Al Ahly Pharos

Egypt's PMI recorded 50.7 in January, up from 48.1 in December, signaling a renewed improvement in the health of the Egyptian non-oil economy at the beginning of the year, on growth in output and sales as well as falling cost pressures to eight-month low.

The government will lease a Turkish floating storage regasification unit starting June and for the duration of the summer, an unnamed government official said. It will cost some USD45 million to lease the unit from June and until November. The unit will liquify some 500 million cubic feet of gas a day for electricity generation in efforts to meet heightened domestic demand during the summer months.

Turkey’s Kipas Textiles plans to invest EGP1 billion to set up its second fabric factory in Egypt, expected to go live before the end of the year, a company representative said.

A consortium of Egyptian, Turkish, and Chinese investors led by homegrown leather manufacturer Fabrica is looking into setting up a EGP200 million industrial complex for leather products. The three partners will hold equal stakes of 33.3% each in the complex, which will focus on export. Construction, facilities preparation, and production lines installation are scheduled to begin next year 

The House will “within days” introduce a draft law scrapping the capital gains tax on EGX transactions and reinstating a stamp tax, as part of measures aimed at boosting investment, deputy chairman of the Budget Committee Yasser Omar said.

Cairo House Egypt inked an agreement with Tourism Investment and Marriott International to turn the Mogamma building into a 500-key Autograph Collection Hotel.

The International Finance Corporation’s full airport privatization plan should be out in the next six months.

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

The Ministry of Finance collected more than USD1 billion from Egyptians working abroad as part of the initiative to facilitate the import of expatriates’ cars, up to January-end, an official said.

The CBE has adjusted its mortgage finance initiative for low and middle income groups, its changing income brackets, interest rates, and minimum downpayments. The low-income category, with a monthly net income not exceeding EGP10-12k for individuals and EGP13-15k for households, will be able to get their hands on subsidized mortgage financing at a declining 7.5-8% interest rate. The middle-income category, with a monthly income not exceeding EGP 20k for individuals and EGP 25k for households, can secure financing at a declining 12% interest rate. The minimum down payment for accessing the financing has been set at 20% for both groups.

The Ministry of Finance is considering exempting the banking sector from the tax on international loan returns. The government previously introduced an amendment to Article 56 of the Income Tax Law, canceling the tax exemption that was granted to interest paid to non-residents on long-term international loans exceeding three years, and it is expected to have a significant impact on the ability of Egyptian banks to secure USD financing from foreign markets.

The local consortium setting up the 300k sqm dry bulk terminal in Dekheila Port is expected to deliver it in 4Q25 with investments to reach USD450 million. The consortium includes Mediterraneo Egypt, Latt Trading and Shipping, a SWDY company, and the Transport Ministry’s Holding Company for Maritime and Land Transport.

The European Bank for Reconstruction and Development (EBRD) has sold the last 8.8% it held of ISPH.

CNFN subsidiary, Contact Creditech, announced the launch of its Maestro program,available through the Contact Now application, enabling customers to customize repayment plans. 

Market Overview 

Prepared by: Mayada Amin- CETA, CFTe

Kuwait’s Ali Alghanim & Sons Group is looking into setting up an insulin factory in Egypt in partnership with foreign companies as part of its expansion in Egypt. The group is also exploring the development of a tourist resort overlooking the Red Sea.

The government holding intensive discussions to resolve the issue of the long-awaited capital gains tax on EGX transactions, and even look for alternatives, a government source said. 

Egypt has reportedly signed agreements with Shell and Total Energies to purchase a total of 60 LNG shipments in 2025 for around USD3 bn, an unnamed government said.

Planning and International Cooperation Minister Rania Al Mashat touted the Suez Canal Economic Zone (SCZone) as a potential hub for Ukrainian grain storage and re-export to Africa during a high-level meeting in Cairo with Ukrainian Agrarian Policy and Food Minister, according to a ministry statement. She also invited international partners to visit the area to explore its potential as a logistics and manufacturing hub.

The Liberian crude oil tanker Chrysalis passed through the Suez Canal yesterday for the first time since being targeted in a Houthi attack last July, according to a statement from the Suez Canal Authority. 

The CBE sold USD1.06 billion in T-bills with a 364-day maturity period, at an average yield of 4.25%.

The CEO of the International Islamic Trade Finance Corporation announced that a program was signed with the Egyptian government to provide financing facilities to support petroleum products and food security worth USD1.5 billion, adding that the financing will be allocated primarily to the EGPC and GASC.

EFIC released 4Q24 unaudited standalone results posting a 169% YoY (+258% QoQ) to EGP950.5 million, bringing FY24 net profit to EGP1.5 billion, a 161% YoY.

Raya Auto plans to establish a USD 50 mn EV assembly plant in Egypt next year, CEO of the Raya Holding automotive unit Mohamed El Naggar told Asharq Business. 

Head of the Egyptian Drug Authority stated their strategic plan for building inventories for six months to the most important medicine's active ingredients, as a part of solving the scarcity crisis in the Egyptian drug market. 

Head of suez canal authority Ossama Rabie declared the accomplishment of the canal duplication project and its readiness for operations. Rabie added that the authority issued the navigational charts for the canal.

- Market Overview 

- COMI

- ADIB

- ORAS

- BTFH

- prepared by: Mayada Amin- CETA, CFTe

Kuwait’s Bukhamseen Group is looking into establishing a USD125 million hotel in Egypt as part of its plan to expand its presence in the Egyptian market.

The Kuwaiti Jazeera Airways is interested in expanding its presence in the local market, boosting investments in airport development and mulling a mass transit project.

Aref Investment Group is looking to expand its investments in Egypt in the fields of education, healthcare, manufacturing, and logistics.

Al Mulla Group is in talks with the Japanese Mitsubishi to localize the manufacture of its vehicles in Egypt. The group is also mulling expanding its investments in the education and financial services sectors.

Prime Minister met with the Emirati minister of industry and investment to review progress on joint projects, including the industrial projects being set up in Ras El Hekma. The discussion also covered the latest on joint energy, data centers, and renewable energy projects, and airport management.

Two Chinese phone companies intend to expand in the local market by manufacturing their products in Egypt during the second half of this year, according to local press.

Electronics and mobile accessories manufacturer Ugreen, in collaboration with Blooms Group, has officially launched in Egypt with a USD5 million investment. The company will offer a range of power banks and audio devices, with more devices to be introduced later this year.

Food industry exports hit their highest level in 2024 at USD6.1 billion, up 21% YoY.

Canada has responded to Trump with a first round of 25% tariffs on imports worth some USD107 billion, including USD20 billion worth of goods that will be impacted starting Tuesday. The EU also responded to Trump’s statements that it would be “absolutely” facing tariffs “pretty soon,” saying that the bloc “would respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods.”

BTFH reported a net income of EGP1.7 billion in 2024, marking a 4.6x y-o-y increase. Consolidated revenues rising 4x year-on-year to EGP7.2 billion. Also, EGA approved an increase in the company’s paid in capital from EGP10.9 bn to EGP21.8 bn through rights issue.

MCQE denied in an official statement what was reported about negotiations being held up with a Kuwaiti entity to buy a stake in the company for USD1 per share.

SVCE has not received any Emirati offers for its stake in Building Materials Industry Company (BMIC). The announcement follows a report from local media claiming that an unnamed Emirati company had submitted an offer to acquire a controlling stake in BMIC in exchange for settling its EGP4 billion outstanding debt.

The Oil Ministry increased natural gas supplies allocated for the industrial sector by 10% in 1H25. Export-orientated industries are prioritized for receiving gas supplies.

Local pharma sales climbed 42% YoY in 2024 to EGP292 billion. The increase came on the back of price rises that began picking up in the second half of the year. Prices are likely to remain stable for the time being in 2025 as long as the EGP/USD exchange rate is stable.

RMDA achieved strong sales in December 2024, pushing total 2024 sales up by 46% YoY.

Weekly Commodities Update

Last Price | WoW Change, %
Brent, USD/bbl | 76.8 | -2.2%
Diesel-HSFO Spread, USD/ton | 263.3 | -2.7%
Egypt Urea, USD/ton | 433.5 | 0.6%
Polyethylene, USD/ton | 940.0 | 0.0%
Polypropylene, USD/ton | 957.5 | 

Iron Ore 65%, USD/ton | 123.3 | 0.0%
Steel/Iron Ore Spreads, USD/ton | 377.5 | 3.0%
LME Aluminum Cash Price, USD/ton | 2,592.2 | -1.6%
Egyptian Retail Cement, EGP/ton | 3,012.0 | 2.0%
Steam Coal FOB Newcastle Australia, USD/ton | 115.5 | -0.7%
SMP, USD/MT | 2,729.0 | 0.0%

- Market Overview 

- SKPC

- ORAS

- ADIB

- RMDA

- Prepared by: Mayada Amin- CETA, CFTe

Kuwait’s Bukhamseen Group is planning to acquire one of Egypt’s largest tourism and hospitality investment companies in a USD4.9 billion transaction, Al Mal reports without disclosing the identity of the sought after company.

The government is in talks to temporarily use Cyprus’ floating storage and regasification unit Etyfa Prometheus, according to industry publication Mees. 

Suez Canal Authority head Osama Rabie went on a campaign to persuade shipping lines to return to the Canal, telling representatives of 23 leading companies in the field that “the current conditions in the Red Sea region are witnessing many positive indicators towards the start of stability returning to the region,” according to an authority statement.

The European Central Bank lowered interest rates by 25 bps to 2.75% at the end of last week as it pivots from fighting inflation to tackling sluggish growth, it said in a statement.

RMBV (RMBV Private Equity), based in the Netherlands, plans to invest USD100 million in the Egyptian market in 2025. 

The Suez Canal Economic Zone achieved a 32% YoY growth in its revenues during 1H FY2024/25, recording about EGP5.6 billion, compared to EGP4.3 billion during the same period of the previous fiscal year, and an increase of 8% over the budget expectations.

The CBE plans to issue USD1 billion worth of one-year dollar T-bills during the current week, in line with the maturity of USD1.06 billion worth of T-bills, at yield of 5.1%.

The Senate will discuss today proposed legislative amendments to the Capital Market Law, aiming to enhance the investment climate and attract foreign investments. 

CIRA reported solid 1Q24/25 financial results, where net income came in at EGP178 million in 1Q24/25 with NPM of 18%, compared to net income of EGP107 million in 1Q23/24 with NPM of 12% and net loss of EGP374 million in 4Q23/24. CIRA is currently trading at FY24/25f P/E of 50.2x and EV/EBITDA of 8.5x.

HELI received the 766 feddan land plot in Capital Gardens in East Cairo. The value of the land plot amounts to EGP12.1 billion, with HELI having paid the down payment and secured an installment schedule for the remaining amount over eight years.

EGTS’s court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 4 February 2025.

El Attal Holding intends to go public in 2025, with the developer planning to list around 28% of its shares on the EGX in 3Q25.

An unnamed Emirati company has submitted an offer to acquire a controlling stake in indebted Building Materials Industry Company (BMIC) in exchange for settling its EGP4 billion in outstanding debts, according to local media. 

State-owned Assiut Oil Refining Company (ASORC) has broken ground on its EGP550 million, 10 MW solar power project, according to an Oil Ministry statement. 

The FRA approved the capital increase decision of ATLC, increasing authorized capital from EGP1 billion to EGP4 billion and increasing issued and paid-up capital from EGP558.67 million to EGP1 billion; the increase is distributed over 176.53 million shares with a nominal value of EGP 2.5 per share. 

ETRS and Saudi Arabia launched a new shipping company — Egytrans Arabia —that will serve as a central hub for delivering logistics services and strengthening industry partnerships. 

The UAE’s Burjeel Holdings will establish a bone marrow transplant unit in Egypt under an MoU signed with the Health Ministry. The project will be led by Burjeel Medical City and supported by Burjeel Cancer Institute.

Hilton opened the 255-room Hilton Cairo Nile Maadi overlooking the Nile.

- Market Overview

- ADIB

- CCAP

- MASR

- ABUK

- BTFH

- Prepared by: Mayada Amin- CETA, CFTe

Who’s in and who’s out of the EGX30? 

• In:

1. Orascom Development, 
2. Rameda, EgyptAlum, 
3. Ibn Sina Pharma, 
4. Qalaa Holdings, and 
5. Eipico 

• Out:

1. Ezz Steel, 
2. B Investments, 
3. Faisal Islamic Bank of Egypt, 
4. Cleopatra Hospitals, 
5. Elsewedy Electric, and
6. Heliopolis Housing 

The Prime Minister said that the government is working the social protection package including increase in salaries and pensions, which is expected to be approved in 2025.

Recently approved SME tax system could save taxpayers, and set the government back, some EGP 800 bn in foregone tax revenues.

 Remittances from Egyptians working abroad continued their consecutive surges backed by the economic reform measures, taken in March 2024, with a 65.4% increase in November 2024 to reach approximately USD 2.6 billion.

The EGX is considering launching a T-bills index to meet rising investor interest, according to an EGX statement.

The Cabinet discussed a draft of the Prime Minister’s decision regarding establishing an authority for the financial and business zones, to regulate those areas to be established in Egypt.

The US Federal Reserve unanimously kept interest rates steady in the 4.25%-4.50% range, it said in a statement yesterday, as they assess the impact of Trump’s economic policies on inflation and growth.

Turkish company Klepsam is planning to build the country’s largest sanitary ware factory, Egyptian-Turkish Business Council member Matta Bishay said. The project will see investments of USD 7-10 mn in its first phase to manufacture water meters, which are currently heavily imported.

Ethydco is planning to borrow USD40 million from Al Mashreq Bank to repay natural gas dues to GASCO. 

Eni has resumed drilling operations at the Zohr gas field after the Saipem drillship arrived in Egyptian waters on Tuesday.

UAE’s Dragon Oil struck oil at the East Crystal-1 exploratory well in the Gulf of Suez, the Oil Ministry said in a statement. Initial tests show output exceeding 2k barrels per day.

The Egyptian arm of India’s Everest Kanto Cylinder working on establishing the country, and also continent’s, first factory producing compressed natural gas (CNG) cylinders, according to a statement. 

EGPC plans to connect three new crude oil development wells in the Red Sea governorate to the national grid within four months, which will add 1,250-1,350 bbl/day. 

A Governmental committee studies the reduction of sea shipping freights by 50% through 1Q25, due to the geopolitical scene in the region that pulled down the containers' volumes in south red sea area. 

HRHO-backed K-12 operator Spark Education Platform (SEP) inked definitive agreements to acquire a majority stake in Riyadh’s Qimam El Hayat International School.

- Market Overview 
- ABUK 
- ALCN
- CIEB 
- CLHO 
- MFPC


- prepared by: Mayada Amin- CETA, CFTe