What does the death of USAID mean for Egypt?

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What We're Tracking Today

IMF Board to sign off on Egypt’s fourth review within weeks

Good morning, friends. We are kicking off the week with a brisk issue, diving into what USAID’s pullback from Egypt means for its employees and programs, what went down during the VC Summit, and Maersk’s take on when Red Sea traffic may pick up.

Mr. Beast takes over the pyramids: The highly-anticipated video of mega YouTuber Mr. Beast spending 100 hours exploring the Giza Pyramids in now live (watch, runtime: 21:42). The video documents Mr. Beast (Jimmy) and his crew’s time setting up camp near the pyramids and spending 100 hours exploring the inside of the pyramids with a tour guide that helped guide them through it all.

A star-studded video: The video saw the gang being shown around the pyramids by Egyptian archaeologist and former Antiquities Minister Zahi Hawass and Ashraf Mohie Eldin, the director of the Giza Plateau.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 18°C and a low of 11°C, according to our favorite weather app.

It’s a tad colder in Alexandria, with a high of 17°C and a low of 10°C.

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WATCH THIS SPACE-

#1- The IMF’s Executive Board to sign off on our fourth review “in the coming weeks,” IMF Communications Director Julie Kozack said in a briefing to the press. The meeting will also see the board look into a set of fresh funds under the IMF’s Resilience and Sustainability Facility, which provides “affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.” The IMF executive board has yet to put Egypt on its public calendar.

Remember: The IMF reached a staff level agreement with Egyptian authorities on the fourth review of its USD 8 bn loan program in December. The agreement will grant Egypt access to USD 1.2 bn — the biggest tranche of the program so far — after the Executive Board gives its stamp of approval.

It’s still unclear how large the additional tranche of funds could be, with Kozack saying that she couldn’t confirm the exact size of the fresh set of funds at this stage when asked if the amount would reach up to USD 1 bn.

#2- Are the wheels finally turning on the Banque du Caire stake sale? Emirati and Kuwaiti financial institutions have begun due diligence to acquire at least 60% of Banque du Caire, sources with knowledge of the matter told Al Shorouk. The state is looking to exit the lender in 2Q 2025 — be it through a stake sale or a listing on the EGX if none of the offers it receives are worth pursuing. CI Capital has been appointed as the financial advisor for the sale. Last we heard, Emirates NBD is reportedly considering the acquisition of a controlling stake in BdC.

Remember: EnterpriseAM last month reported that Banque Misr has started preparing to appoint an advisor for the offering of its subsidiary. Plans to list Banque du Caire have been floated — and repeatedly delayed — since 2018, with adverse market conditions often singled out as the culprit.

#3- EGX, EBRD team up to boost market liquidity: The EGX and the European Bank for Reconstruction and Development (EBRD) are working together on a project to boost market liquidity in the EGX, according to a statement (pdf). The project will see both sides studying liquidity in the market and introducing new financial instruments and trading strategies. The project also aims to develop mechanisms such as a more active securities lending and borrowing system, easier access to lendable shares, and enhanced hedging tools.

IN THE HOUSE-

The House is back in session today after a two-week break: MPs will resume their discussion of 540-article Criminal Procedures Law today and vote on articles 277 to 338. They will also vote on two oil exploration agreements — one in the Western Desert involving EGPC, Eni’s IEOC Production, and Apex International, and the other in East Port Said with EGAS, IEOC, BP, and Qatar Energy.

The House will also review two foreign agreements — one allowing Egypt to increase its subscription to the African Development Bank and another with China to implement the third phase of the 10th of Ramadan railway project. Meanwhile, the Manpower Committee will hold six meetings throughout the week to finalize discussions on the re-drafted labor law before referring it to a plenary vote.

HAPPENING TODAY-

#1- Go Green to start trading on the EGX: Agriculture, construction, and mining machinery manufacturer Go Green for Agricultural Investment and Development will start trading on the EGX today, according to an invite sent to EnterpriseAM. Go Green got the green light from the EGX’s listing committee to list its shares, amending its temporary listing status granted in July.

#2- Nation council to review the private sector minimum wage: The National Wages Council will meet later today to discuss the minimum wage for the private sector, according to a Planning Ministry statement. The council last raised the minimum wage for private sector workers to EGP 6k a month, up from EGP 3.5k last May.

How big of an increase could private sector employees be looking at? “We expect the council to raise the minimum wage to around EGP 7k,” council member Alaa El Sakty told Kelma Akhira’s Lamees El Hadidi (watch, runtime: 4:51). “That way the employer would be bearing half of the current inflation figure,” he added.

Remember: A raise in the public sector minimum is already in the works, with an upcoming social protection package expected to raise the minimum wage by EGP 1.5k to EGP 7.5k.

CIRCLE YOUR CALENDAR-

South Sinai’s St. Catherine will launch the first phase of its Great Transfiguration project by the end of 2025, with 85% of it already complete, South Sinai Governor Khaled Mubarak told Asharq Business. Previous reports said trial operations will kick off in April or May.

Remember: The cabinet last March announced that Steigenberger inked an agreement with the New Urban Communities Authority to manage and operate an integrated tourist city in St. Catherine.

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

THE BIG STORY ABROAD-

It’s a relatively calm morning in the international press, with headlines focusing on Trump’s unexpected moves, the latest on Gaza’s ceasefire, and Lebanon’s new government.

Trump’s latest targets: The US president’s latest executive order cuts all financial aid to South Africa, citing domestic land policy allegedly targeting white South Africans, as well as Cape Town’s genocide accusations against Israel at the International Court of Justice. This comes after an earlier order Trump signed on Thursday imposed sanctions on the International Criminal Court for targeting the US and its allies. (NBC News | Reuters)

IN GAZA- Hamas released three Israelis on Saturday, while Israel released 183 Palestinians, the fifth exchange in the first phase of an increasingly fraught ceasefire agreement. Israeli forces are due to withdraw from the key Netzarim corridor today, allowing freedom of movement between the strip’s north and south. (Reuters | New York Times | The Guardian)

MEANWHILE- A new government in Beirut with a tough mandate: Lebanon appointed Amer Bisat, BlackRock’s head of emerging-markets fixed income, as its economy minister. Bisat — along with new finance minister and lawmaker Yassine Jaber — will be tasked with laying down a recovery plan for Lebanon’s deeply-troubled economy, hoping to unlock much needed funding from the IMF. (Bloomberg | ABC News)

Somabay proudly hosts the World Aquatics Open Water World Cup for the third consecutive year, reinforcing its status as a top watersports destination. The training camp will run from 18-22 February at Somabay’s state-of-the-art OneFlow Aquatics Centre, preparing athletes from 21 countries for the competition. From 21-22 February, they will compete in three races, further cementing Somabay’s appeal for international swimming events.

USAID’s pullback from Egypt puts employees and programs at risk

The fate of USAID employees in Egypt: The US Agency for International Development (USAID) has placed its foreign employees in Egypt on indefinite leave as it remains unclear whether the agency will fully resume operations, a well-informed source told EnterpriseAM. Some have already departed Egypt and went back to their hometowns, while others are finishing up the required paperwork to fly back home.

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

DATA POINT- The Egyptian arm of USAID used to employ some 1.2k Egyptians and foreigners, all of whom are yet to receive their January salaries.

ICYMI- US President Donald Trump signed off on a 90-day funding pause to all foreign aid from the world’s largest foreign aid donor. Newly-appointed State Secretary Marco Rubio will now vet all US foreign aid against the new administration’s foreign policy before turning back on to the tap.

It’s not just Egypt: The agency’s website had gone down last week, with some of its top officials put on leave as doubt swirls about USAID — and its funding’s — future. The number of USAID employees was slashed from over 10k to less than 300, sources told Reuters on Thursday.

As things stand: Over the weekend a federal judge blocked Trump’s plan to place 2.2k USAID workers on paid leave — the block will remain in place until next Friday.

Also affected were the 1.1k Egyptian students on USAID-backed scholarships — the Higher Education Ministry has since stepped in to make sure those students are able to continue the semester.

How big of a role did USAID play in Egypt? The agency had nine main programs active in Egypt — they covered macroeconomics, health, education, environment, agriculture, food, social protection, and female empowerment. The USAID shutting its doors will mean that these programs will lose a lot more than just funding, they will miss out on the technical support granted by the agency — it often had experts flying in to support the programs and some local helping hands flying out to receive training abroad.

A lifeline? While the Madbouly government may decide to step in in the form of technical support to keep the programs going.

Some of the ministries will also be hit by the decision: Some ministries used to receive technical support from the USAID, the source added.

In the leadup to the 90-day halt, USAID offices all over the world received directives to stop funding any gender or women empowerment programs, the source said, explaining that what was once atop the US administration’s list (gender equality) has fallen off its list.

The agriculture sector’s future remains unclear: The future of the USAID’s USD 1.4 bn in support for the local agriculture sector remains uncertain, the source said, while another added that the health sector has also been hit, with all USAID-funded public health projects, including those backed by the World Health Organization, have been shut down.

Also in limbo: The second version of the USAID-funded Macro-Economic Stabilization and Reform initiative, which had been pending approval for three months, has also halted.

BEYOND EGYPT- The death of USAID will likely result in the spread of disease and delays in the development of vaccines and new treatments, health experts told the BBC.

Egypt’s Finance Ministry to issue bookkeeping scheme to account for FX price difference prior to the EGP float

FinMin looks to cushion the blow of the FX crunch on firms’ pre-float earnings: The Finance Ministry is considering issuing a bookkeeping scheme to account for the FX rate difference between the official and parallel markets for profit earned before the Central Bank of Egypt liberalized the exchange rate in March 2024, with the ministry currently preparing tax budgets for the upcoming corporate tax filing season — which ends on 30 April, a government source told EnterpriseAM.

What the decision would entail: The accounting scheme will augment FX costs booked by companies throughout 1Q 2024 by a rate of up to 60%, which was set based on currency averages and forward contracts from that period, our source said. They added that the decision could also help prevent the accumulation of new tax-related issues and reduce the gap in tax assessment differences for firms in the market.

Refresher: The Finance Ministry last year issued a decision to change the way businesses calculate their foreign exchange costs to determine their tax base, seeking to account for the price differences between the FX rates on the official and parallel markets throughout 2023, with a specific emphasis on firms whose operations necessitated the use of foreign currency — particularly importers and exporters.

The accounting scheme at the time augmented FX costs booked by companies throughout 2023 by varying percentages based on FX price points over the year, starting at 9% for the period from January to April 2023, increasing to 24% from May to August, rising further to 34% in September and October, and reaching its highest level in November and December at 60%.

The decision would require coordinated tax and monetary policies to ensure that taxpayers don’t have to obtain statements from the CBE regarding shipments for which FX was secured, Federation of Egyptian Industries’ tax committee head Mohamed El Bahy told EnterpriseAM. Some taxpayers still face issues regarding their tax filings from 2023 due to this requirement, with some banks refusing to provide businesses with the statements needed to allow them to benefit from the Finance Ministry’s decision, El Bahy said.

Remember: The Finance Ministry unveiled in October the first phase of a package of tax facilities aimed at simplifying the tax system and easing the burden on taxpayers. The package introduces 20 key reforms all revolving around four primary goals — easing tax and financial burden on taxpayers, unifying and improving tax services, and clearing the backlog of tax disputes.

Maersk doesn’t see Red Sea traffic picking up before mid-2025

Shipping line goliath Maersk doesn’t see Suez Canal traffic picking up before the middle of the year, it said in a statement accompanying its financials for 2024. The world’s second-largest shipping line sees the canal welcoming back vessels in a major way by the end of the year.

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

But there’s only so much you can predict in an unpredictable world — especially in the Middle East during a Trump presidency with the White House diverting from its alleged position in support of a two-state solution for ethnic cleansing and American colonial occupation of Gaza. Although the statement did not go into any specifics beyond a brief mention of the “situation in the Red Sea,” it pointed to “considerable macroeconomic uncertainties” that could affect its outlook for 2025.

CEO Vincent Clerc reiterated the shipping giant’s position in comments to reporters. “I don't think we are close to making a change and going back into the Red Sea because there is so much uncertainty about the situation in the Middle East."

The hoped for post-ceasefire resumption of traffic through the canal has yet to materialize, but there is reason to be positive, with a trickle of US- and UK-linked ships passing through the Red Sea safely after Yemen’s Houthis announced they would only target Israeli-linked vessels following the ceasefire agreement between Israel and Hamas. However, the small number of ships is just a drop in the bucket compared to the traffic levels the canal was used to, with shipping giants such as Maersk, MSC, and Mitsui OSK still avoiding the Red Sea as they cite security risks.

What went down during the VC Summit

Officials and int’l orgs align on policy fixes to unlock more private investment: VCs, startups, investors, and high-ranking officials gathered at the two-day VC Summit in Cairo last week attended by EnterpriseAM to discuss how to unlock more funding for startups and make Egypt a more competitive hub for investment. International institutions like the World Bank and GIZ stressed the need for sustained policy reforms to attract private investment and stabilize Egypt’s business environment, while policymakers pledged clearer regulations, streamlined fund structures, and expanded digital infrastructure.

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

MSMEDA and EPEA sign MoU to strengthen VC funding: The first day of the summit saw the Egyptian Private Equity Association (EPEA) and the Micro, Small, and Medium Enterprise Development Agency (MSMEDA) sign an MoU to expand funding for Egyptian startups and position the country as a regional venture capital hub. The agreement aims to streamline financing, attract global investors, and strengthen cross-border expansion between Africa and the GCC. “Our goal is to make Egypt a leading hub for venture capital in the MENA region,” MSMEDA CEO Bassel Rahmy said during the announcement, framing the move as key to boosting competition, innovation, and long-term economic resilience.

The MoU hopes to close a startup funding gap: The newly signed MoU aims to address the funding gap in Egypt’s startup ecosystem, EPEA Chairman Ayman Soliman told EnterpriseAM at the sidelines of the VC Summit. “The biggest challenge for this ecosystem has always been access to finance,” he said.

Pairing MSMEDA’s reach with EPEA’s investment expertise: Soliman highlighted the potential of combining MSMEDA’s extensive SME network — critical in a market where 80% of businesses are small and medium enterprises — with EPEA’s expertise in identifying high-potential ventures. “The scalability of their reach combined with the financing that they have access to and EPEA’s acumen in making sure we promote the right businesses, the right connections, the right access … will create a more effective reach and enablement” for Egypt’s VC landscape, he told us.

Remember: The Madbouly government is looking to introduce a unified financing initiative for startups, coordinating efforts between public and private entities to support some 5k startups.

WHAT INVESTORS AND FOUNDERS WERE SAYING OFF-STAGE-

Flat6Labs set to reach the first close of its USD 85 mn Africa Seed Fund by June, Chief Investment Officer Dina El Shenoufy told us on the sidelines of the event. “We’re planning to reach the first close of the fund before the first half, sort of by the end of June this year,” she said. The number of startups the firm will back in 2025 depends on the timing and size of the first close. “We already have a pipeline of very attractive investments,” El Shenoufy said. “Assuming the fund closes sometime within the first half of this year, we're hoping we can make at least somewhere between 10 to 20 investments within 2025.”

Healthtech, fintech, and logistics are on Flat6Labs’ radar: The fund will prioritize sectors with high impact and scalability potential across the continent, including healthtech, edtech, financial inclusion, climate, and logistics. “We genuinely believe these are the sectors that require the most disruption,” El Shenoufy said. Agritech is also emerging as a key area of interest, according to El Shenoufy, echoing Sawari Ventures’ investment appetite for the sector.

Logistics investments are benefiting from Africa’s infrastructure push: El Shenoufy sees Africa’s expanding infrastructure as a launchpad for new logistics opportunities. “There’s been a lot of initiatives happening on the continent in terms of roadworks and connectivity,” she said, adding that Flat6Labs is looking to tap into these developments. The firm has already backed logistics players like AI-powered Roboost and Illa, which provides trucking and mid-mile delivery services.

Regional expansion was a common theme: Cairo-based venture capital firm Sawari Ventures is expanding into Sub-Saharan Africa and increasing its focus on agritech and healthtech, a company representative told EnterpriseAM. “It is an opportune time to add agritech because, for one of the first times, agriculture can actually be helped by technology,” the representative said. “Tech has advanced to the point where it can make a major impact in agri rather than just data sharing information.”

Agritech is moving beyond simple market updates: Sawari sees rapid advancements in agritech, with new solutions moving beyond simple market price updates for farmers to more sophisticated tools like drones and soil sensors. “Before, what they called agritech was farmers receiving an SMS about the price of tomatoes today … Now, companies are putting sensors on machines to measure crops, and eventually, they’ll be able to optimize soil mid-season," the representative said.

DisrupTech Ventures backs startups integrating AI into existing operations: Local fintech- and tech-focused VC DisrupTech Ventures is prioritizing startups that integrate AI into their operations rather than positioning themselves solely as AI companies, Senior Analyst Fouad Rakha told us. “We’re focused on startups that leverage AI to enhance what they already do,” he said, adding that many of the firm’s portfolio companies are using AI extensively to optimize costs and improve efficiency. “Some of them have cut costs by almost 50% just through AI-driven efficiencies,” he noted.

Egypt is well positioned to house export-orientated startups: DisrupTech is backing startups that localize production while expanding regionally, a strategy Rakha sees as well-suited to Egypt’s economic climate. “We’re looking at companies with local operations that can sell into the region,” he said, citing Egypt’s cost-effective tech talent. The firm is also focused on embedded finance and startups running cost centers in Egypt while serving international markets. “This is the sweet spot for us,” he added.

DisrupTech is actively scouting fintech transactions: DisruptTech has a few fintech transactions up its sleeve and is actively evaluating new investment opportunities, Rakha told us when asked about reports that the VC planned to invest around USD 16 mn in fintech startups. While he did not disclose specifics, he confirmed that the firm is conducting follow-ups with high-performing portfolio companies and continues to see strong dealflow. “There’s no shortage of pipeline — we have a lot of things that we’re working on,” he said.

GIZ sees Egypt’s startup ecosystem as a key economic driver: Egypt’s startup ecosystem has the potential to drive economic growth and job creation, GIZ Egypt Private Sector Development head Andreas Ruepp, told EnterpriseAM. “I trust that the startup ecosystem in Egypt will generate amazing ideas that will transform certain industries and eventually lead to economic growth and the creation of lots of jobs,” he said. While he didn’t make specific forecasts, he pointed to the VC Summit as proof of investor confidence. “You see that the ecosystem is working and that investors are eager to invest. And that’s a very good signal,” he added.

Egypt ramps up diplomatic efforts to counter Palestinian displacement plan

It was a diplomacy-heavy night on the airwaves, with the nation’s talking heads laser-focused on Egypt’s rejection of new remarks of displacing Gazans.

The Foreign Ministry issued a statement on Thursday warning of the “catastrophic consequences” of Israeli officials’ remarks about displacing Palestinians. The statement described the comments as a “blatant and flagrant violation of international law” and stressed that such actions “undermine the negotiations regarding the ceasefire agreement … and provokes the return of hostilities and pose risks to the entire region.” Egypt also reiterated its “complete rejection of any proposal or concept aimed at eliminating the Palestinian cause through uprooting or displacing the Palestinian people.”

Egypt is ramping up diplomatic efforts to prevent Palestinian displacement: “Egypt will never accept the displacement of Palestinians from their land,” Prime Minister Moustafa Madbouly said during his meeting with Palestinian Prime Minister Mohamed Mustafa on Thursday. Meanwhile, President Abdel Fattah El Sisi held a phone call with UN Secretary-General António Guterres on Friday to discuss Egypt’s efforts to secure a ceasefire and facilitate the delivery of humanitarian aid to Gaza. The two sides also “confirmed the need for the international community to join forces to ensure that the Palestinians remain in their land … and affirmed the necessity of expediting the reconstruction of the Gaza Strip to restore normal life in it.”

“Every moment, we wake up to new statements that cause panic, leaving us unsure which one to respond to. The goal of this chaos is to make us all anxious while, at the same time, reinforcing the idea of displacement and shifting the minimum expectations — from discussing the establishment borders for a Palestinian state to making forced displacement seem like an option,” Kelma Akhira’s Lamees El Hadidi said (watch, runtime: 10:43). She warned, however, against dismissing these threats completely, “On the contrary, we must take all these proposals — whether absurd or not — seriously, confront them, and present alternatives,” she said.

She compared this situation to a business negotiation tactic used by US President Donald Trump — starting with extreme demands to push the other side into concessions. El Hadidi argued that despite the provocative statements, little has materialized on the ground.

“We are advocates of peace, but if war is imposed on us, we are ready for it,” El Hadidi stated (watch, runtime: 1:51), adding that the current period marks the highest level of Arab coordination on the Palestinian issue, particularly among Egypt, Jordan, and Saudi Arabia. “There is widespread Arab, international, and even American rejection of Trump’s reckless idea of displacing Palestinians from Gaza and seizing it,” she noted (watch, runtime: 2:13), highlighting that US policy has retreated under these pressures.

Abdelatty to touch down in DC? Foreign Minister Badr Abdelatty is heading to Washington shortly, El Hadidi said (watch, runtime: 1:28), adding that he could possibly be setting the stage for a visit from El Sisi.

And rejection of the Israeli suggestion to establish a Palestinian state on Saudi land. “Saudi sovereignty is a red line,” the statement said. This came following Israeli Prime Minister Benjamin Netanyahu telling an interviewer ”unless you want the Palestinian state to be in Saudi Arabia, they have a lot of territory.”’

AND- Egypt is set to host an emergency Arab summit on 27 February, with leaders from across the region expected to attend. The summit, called by El Sisi, will focus on reaffirming Arab support for Palestine, Ala Masouleety’s Ahmed Moussa said (watch, runtime: 4:57). The event is expected to bring together the leaders from Jordan, Qatar, the UAE, Tunisia, and Sudan, among others.

ALSO- TMG’s proposal to rebuild Gaza: Talaat Moustafa Group CEO Hisham Talaat Moustafa proposed a USD 27 bn plan to rebuild Gaza rather than displacing its residents. The proposal includes 200k housing units covering 20 mn sqm at a USD 20 bn price tag. The project could be executed in six phases over three years by 40 to 50 construction companies. Additionally, the plan includes infrastructure development and the establishment of healthcare, education, sports, commercial, and recreational services with a USD 7 bn investment (watch, runtime: 1:08:39).

Cheiron Energy secures USD 75 mn syndicated loan

DEBT

#1- Banking syndicate arranges USD 75 mn in financing for Cheiron Energy: A Banque du Caire-led banking syndicate that includes Al Baraka Bank Egypt, the Arab International Bank, and SAIB Bank has arranged a USD 75 mn loan for Cheiron Energy, according to a statement (pdf). The financing will support 45.5% of the investment costs for the development of its West El Burullus gas field in the Mediterranean.

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

#2- EBRD disburses USD 22.6 mn to fund Hassan Allam Construction’s capital increase: The European Bank for Reconstruction and Development (EBRD) approved a USD 22.6 mn four-year loan to fund a capital increase for Hassan Allam Holding subsidiary Hassan Allam Construction to help it deliver on its backlog of projects by providing working capital.

ENERGY-

BP’s recent discovery at its King Mariout offshore concession could hold up to 4 tn cubic feet of natural gas, according to early estimates cited by two unnamed government officials that spoke to Asharq Business. A second well in the concession due to be completed in the second quarter of the year will provide a more accurate figure, one of the sources said. Prime Minister Moustafa Madbouly said that the discovery could be the first of several finds in the area when he first announced the find during last week’s presser.

If estimates are correct, this would be a substantial find, but still a long way away from Eni’s supergiant Zohr field that the Italian energy player still estimates to hold 30 tn cubic feet.

Negotiations are already underway to try to kick off production in 3Q 2025, with the Egyptian Natural Gas Holding Company (EGAS) in talks with the multinational energy giant to sort out the required facilities to start production, one official told the regional outlet.

MANUFACTURING-

#1- Orascom Industrial Parks is setting up a 3.5 mn sqm industrial zone in Ain Sokhna with projected investments of EGP 7 bn over the next ten years, CEO Amr El Batrik told Asharq Business. The new zone will focus on green industries, including green hydrogen production and related components, and other export-oriented industries.

#2- The Industry Ministry has allocated 30 mn sqm in Ras El Hekma for an industrial zone, Industry Ministry Kamel El Wazir said, adding that the ministry is working on setting up three other zones across the country — in Borg El Arab, New Alamein, and Matrouh.

AND- The government has broken ground on the Ras El Hekma airport, which will support tourism, industry, and real estate in the area. The government began choosing sites for the airport last year.

BANKING-

CIB cuts rates on its high-yield CDs: CIB has cut interest rates on its local currency, high-yield CDs by 3 percentage points, according to its webs ite. CIB has lowered interest rates on its premium, plus, and prime three-year fixed-rate CDs by 3 percentage points to 17%, 16%, and 15%, respectively. The lender last cut rates on its CDs last October.

INVESTMENT-

Cleopatra to enter the oil sector in 2025: Cleopatra Group plans to invest EGP 12 bn this year to expand into the energy sector as well as strengthen its ceramics, porcelain, and tourism projects, chairman Mohamed Abou El Enein told Asharq Business. The group also plans to inaugurate a tile factory with an EGP 6 bn investment and launch four new hotels with a total of 2k rooms this year.

PHARMA-

#1- Servier Egypt launches new EUR 1.4 mn production line: French pharma giant Servier’s Egypt arm has inaugurated a new packaging and filling line at its 6th of October facility, the company announced at a press conference attended by EnterpriseAM. With this expansion, Servier’s total investments in Egypt reaches EGP 1.6 bn, said World Operations Executive Vice President Stephane Mascarau.

The details: The company aims to double its production capacity in Egypt to 50 mn units annually by 2030, up from a current 25 mn units. The company also plans to double its sales to around EUR 80 mn by 2030, said General Manager Sami Sinnuqrut.

#2- PharmaOverseas distributors gain access to digital payments: Alexandria-based PharmaOverseas partnered with Fawry to provide its network of pharmacies and suppliers with access to digital payment solutions, according to a statement (pdf). “[Fawry’s] services will add value to our operations and customers, helping us achieve our vision of adopting innovative technologies,” PharmaOverseas Chairman Mohab Gazzarine said.

STARTUPS-

Keheilan launched Middle East-focused USD 100 mn secondary investment fund: The Netherlands’ Keheilan Asset Management has launched a USD 100 mn secondary investment fund focused on startups in Egypt and the Middle East, Group CEO Ahmed Abdelhamid told Asharq Business. The fund, targeting growth-stage startups with valuations over USD 100 mn, will allocate 20% to the Egyptian market, with the entire fund expected to be deployed within two years.

MSMES-

FRA raises maximum credit limit for micro enterprises: The Financial Regulatory Authority (FRA) has raised the borrowing limit for micro enterprises by 10% to EGP 266k. The FRA last increased the maximum credit limit for micro enterprises in 2024, raising it to EGP 242k.

AI-

Compass Capital completes AI-focused program with MIT: Private equity firm Compass Capital wrapped up its four-month program with MIT’s Sloan School of Management to enhance its AI-driven optimizations in workflows, data analysis, and decision-making processes, according to a statement (pdf). The program concluded with a two-week on-site visit to the Compass offices, where the MIT team presented actionable AI integration recommendations in data organization, data analysis and decision-making, routine tasks automation, risk management, investment research, and process efficiency optimization.

M&A activity reached a modest USD 3.5 tn in 2024

Following three years of subdued M&A activity, this year could be the year the market finally gains momentum, Bain said in its latest global M&A report (pdf). The firm expects that the main barriers to M&A activity in recent years — high interest rates and regulatory challenges — will start to ease in the coming year, the report notes.

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

New tech + national regulations to drive activity: M&A activity is going to pick up because of tech disruption and changes in global economics, the report notes, adding that companies will be looking toward consolidation in order to keep up with new technologies like AI, automation, and renewable energy, with both tech and non-tech companies looking to stay ahead. Businesses are also using M&A to adjust to new national policies and trade dynamics.

2024 IN REVIEW-

Overall M&A activity reached a modest USD 3.5 tn in 2024, up only slightly from last year’s USD 3.2 tn. A slight drop in interest rates fueled private equity interest, leading to a 29% y-o-y increase in transaction value. Meanwhile, corporate M&A experienced steady growth, rising 12% from 2023, with transaction volume also up by 7%. Despite challenges like high interest rates, companies have continued pursuing mergers and acquisitions, the management consulting firm said, noting a shift toward creating value through revenue and cost synergies.

By the sector: Consumer products saw a 19% drop in transaction value in 2024, with 60% of executives planning to sell assets in the next three years. The energy sector reached a three-year high of USD 400 bn in transactions driven by oil and gas consolidation and faster synergy realization. Retail rebounded in M&A value and volume, and 75% of executives anticipate sustained momentum in 2025.

Top M&A markets: The US and Canada led global M&A activity with a market value of USD 1.2 tn, followed by Greater China at USD 291 bn, and Japan at USD 143 bn.

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THE CLOSING BELL-

The EGX30 rose 0.9% at Thursday’s close on turnover of EGP 3.1 bn (17.4% below the 90-day average). Regional investors were the sole net sellers. The index is up 0.9% YTD.

In the green: Eastern Company (+6.6%), Sidpec (+3.6%) and Telecom Egypt (+2.4%).

In the red: Rameda Pharma (-2.2%), Beltone Holding (-2.0%) and Qalaa Holdings (-1.5%).

CALENDAR

FEBRUARY

6-9 February (Thursday-Sunday): Egypt International Boat Show, Nasr City, Ard El Maared.

10 February (Monday): The Economic Forum for Industry and Investment.

13-17 February (Thursday-Monday): The 10th Annual Conference of the Businesswomen of Egypt 21 Association, the Arab League HQ, Cairo.

17 February: (Monday): Cypriot President Nikos Christodoulides will visit Egypt to sign agreements to transport Cypriot gas to Egypt to be liquefied and exported.

17-19 February (Monday-Wednesday): EGYPES Technical Conference, Egypt International Exhibition Center, Cairo, Egypt.

18-19 February (Saturday-Sunday): German-Egyptian Joint Economic Committee meetings, Cairo, Egypt

20 February (Thursday): Monetary Policy Committee's first meeting.

21-23 February ( Friday-Sunday): The First Arab Fraud Combating Summit.

BP to bring the second well of its Raven natural gas project online, with additional production capacity expected.

Orascom Pyramids Entertainment to bring total investments in the Pyramids Plateau to EGP 1.5 bn.

Subscription period for Your Home in Egypt initiative opens.

MARCH

Arla Foods’ deadline for Domty acquisition offer

Operation of phase one of the Amotope wind farm

Alwaad Investment to inaugurate a new cold beverage plant with an annual production capacity of 14.5 mn units.

Al Ahly Sabbour to finalize preparations for its EGX listing, offering 20-25% of its shares, with an advisor to be tapped in early 2025.

March-April 2025: The government plans to start collecting taxes on capital gains from EGX transactions.

APRIL

The Suez Canal Container Terminal will begin trial operations for its expanded East Port Said facilities.

Government begins talks with EU on the second tranche of the of the EUR 5 bn concessional loans package

Saxony Delegation visit to Egypt.

Egypt to launch trial operations of the first phase of its USD 1.8 bn Egypt-Saudi electricity interconnection project, ahead of schedule

Tahya Misr 1 container terminal to begin operations, adding 3.5 mn container capacity to the port.

7-9 April (Monday-Wednesday): Narrative PR Summit launches 9th edition, Red Sea

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

17 April (Thursday): Monetary Policy Committee’s second meeting.

28-30 April (Monday-Wednesday): FDC Regional Digital Industry Summit will launch cybersecurity index.

MAY

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

22 May (Thursday): Monetary Policy Committee’s third meeting.

Egyptian Exporters Association (Expolink) exhibition, Italy

French rolling stock manufacturer Alstom will submit technical and financial bids for Cairo Metro Line 6

JUNE

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

June 2025: Nissan and Honda finalise talks about possible merger to create the world’s third largest automobile company by sales.

June 2025: Coficab to complete its USD 88 mn automotive cable and electrical factory in Tenth of Ramadan City

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.

July 2025: Etihad Airways to launch twice-weekly flights to Alamein

July 2025: Israel to begin increasing gas exports to Egypt from Chevron’s offshore Tamar field

AUGUST

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

August 2025: Tourism Development Authority to waive late payment penalties for land purchases if full installments are paid

SEPTEMBER

September 2025: Egypt Education Platform (EEP) to launch two new schools in Alexandria and Somabay

September 2025: 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.

DECEMBER

25 December 2025 (Thursday): Monetary Policy Committee’s eighth meeting.

December 2025: Taqa Arabia and Voltalia to complete studies for repowering the 545-MW Zafarana wind farm with 1.1 GW of wind and 2.1 GW of solar power

EVENTS WITH NO SET DATE

Early 2025: ADQ to break ground on the development of Ras El Hekma

Early 2025: Al Ismaelia to begin working on two new hotels and hotel apartments in Downtown Cairo.

Early 2025: The Communications Ministry will unveil the second edition of its national AI strategy in early 2025

Early 2025: The Suez Canal Authority to launch an IPO for the Canal Company for Mooring and Lights (CCML) on the EGX.

Early 2025: Orange Egypt to launch 5G services, with EGP 10 bn planned for network upgrades.

Early 2025: BP to begin drilling at the King Mariout Offshore concession.

Early 2025: Jinbei Royal Egypt to begin local assembly of 3k Jinbei vehicles, including the country’s first electric cargo van and microbus

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

1Q 2025: Egypt to sign trade agreements with Bahrain and UAE to slash customs clearance times

1Q 2025: Government to launch EUR 271 mn green industry program to cut emissions

1Q 2025: Egypt-Azerbaijan joint committee to meet to bolster trade and investment ties

1Q 2025: Turkish Automotive Manufacturers Association and Turkish Contractors Association to visit Egypt following an invitation from the Investment Minister

1Q 2025: One of four companies, including Abu Qir Fertilizers, Mopco, Egyptian Petrochemicals Holding Company, and a Saudi-affiliated firm, to be selected for the USD 450 mn redevelopment of Delta Fertilizers

1Q 2025: GV Auto to begin local production of FAW Group’s cheapest EV model.

1Q 2025: Alkan Auto to launch BAIC subsidiary Arcfox’s EVs to the market.

1Q 2025: Dynamic Distribution to launch a new competitively-priced Fiat model in Egypt.

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta.

1Q 2025: Port Said for Engineering Works to begin construction on a USD 80 mn aluminum foil factory in the SCZone, targeting initial production of 60k tons annually.

1Q 2025: Pearl Polyurethane Systems to start production at its EGP 100 mn polyurethane factory in the Sokhna Industrial Zone.

1Q 2025: Sumitomo Electric to officially open its EUR 22 mn cable factory in Tenth of Ramadan, with production set to begin next month.

1Q 2025: Construction of the USD 600 mn natural gas treatment plant in the Western Desert’s Meleiha concession to wrap up, followed by a pilot run.

1Q 2025: El Araby Group and Sharp to break ground on a USD 50 mn fridge and freezer manufacturing plant in the Quweisna zone.

1Q 2025: Hangzhou Henneway Travel Goods to begin production at its USD 50 mn factory in the West Qantara Industrial Zone

1Q 2025: BP to drill two USD 160 mn exploratory gas wells in the West Delta

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

2Q 2025: Hassan Allam to build infrastructure for AD Ports' Noatum terminal at Safaga

2Q 2025: EgyptSat Auto to start production at its EV factory in Tenth of Ramadan City

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.

1H 2025: Internal Trade Development Authority (ITDA) to establishfour logistics zones with EGP 18-20 bn investments

1H 2025: Natco to launch Chinese firm Neta Auto’s EV models.

1H 2025: OCI Global to complete the sale of its entire methanol business to Methanex for USD 2.05 bn.

1H 2025: Egypt and the UAE to begin construction of a USD 3 bn petroleum logistics zone at Al Hamra Port

1H 2025: HoldiPharma to list 25-30% stakes in Misr Pharma and Chemical Industries Development (CID) on the EGX

1H 2025: Korra Energi to list up to 20% stake on the EGX

1H 2025: Smart Villages Development and Management Company plans to list 30-35% of its shares on the EGX

1H 2025: Halliburton to bring three gas wells online as part of the Burullus project.

1H 2025: Chevron to begin gas production from the offshore Nargis gas field, initially producing 600 mn cf.

1H 2025: Nile Recycling to launch USD 20 mn PET recycling facility in Ain Sokhna, targeting an annual capacity of 22k tons and reducing carbon emissions by 40k tons

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

3Q 2025: AMEA Power to bring 500 MW Amunet wind farm online in Ras Ghareb

4Q 2025: Abou Ghaly Motors to introduce the Subaru Solterra to the market

4Q 2025: Two new projects in food manufacturing and home textiles to begin operations in the Qantara West Industrial Zone

2H 2025: National Printing Company to make its EGX debut after delayed IPO plans

2H 2025: Tabarak Holding to list 30% of its shares on the EGX

2H 2025: Turkish apparel company Denim Rise to open a garment manufacturing facility

2H 2024: Hi-Tech Apparel to break ground on a USD 20 mn sportswear factory in the SCZone

2H 2025: Eni to drill two new wells in the Zohr field with USD 160 mn in investments

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

Mid-2025: SN Automotive to launch three locally assembled models — one electric and two gasoline-powered — in Egypt

Mid-2025: Suez’s USD 1.8 bn coal and diesel production complex, developed by Enppi and Petrojet, to be completed

Mid-2025: Wataneya and Safi to debut on the EGX

End of 2025: The Egypt Digital Industrial Platform will expand to include additional services for manufacturers, including the issuance of licenses, building permits, and industrial records

End of 2025: An unnamed Chinese company and the state-owned Arab Organization for Industrialization (AOI) to begin production at a USD 360 mn tire factory in the SCZone.

End of 2025: A consortium including Redcon Properties and Al Baraka Bank to launch a local real estate investment fund with over EGP 1 bn in initial investments

Late 2025: Baron Hotels to open a new hotel in Sharm El Sheikh and debut its first international property in Zanzibar with 150 luxury suites

2025: The InterAcademy Partnership assembly

2025: Nile Basin States Summit, Cairo, Egypt

2025: Release of the government’s Startup Charter document

2025: Nafeza to integrate air cargo into its digital customs platform, further streamlining trade logistics

2025: Africa50 completes 42.9% stake acquisition in Raya Data Centers for USD 15 mn to fund construction of a USD 35 mn Tier III data center.

2025: MM Group for Industry and International Trade is set to launch 16 new Tata vehicle models locally.

2025: China to issue USD 411 bn in special treasury bonds

2025: El Attal Holding to list 30-35% of its shares on the EGX

2025: The Administrative Capital for Urban Development (ACUD) to launch its EGX debut, offering 5-10% of its shares.**

2025: Basata Holding for Financial Investments to offer 25% stake on the EGX as part of a plan to double its capital to EGP 1.4 bn.**

2025: Hilton Cairo Nile Maadi to open early in the year, alongside debuts of Tapestry Collection and Curio Collection by Hilton.

2025: Palm Hills and Marriott to launch The Ritz-Carlton Residences in West Cairo, featuring 150 branded units across 45 acres

2025: Jaz Hotel Group to set up two new hotels in North Coast, two in Hurghada, and two in Marsa Alam

2025: Sunrise Resorts & Cruises to add 4k hotel rooms to its hotels capacity.

2025: Egyptian Petrochemicals Holding Company (ECHEM) to complete studies and kick off production of Egypt’s first sustainable aviation fuels (SAFs).

2025: Polaris Parks to begin development of the industrial park in New October City

2025: EgyptAlum to launch a USD 100 mn foil production line with a 50k-ton annual capacity

2025: Honor to begin operations at its proposed smartphone manufacturing facility in Egypt, with an initial investment of USD 10 mn

2025: Indorama and Phosphate Misr to begin implementation of the USD 400-500 mn phosphate fertilizers plant in Ain Sokhna

FY 2025-26: Egypt to issue its first EGP-denominated sovereign sukuk to finance public investments outside the general budget

FY 2025-26: The government to begin introducing cash-based subsidies on a trial basis in select areas of the country

2025-2027: EUR 4 bn in concessional loans to follow as part of a EUR 7.4 bn package

2026

Baron Hotels to launch two hotels in Egypt with 950 rooms, followed by another with 750 rooms.

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

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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