prices up to around USD 100-150 should a closure of the Strait of Hormuz take place.

“So long as oil exports of producers in the region remain unaffected, the global oil market is set to be well supplied over the next few months on the back of OPEC+’s well-documented pivot towards a faster unwinding of voluntary output cuts,” Capital Economics’ James Swanston wrote in a r esearch note.

As things stand, Gulf countries stand to benefit economically — at least for the time being. “If anything, the Gulf economies benefit for the time being from higher production and oil prices,” Swanston said. This notion was seconded by Fitch’s Head of MENA Country Risk Ramona Moubarak, who said in the webinar that as long as the conflict remains confined to Iran and Israel, GCC economies will only be affected by the air of uncertainty. But in parallel to that, they will benefit from the higher oil prices.

But the overall impact on the GCC remains difficult to gauge at the moment as “risk concerns may delay investment decisions in the region and increase ins. and other costs,” GCC Economist and Khalij Economics Director Justin Alexander told EnterpriseAM previously.

However, Egypt and other non-oil exporting nations like Jordan will face a “greater negative impact,” Swanston said. Coming to a similar conclusion, Moubarak pointed to Egypt’s country’s proximity to Israel, resultant swings in investor sentiment, the risk of capital outflows, higher oil prices raising the current account deficit, and the cutting of Israeli gas flows behind her assessment.

But the real concern for many is if the Iranians decide to close the Strait of Hormuz, which could lead to the cutting off about 30% of the world’s daily oil supply and 20% of global LNG trade, according to a factsheet (pdf) by the International Energy Agency. Closing the strait and cutting off key energy exporters Iran, Iraq, Kuwait, Saudi Arabia, and the UAE from the global market has the potential to completely disrupt global energy supply chains and violently ramp up energy costs, making Egypt’s increased reliance on imported energy even more costly and increasing the risk of severe energy disruptions to the national grid.

“The risk of a ‘closure’ of the Strait of Hormuz is more nuanced than some might suggest, not least because Iran relies on the strait to export its energy flows,” Swanston argued. “It seems unlikely to us that Iran would attempt to mine the Strait to cause long-term disruption to the shipping channel, not least because it would not just disrupt the West but

also Iran’s allies including China,” he said.

Tags:

Capital Economics economy Fitch Solutions Middle East politics

Startup watch

Octane lands USD 5.2 mn in fresh funding to support operational, regional growth

Octane raised USD 5.2 mn in a funding round co-led by Shorooq Partners, Algebra Ventures, and SC Holdings, the local B2B digital payments platform for vehicle-related expenses said in a statement (pdf).

Octane? Co-founded by Amr Gamal in 2022, Octane runs a closed-loop digital wallet that centralizes fuel, maintenance, spare parts, and other vehicle-related expenses on a single platform. The company supports diesel, gasoline, and CNG payments, and is testing EV charging integration. It claims to be the largest fleet payments network in Egypt, with access to 2.4k fuel stations and 400 CNG sites, serving 1.6k corporate clients managing a combined 250k vehicles.

Where’s the money going? Octane will use the newly-raised funds to grow its fleet payments acceptance network, expand across MENA beyond Egypt, and deepen its AI capabilities — including fraud detection and route optimization. The funds will also allow the company to “stay ahead of the shift toward cleaner, more efficient mobility, without adding complexity for our customers,” Gamal said.

What the backers said: “In a market where bn’s leak through inefficiencies and fraud, Octane brings real accountability and control to fleet operators. Their vision extends far beyond fuel, laying the rails for B2B transactions across Egypt’s logistics and mobility sectors. We’re proud to back a team that’s solving today’s pain points while setting the foundation for a more efficient, transparent future.” Algebra Ventures Partner Laila Hassan said.

** We sat down with Gamal last year for our Founder of the Week column. Check out the interview here.

Tags:

automotive Startup watch startups

Also on our Radar

Egypt Kuwait Holding to sell entire 63.4% Delta Ins. stake. PLUS: SODIC, Madar Developments, Punalu, Erada Microfinance, DisrupTech Ventures

M&A WATCH-

Egypt Kuwait Holding (EKH) will sell its entire 63.4% stake in Delta Ins. in response to Attijariwafa Bank’s ins. arm Wafa Assurance’s mandatory tender offer (MTO) for a majority stake in the company, according to a statement. The buyer and the seller inked an agreement that would see EKH contribute all of its shares in response to the bid, which is still pending regulatory approvals in both Egypt and Morocco.

REFRESHER- The Morocco-based ins. player submitted the MTO to acquire up to 100% of Delta Ins. at EGP 40 per share last week, valuing the transaction at up to EGP 5 bn. The offer requires a minimum acceptance of 51% of shares to go through.

Wafa Assurance is looking to take Delta Ins. private, with plans to delist the company from the EGX following the acquisition and merge its life ins. arm with Delta Life.

REAL ESTATE-

#1- SODIC has started early handovers at its New Zayed development VYE, according to a state me nt (pdf). Over 1.7k homes are set to be delivered ahead of schedule this year — including 452 fully finished units. The project offers smart infrastructure, bike-friendly streets, co-working spaces, amenities, and walkable neighborhoods. Looking ahead, VYE’s Town Center will open in early 2026 and the Clubhouse in 2027.

#2- Local real estate developer Madar Developments launched its Kinz residential project in New Zayed with EGP 30 bn in investment, according to a statement (pdf) from the company. The 200-feddan development will include 1.5k residential units, with the first phase generating some EGP 6 bn in revenues and set to be delivered within the coming four years.

The details: Located near the Spinx International Airport, the project adopts a low-density plan, with only 12% of the land allocated for buildings. It offers one - to three-bedroom apartments, twin houses, townhouses, and single or multi-story standalone villas.

MANUFACTURING-

Punalufor Plastic and Wood Industries has invested USD 10 mn into the production of wood-plastic composite at its factory in the Suez Canal Economic Zone, general manager and co-founder Zaher Gamal told Enterprise AM on the sidelines of the Big 5 Construct Egypt forum. The company aims to scale up its production capacity to 90 tons per day by adding new product lines and around 20 production lines by the end of 2026, bringing total investments to USD 200 mn amid rising local and regional demand, Gamal told us.

The company is also preparing to expand its Lebanese and Saudi presence, and plans to expand its African footprint further through upcoming trade shows in Nairobi and Tanzania, Gamal added. "We’re targeting exports to make up around 55% of total output, with 45% going to the local market. We’re working to increase that export share further as we grow abroad," Gamal said.

FINANCE-

Erada Microfinance launched Islamic financial services after receiving its Islamic financing license from the Financial Regulatory Authority, according to a statement (pdf). Erada will provide Islamic financing services through two programs — Murabha and El Wekala.

STARTUP WATCH-

Local VC DisrupTech Ventures has made its first African investment outside of Egypt, with an undisclosed sum being committed in a pre-series A round by Nigerian agri-fintech startup Winich Farms, the fintech- and tech-focused VC said in a statement (pdf ).The Lagos-based startup connects over 180k smallholder farmers with buyers such as retailers and processors through its digital platform, bypassing costly intermediaries that erode farmers’ incomes.

Tags:

ALSO ON OUR RADAR Attijariwafa Bank Disruptech Ventures Egypt Kuwait Holding insurance Islamic finance microfinance real estate SODIC startups TELECOMS Vodafone Egypt

PLANET FINANCE

Family offices shift focus to private credit and infrastructure amid faltering PE returns -BlackRock

The world’s wealthiest families are piling into private credit — and fast, according to BlackRock’s latest global survey of family offices (pdf). Around 32% of the 175 surveyed say they plan to boost their allocations to the asset class this financial year, more than any other alternative investment.

Big names and numbers: Alternatives now account for 42% of family office portfolios, up from 39% in 2022-2023. In some cases, private credit alone makes up 15-30% of assets under management. UK b’naires David and Simon Reuben, and Paul Allen’s former family office have already jumped on the private credit bandwagon, Bloomberg reports. BlackRock is also putting real skin in the game, dropping USD 12.5 bn to acquire Global Infrastructure Partners and finalizing a USD 12 bn agreement to acquire private credit heavyweight HPS Investment Partners.

Infrastructure is part of the diversification drive: Over two thirds of family offices are moving to diversify their holdings, and 30% of respondents plan to increase allocations to infrastructure, drawn by the perceived resilience, stable cashflow, and inflation-linked income, tied to areas like decarbonization and AI-fueled data centers.

What’s driving the shift? Traditional 60/40 portfolios are faltering, and PE returns have disappointed. Family offices are gravitating toward asset classes that offer cashflow, downside protection, and attractive returns, rather than illiquid investments with long exit timelines. More than half of respondents are bullish on private credit’s prospects, lured by the promise of higher yields, improved liquidity compared to private equity, and protection from public market swings. Global uncertainty and trade tariffs are also making family offices take a second look at their investment portfolios.

There are still barriers to entry: Some 72% of family offices cited high fees as the biggest challenge of investing in private markets, up from 40% in the last report.

And a lack of transparency: More than half flagged gaps in their internal expertise, especially in private-market analytics, dealsourcing, and reporting. Some are turning to outsourced chief investment officers or deep partnerships to get access to talent, tech, and hard-to-reach agreements. While 45% of family offices are investing in AI-linked options, only a third are using AI internally to improve investment processes due to concerns ranging from poor interpretability and data security to a lack of in-house expertise.

Still holding PE, but warily: While PE remains a major holding for many, some 70% of family offices have an either neutral or bearish approach, citing lackluster exits and delayed capital returns. In response, investors are favoring secondaries, co-investments, and bespoke structures like funds-of-one, and becoming increasingly selective when choosing managers amid high fees.

MARKETS THIS MORNING-

Asian markets are somewhat mixed this morning, as investor sentiment took a hit once again after a rebound across equity markets earlier this week. Japan’s Nikkei, South Korea’s Kospi, and China’s CSI 300 are all up, but Hong Kong’s Hang Seng lost 0.9%

Wall Street futures also point to a less than cheery sentiment as investors await the US Federal Reserve’s interest rate decision today, and amid concerns that the US could join in on Israel’s attacks on Iran.

EGX30	30,726	-1.0% (YTD: +3.3%)
USD (CBE)	Buy 50.08	Sell 50.21
USD (CIB)	Buy 50.10	Sell 50.20
Interest rates (CBE)	24.00% deposit	25.00% lending
Tadawul	10,714	-1.4% (YTD: -11.0%)
ADX	9536	-0.5% (YTD: +1.3%)
DFM	5372	-0.6% (YTD: +4.1%)
S&P 500	5983	-0.8% (YTD: +1.7%)
FTSE 100	8834	-0.5% (YTD: +8.1%)
Euro Stoxx 50	5289	-1.0% (YTD: +8.0%)
Brent crude	USD 76.45	+4.4%
Natural gas (Nymex)	USD 3.86	+0.3%
Gold	USD 3414.00	+0.2%
BTC	USD 104,427.60	-3.8% (YTD: +11.5%)
S&P Egypt Sovereign Bond Index	878.70	+0.2% (YTD: +13.0%)
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THE CLOSING BELL-

The EGX30 fell 1.0% at yesterday’s close on turnover of EGP 3.4 bn (29.7% above the 90-day average). International investors were the sole net buyers. The index is up 3.3% YTD.

In the green: Emaar Misr (+1.6%) and CIB (+0.9%).

In the red: EFG Holding (-4.7%), Abu Dhabi Islamic Bank (-4.5%), and Orascom Development (-3.5%).

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BlackRock Family offices Financial Markets investment watch Planet Finance private credit

HARDHAT

Breaking down the government’s electricity targets and the roadmap to achieving them

Egypt’s electricity sector is shifting gears: With rising demand, cost pressures, supply chain bottlenecks — courtesy of regional tensions — and growing ambitions to become a regional energy hub, the Madbouly government is doubling down on its 2030 electricity strategy. The strategy document, seen by EnterpriseAM, focuses on ensuring universal access to electricity at competitive prices, sustainably and with minimal environmental impact.

Why it matters: After years of capacity expansion, Egypt is now prioritizing resilience, efficiency, and affordability. Recent FX volatility, rising import costs, and gas production challenges have made energy policy a core part of Egypt’s economic strategy — and key to attracting investment.

Part of a wider plan: The government's 2030 energy strategy is designed to support the country’s broader Vision 2030 goals of improving quality of life, spurring economic growth, and ensuring energy security.

The main goals: The strategy aims to see the country using diverse sources of electricity generation, achieving universal grid coverage, and localizing the production of electrical equipment to reduce import costs. The plan also ties into Egypt’s broader ambition to become a regional energy hub.

Modernizing Egypt’s power grid: The government plans to expand high- and ultra-high-voltage transformer stations and upgrade medium- and low-voltage distribution systems to absorb growing demand and ensure full grid coverage. The government is also continuing electricity sector restructuring efforts to boost service quality and promote efficient energy use. Ensuring affordable energy access for lower-income citizens and electrifying rural areas are also central to the strategy.

The private sector will play a bigger role: New public-private partnerships (PPP) mechanisms are being rolled out to attract investment — particularly in renewables — in line with global best practices. The goal is to boost the sector’s contribution to GDP, exports, and job creation. The government also wants to scale up nuclear energy’s percentage in the mix.

Thermal power continues to dominate the energy mix: Despite efforts to increase renewables’ share in the country’s energy mix, gas- and fuel oil-powered thermal plants remain the primary source of electricity in the country. By the end of 2024, thermal power accounted for 56.5% of the country’s energy mix, with hydroelectricity making up the second biggest share.

How did the sector fare over the past decade? Between the fiscal year 2013-2014 and FY 2023-24, installed capacity grew 93.7%, reaching 62 GW and renewable capacity rose to 7.7 GW, marking a 120% increase from a decade earlier. Looking at consumption, households accounted for 37% in FY 2023-24, followed by industry (27%), and commercial use (16%).

Investment and output targets are rising: The government wants to see the electricity and renewables sector increase its output to EGP 655.6 bn at current prices in FY 2025-26, rising gradually to EGP 984.5 bn by FY 2028-29 — at an annual growth rate of 15-20%. It plans to increase investments in the sector to EGP 136.3 bn in the next fiscal year — up from EGP 72 bn this year. Private investment will account for 27% of total investments in the sector, with the state contributing the rest. State-owned companies will receive around EGP 100 bn of the public component.

Powering up new communities and megaprojects: Universal electricity coverage is a top priority for the upcoming fiscal year. The government is pushing ahead with projects to ensure reliable service to urban centers, residential areas, and strategic national developments. The coming year will see work continue or begin on a wide slate of power supply projects across the country. This includes completing grid connections for agricultural development zones in a handful of areas, finalizing electrification of East Owainat and Toshka, providing power for key national transport projects, securing grid access for northwestern and southeastern coastal areas, and connecting water wells in North and South Sinai’s development zones to the national grid.

Improving power distribution: The government is ramping up efforts to improve the national transmission and distribution network. The aim is to expand capacity, enhance efficiency, and ensure better service delivery for residential and commercial users.

Infrastructure and capacity targets for FY 2025-26 include:

Relocating electricity infrastructure conflicting with road projects;
Expanding the 220 kV transformer stations in North Sinai;
Continuing the national program to replace overhead lines with underground cables;
Expanding transformer stations in Tenth of Ramadan and Zahraa Nasr City;
Completing construction of the new Mallawi transformer station and rehabilitating Matariya’s.

Targeted KPIs for the year include: Raising population coverage to 99.8%, increasing annual electricity generation to 235 TWh (from 229 TWh in FY 2024-25), adding 1.2 GW in new thermal generation capacity, cutting network losses to 16.5% from 19%, adding nine new 500 kV transformer stations, and increasing electricity exports to 3.9 GW.

Clean energy will shoulder more of the load: The state aims to raise renewables’ share in the energy mix to 20% in FY 2025-26 — up from 12% the year before — and eventually to 42% of the country’s total energy mix by 2030. To that end, the state is investing heavily in wind and solar, planning to add 4 GW of solar and wind capacity to the grid by this summer, and expanding the area allocated to renewables to 2.9k sq km and targeting 6.47 GW of new capacity.

As things stand on the renewables front: Some 80 solar stations with a capacity totalling 11 MW are already connected to the grid, and work is underway to connect 200 more stations, with a capacity totalling 34 MW.

Securing low-cost, clean energy for the long haul: The strategy aims to ensure reliable and affordable electricity through offering more incentives to private investors in electricity and renewables, localizing component manufacturing to reduce imports and foreign currency outflows, and maximizing the use of local hydro, solar, and renewable resources.

As part of its efforts to diversify its energy resources, Egypt is pressing ahead with the Dabaa nuclear project, with the first reactor’s core set to be received and installed this year. The country is also looking to expand hydropower generation and begin development of floating solar stations.

The long game — smarter energy use: The 2035 Integrated Sustainable Energy Strategy targets an 18% reduction in electricity consumption across all sectors through smart grid investments, nationwide rollouts of energy-efficient lighting systems, and incentives for households to switch to high-efficiency appliances.

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electricity Electricity Ministry energy Hardhat oil and gas

CALENDAR

JUNE

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

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.

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

NOVEMBER

16-19 November 2025: Cairo ICT 2025, Egypt International Exhibition Centre.

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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