{"id":681785,"date":"2026-01-07T00:00:00","date_gmt":"2026-01-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/07\/orascom-construction-secures-egp-15-bn-ras-el-hekma-contract\/"},"modified":"2026-01-07T00:00:00","modified_gmt":"2026-01-07T00:00:00","slug":"orascom-construction-secures-egp-15-bn-ras-el-hekma-contract","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/07\/orascom-construction-secures-egp-15-bn-ras-el-hekma-contract\/","title":{"rendered":"Orascom Construction secures EGP 15 bn Ras El Hekma contract"},"content":{"rendered":"

Good morning, wonderful people, and Merry Christmas to everyone celebrating this <\/strong>morning. <\/strong>We hope you\u2019re all surrounded by family and friends \u2014 and that maybe (just maybe) you\u2019re bridging tomorrow\u2026 <\/p>\n

We have a quick read for you this morning<\/strong>, and it\u2019s pretty much all good news. <\/p>\n

Up first: Stop us if you\u2019ve heard this one before\u2026 <\/strong>The Madbouly government is once again revisiting the state ownership policy and taking inventory of marketable assets on the state\u2019s books. The goal: To add names to the list of companies and other assets it\u2019s going to sell or take public. It\u2019s more of the same \u2014 and more of the same noise about only offering minority stakes. Progress on privatization is important (particularly to the good folks at the IMF), but we really hope policymakers accept in 2026 the reality that there are very few real operators out there that want to be minority partners with *any* government.<\/p>\n

MEANWHILE- B Investments looks like it\u2019s going to IPO Gourmet Egypt<\/strong>, our favourite supermarket and food producer. It could set up a handsome exit for the private equity outfit. If successful, it could serve as proof of concept for other PE players looking to exit (in full or in part) assets they\u2019ve carried on their books through one or more currency crises. <\/p>\n

AND- Reserves are up again<\/strong> (thanks in large part to the revaluation of our gold holdings) and manufacturers<\/strong> could see their real estate tax holiday<\/strong> extended for a few more years. <\/p>\n

^^ We have all of that and more in this morning\u2019s news well, below. <\/p>\n

** But first, a programming note: EnterpriseAM is off tomorrow<\/strong> and Morning Drive<\/a>, our 6:30am daily podcast, is off today. Our Egypt staff will be taking Thursday off to enjoy a three-day weekend in observance of Coptic Christmas. We\u2019ll be back in your inboxes on Sunday morning at the usual time. EntepriseAM UAE, EnterpriseAM Saudi, and EnterpriseAM Logistics all publish tomorrow. <\/p>\n

WEEKEND <\/strong>WEATHER- Look for a high today in Cairo of 25\u00b0C <\/strong>with the mercury rising to 26\u00b0C tomorrow before a return to the high teens this weekend, our favorite weather app tells us. <\/p>\n

December was good for the private sector<\/p>\n

<\/a> A closely-watched gauge says activity in the private sector grew again last month. <\/strong>The Purchasing Managers\u2019 Index (PMI) reading for Egypt in December stood at 50.2, according to S&P Global (pdf)<\/a>. That puts our non-oil private sector in expansion territory for the second month running, albeit at a slower rate than November\u2019s 61-month high<\/a> of 51.1.<\/p>\n

The breakdown:<\/strong> December saw new orders and output expand again, though their pace of growth cooled from November\u2019s highs. For the first time in 10 months, firms accelerated their purchasing activity to keep up with demand. Caution in hiring led to the sharpest drop in employment in over a year as firms focused on productivity over headcount. <\/p>\n

Supply chain issues persisted<\/strong>, as vendor shortages caused input stocks to decline for the third straight month despite higher purchasing. Input cost inflation edged up slightly, driven by rising prices for fuel, cement, and wages. For the most part, companies passed on only modest price hikes despite the rise in their own costs.<\/p>\n

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Watch this space<\/p>\n

<\/a> ENERGY<\/strong> \u2014 The Egyptian Electric Utility and Consumer Protection Regulatory <\/strong>Agency (Egyptera) has hit pause on new net metering rules for solar power. <\/strong>After pushback from business leaders, the regulator opted for further study to ensure the new framework doesn't stifle investment in the sector, chair of the Sustainable Energy Development Association Ayman Haiba tells EnterpriseAM.<\/p>\n

Egyptera will now work on a revised model in a bid to bridge the gap between technical <\/strong>grid stability and the financial viability of private solar projects<\/strong>, Haiba tells us, warning that halting net metering could slow the rollout of solar energy projects.<\/p>\n

IN CONTEXT- <\/strong>The move comes weeks after Egyptera suspended the net metering system<\/a> starting at the end of December<\/a>, a decision that put investments by 168 companies at risk. Any shutdown of net metering could directly hurt Egyptian exporters under Europe\u2019s carbon border tax (CBAM) \u2014 which began its implementation phase on 1 January 2026 \u2014 and weaken the country\u2019s competitiveness.<\/p>\n

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<\/a> REAL ESTATE- <\/strong>Orascom Constructio<\/strong>n has secured a EGP 15 bn contract from the <\/strong>UAE\u2019s <\/strong>Modon Holding to execute the first phase of the Wadi Yemm district in Ras El Hekma<\/strong>, Asharq Business<\/a> reports. The scope of work includes infrastructure, residential units, administrative offices, and a 70-room hotel.<\/p>\n

This contract i<\/strong>s the first physical rollout of Modon\u2019s investment plans<\/strong>, which we noted back in September involved earmarking EGP 45 bn for infrastructure and construction<\/a>. Orascom Construction has effectively captured one-third of the initial budget Modon allocated for local contractors, cementing its role as a lead execution partner in the USD 35 bn mega-project<\/a>.<\/p>\n

What to watch for next: <\/strong>Awards to other large domestic players including Hassan Allam as the Emirati developer looks to accelerate work on Wadi Yemm \u2014 the first of 17 planned districts \u2014 to push forward with delivery of both residential units and tourist facilities.<\/p>\n

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The big story abroad <\/p>\n

Uhm, did the US just *literally* steal Venezuela\u2019s oil? <\/strong>Oil tankers are moving from the US towards Venezuela to begin loading stranded Venezuelan oil after US President Donald Trump said Venezuela will hand over some 30-50 mn barrels of oil to the US. The sale of the cargoes could be worth around USD 3 bn at current prices. <\/p>\n

What he said: <\/strong>\u201cThat money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States,\u201d Trump wrote in a post on his Truth Social platform.<\/p>\n

^^ The must-read on the topic: Trump: Venezuela to turn over 30-50 mn barrels of oil to US<\/a>.<\/p>\n

And the White House is now saying that military force is on the table in its bid to <\/strong>\u201cacquire\u201d Greenland. <\/strong>\u201cPresident Trump has made it well known that acquiring Greenland is a national security priority of the United States, and it\u2019s vital to deter our adversaries in the Arctic region,\u201d White House press secretary Karoline Leavitt said. \"The president and his team are discussing a range of options to pursue this important foreign policy goal, and of course, utilizing the US military is always an option at the commander-in-chief\u2019s disposal.\u201d<\/p>\n

Her remarks came after White House Deputy Chief of Staff Stephen Miller channeled his <\/strong>inner Balon Greyjoy<\/strong>, saying, \u201cNobody\u2019s going to fight the United States militarily over the future of Greenland. \u2026 We live in a world, in the real world \u2026 that is governed by strength, that is governed by force, that is governed by power. These are the iron laws of the world since the beginning of time.\u201d See more in the New York Times<\/a> and the FT<\/a>. <\/p>\n

Closer to home: <\/strong><\/p>\n