AGP Executive Report

Egypt’s Reserves Boost: Egypt’s net foreign reserves hit a record $53.1bn at end-May, up from $52.6bn in January, as the government points to stronger FX inflows and resilience. Capital Markets Watch: The EGX ended Monday mixed, with EGX30 down 0.54% while EGX35-LV rose 0.60%; turnover was EGP 11.0bn and retail investors led activity. Banking & IPOs: Banque du Caire’s IPO has been delayed again, with roadshows pushed to September/October and a target listing by year-end instead of June. Fintech & Payments: Fawry denied links to an alleged $330m HSBC France money-laundering case, stressing it operates under CBE oversight. Corporate Results: ICON’s Q1 2026 consolidated profits jumped 46.98% YoY; Themar’s Q1 profits rose 148% YoY. Energy & Industry: Rosatom says Egypt is its top nuclear-project financing recipient, driven by Dabaa; separately, Egypt inaugurated a facility aimed at boosting exports (Alexandria garment complex) and PM Madbouly backed Nissan’s first locally made Magnite. Trade & Connectivity: Otrovato began partial Kenya-Egypt operations and plans a platform launch in Q1 2027; Egypt also moved to strengthen Red Sea logistics links via Canal Trust services.

Industrial & Real Estate: Tanmiya appointed Egytrend to run a feasibility study for an industrial complex and warehouse in Wadi Hof Industrial Zone, including a proposed financing structure. Commodities: Egypt’s gold and silver prices both fell on June 7, with 24-karat gold down to about EGP 7,421 (buy) and silver easing to around EGP 125. Energy Market Reform: Electricity Minister Mahmoud Esmat met Nexus Analytica to support electricity market regulatory frameworks and controls, including separating generation, transmission and distribution. Markets Watch: EGX ended Sunday in the red as the EGX30 slipped 0.93%; turnover was about EGP 9.25bn and Egyptians dominated trading. Macro Snapshot: Egypt’s economy grew 5.2% in the first nine months of FY2025/26 (July 2025–March 2026), while foreign exchange reserves rose to $53.134bn in May. Sustainable Development: Egypt launched the Egyptian Red Sea Initiative to protect coral reefs and boost sustainable tourism, implemented with UNDP and supported by the Global Fund for Coral Reefs. Industrial Push in Alexandria: PM Madbouly opened and inspected multiple factories and investment projects in Borg El Arab, from textiles and apparel to Lipton’s production line and an industrial complex phase. AI & VC: Edafa Venture acquired Egyptian AI startups Kuadra and IRRI Vision to help scale them across regional markets. Air Connectivity: Riyadh Air announced new routes including Cairo (from June 25) as it expands its Boeing 787-9 fleet. Business & Travel: STORY Hospitality joined GHA’s GHA Discovery loyalty programme, giving guests access to Discovery Dollars and a global hotel network.

Electricity Market Reform: Egypt’s Minister of Electricity and Renewable Energy Mahmoud Esmat met Nexus Analytica to shape the regulatory framework for the electricity market under the Electricity Law, aiming for more transparency, competition, and private-sector participation. Industrial Push in Alexandria: PM Mostafa Madbouly opened and inspected multiple factories and production lines in Borg El Arab, including apparel and food processing, as the government doubles down on local manufacturing and exports. Real Estate Boom: Illume Societies launched Illume Residence in New Cairo’s Sixth Settlement with EGP 4.5bn investment, while a new report says Egypt’s North Coast is driving nearly one-third of gated-community sales nationwide, with EGP 1.2trn in 2024-2025 sales. Islamic Banking Expansion: Al Baraka Islamic Bank announced a cross-border service enabling customers to open and manage accounts in Egypt, building on similar cooperation with Türkiye. Gold Prices Slide: Local gold fell about EGP 290 over the week as global prices dropped, with 21-karat gold hitting EGP 6,475/gram by week-end. Inclusive Employment: Helm Foundation’s Khatwa 2026 forum backed wider training and job access for people with disabilities, including a five-year inclusion partnership with Qaderoon B’ekhtelaf. Labour Mobility Talks: Egypt and Albania discussed supplying skilled Egyptian workers and setting up an MoU framework for labour mobility and vocational training. North Africa Business Spotlight: A Huawei ICT Competition wrap-up highlighted Egypt among the Grand Prize winners.

Egypt Energy Watch: EGPC chief Salah Abdel Karim inspected NORPETCO operations in Egypt’s Western Desert, urging faster drilling to boost production and settle arrears with international partners. Egypt Trade & Finance: Egypt and South Korea launched a strategic dialogue to deepen trade and investment links, while China and Egypt renewed a local-currency swap to strengthen financial cooperation. Banking & Credit: A new push highlights the gap between bank capital and business credit access, with Egypt’s broader liquidity and credit conditions still under scrutiny. FDI & Investment Climate: AfDB flagged Egypt among Africa’s most conflict-vulnerable economies, even as Egypt continues to attract investment and digital finance momentum. Regional Risk: Fresh Iran missile and drone attacks on Bahrain and Kuwait renewed Gulf instability fears, with implications for shipping and energy costs. Sports (Business angle): Egypt’s World Cup warm-up ended in a 2-1 loss to Brazil in Cleveland as preparations continue ahead of the tournament.

Aviation Expansion: EgyptAir is targeting a 125-aircraft fleet by 2030, adding 28 more aircraft for delivery by the end of the decade, citing strong performance, better aircraft availability, and plans to expand Cairo International Airport. Social Protection Push: NASSIT is seeking to extend social security coverage to Sierra Leone’s informal sector via cooperation with the Egyptian Embassy, as nearly 90% of the workforce there is outside traditional schemes. Regional Risk & Trade Pressure: Iran fired ballistic missiles and drones toward Bahrain and Kuwait; both countries said interceptions occurred, while Egypt and others condemned the strikes—raising concerns for regional stability and economic spillovers. Gaza Ceasefire Talks: Hamas says Cairo meetings have started to implement the first phase of the Gaza ceasefire, including ending violations, reopening crossings, and discussing second-phase issues like international forces and disarmament. Diplomatic Follow-Up: Egypt is reportedly moving toward resolving Syria’s ambassador nomination after receiving a new candidate for approval. Culture & Soft Power: The Zahi Hawass Foundation hosted a high-level archaeological tour for foreign ambassadors, highlighting Egypt’s heritage as a diplomatic channel. Archaeology: New digs in Egypt uncovered major finds including Roman-era mummies and mummified pets, plus 18th-Dynasty wooden coffins near Luxor.

Gaza Ceasefire Talks: Hamas says it won’t surrender its weapons now, proposing that only official Palestinian police arms would be visible once a Gaza administration takes over, while a Hamas leadership delegation headed by Khalil al-Hayya arrives in Cairo for a new negotiation round. Regional Security: Kuwait and Bahrain report fresh missile and drone attacks and activated air defenses amid renewed US-Iran tensions. Egypt Investment Push: Finance Minister Ahmed Kouchouk tells global investors in London that Egypt is strengthening macro stability and boosting private-sector participation, with growth above 5% and private-sector share rising to about 67% of investments in Q1. Industrial Strategy: Egypt’s industry roadmap at the EBRD Riga meeting targets deeper local manufacturing and technology transfer, aiming for $100bn in industrial exports by 2030. Diplomacy in Africa: Egypt and Germany coordinate on African affairs and Sudan, while Egypt steps up outreach ahead of AU events including Alamein Africa. Archaeology & Tourism: Egypt’s antiquities ministry announces a new Greco-Roman cemetery discovery at Tell Kom Aziza in Beheira, with diverse burial styles and everyday artifacts. Business & Finance Signals: Egypt’s investor meetings also highlight tax/customs facilitation and logistics, as the country courts more capital.

Egypt’s Samurai bond push: Egypt is nearing the final steps to issue yen-denominated “Samurai bonds” worth about $500m, its first such return in three years, with a partial guarantee expected to support investor confidence and borrowing costs. IMF talks and reform timeline: Prime Minister Mostafa Madbouly said Egypt doesn’t expect a new IMF programme after the current EFF ends in December, even as the IMF’s seventh review in Cairo could unlock around $1.6bn by June 15. Tourism drive to Japan: Foreign Minister Badr Abdelatty urged Japanese travel agencies to expand Egypt packages, citing rising Cairo–Tokyo direct flights and highlighting the Grand Egyptian Museum as a key draw. Business climate and state listings: Egypt plans to cut red tape for firms and could list up to four additional state-owned companies on the stock exchange within 12 months, as it pushes reforms tied to the IMF-backed programme. Energy and investment signals: Egypt is also moving on battery-storage projects and other energy deals, including new cooperation discussions with Japan on broader financial and investment support.

IMF Track: Egypt’s PM Mostafa Madbouly says the current IMF program ends in Dec 2026 and Cairo “is not in need of a new program,” as the IMF prepares to complete the 7th review in summer. FX & Inflation Watch: The Egyptian pound stayed broadly stable while the dollar and euro eased at banks, with Fitch pointing to exchange-rate flexibility as a buffer against shocks. Capital Markets: EGX is in talks with S&P Dow Jones over reclassifying Egypt from emerging to frontier markets, while it plans new futures contracts and more state-company listings by end-June. State Asset Push: Madbouly also reiterated plans to list four additional state-owned companies before end of June as part of the State Ownership Policy. Debt & Funding: EFG Hermes led Egypt’s record EGP 5.1bn corporate bond issuance for EFG Corp-Solutions, and Egypt reported a 3.5% primary surplus in the first nine months of FY2025/26. Trade & External Accounts: Egypt’s trade deficit widened 48.8% YoY in March, while remittances hit a record $34.9bn in nine months (+32% YoY). Business & Tech: Foras.AI invested in Efham.ai to launch an Arabic AI learning community across 15+ markets, and SMC Media signed a TikTok partnership as official ad partner in Egypt and KSA. Education: School attendance jumped to 87% from 15% linked to reforms, including smaller class sizes and improved literacy outcomes.

State Asset Sales & Subsidy Reform: Egypt plans to list 4–5 state-owned companies on the EGX this year and shift from in-kind subsidies to cash to better target support, PM Mostafa Madbouly said. Capital Markets: EFG Hermes closed an E£5.1bn corporate bond issuance for EFG Corp-Solutions, the biggest in Egypt’s debt capital market, boosting funding for leasing and factoring. Energy Storage Push: AMEA Power signed EPC deals for 1.5GWh of standalone BESS projects in Egypt (500MWh Horus in Zafarana, 1,000MWh Nefertiti in Benban), with Egypt targeting large-scale storage capacity. Trade & Logistics: Egypt approved the creation of Canal Trust Ship Services to manage specialized vessels linking Egyptian ports with East Africa, aiming to expand exports and intra-African trade. Red Sea Environment: Egypt reiterated efforts to protect the Red Sea’s marine ecosystem and coral reefs, including waste management and biodiversity programs. Business & Markets Watch: TAQA Arabia reported a 65% YoY jump in Q1 2026 net profit to EGP 225m, with revenue growth across petroleum, gas, power and water.

Egypt’s External Financing: Egypt is finalising steps to issue a $500m-equivalent yen-denominated “Samurai” bond, with the AFDB set to partially guarantee the deal, as Cairo seeks fresh currency support amid Iran-war pressure. Trade Balance Watch: Egypt’s trade deficit widened 48.8% y/y to $4.6bn in March as exports fell 2.5% to $4.6bn while imports rose 17.8% to $9.3bn, driven by higher petroleum, gas, crude oil and wheat imports. IMF Timeline: Egypt’s July-to-December funding outlook hinges on the IMF’s seventh and eighth reviews, which could unlock about $3.3bn in disbursements if completed, while repayment peaks in June-July. Public Finance & Social Payments: The government disbursed EGP 42bn in early June pension payments to 10.2m beneficiaries via its digital social insurance system. Energy Transition: Axens and Green Sky Capital announced a 200,000 tpa sustainable aviation fuel plant in Egypt, targeting first production by end-2027. M&A Snapshot: Egypt recorded eight M&A deals worth $22m in Q1 2026, down in volume but still seen as resilient. US Forced-Labour Tariffs: The US proposed 12.5% tariffs on imports from eight African countries including Egypt over forced-labour enforcement gaps, pending comments and hearings.

Suez Canal Economic Zone Push: SCZONE chairman Waleid Gamal El-Dien met Sweden’s ambassador to pitch new investment in ports, logistics, automotive, data centers and green fuel, citing $16bn attracted in four years. Export & Industry Support: Egypt’s 2026/27 budget sets aside EGP 90bn for export rebates, tourism, industrial and agricultural financing, entrepreneurship and automotive support. Tax Clarity for Households: The Egyptian Tax Authority says proposed natural gas tax amendments won’t raise household gas bills, as the change targets the buyer/seller entity. Gold Watch: Local gold prices fell on a stronger dollar and geopolitics; Marsad Al Dahab also says July changes relate to VAT on manufacturing charges, not higher fees. Private Sector Pressure: S&P Global PMI shows Egypt’s non-oil private sector still contracting in May (47.1), with demand weak and costs rising. Banking Liquidity Boost: China and Egypt central banks renewed and expanded a local-currency swap to 30bn yuan for three years, aiming to deepen trade and stabilize markets. Real Estate Expansion: Palmier Developments plans West Cairo growth with integrated communities and hospitality near the GEM and Pyramids area.

Egypt’s Development Plan: Egypt’s Ministry of Planning unveiled the FY 2026/27 economic and social development plan, targeting about EGP 3.7tn in investments and a bigger private-sector role (59% of total). FX & Remittances: Remittances from Egyptians abroad hit $34.9bn in nine months, becoming the most dependable hard-currency source as Suez Canal receipts slump. Banking Snapshot: Egypt’s banking sector net foreign assets rose to $22.9bn in April 2026. Trade & Industry: Egypt’s customs authority plans higher VAT charges on gold from July 2026, while the government also moves on tax/customs/property facilitation packages for the next fiscal year. Regional Risk: EBRD warned Middle East war-driven energy shocks will slow growth in Egypt and other developing markets. Connectivity Boost: EgyptAir resumed Los Angeles flights after more than 20 years, with three weekly A350 services, plus Chicago from June 21. Global Finance Angle: Gulf markets ended lower on US-Iran negotiation uncertainty, with Egypt’s blue-chip index slightly up.

Customs & Tax: Egypt’s Customs Authority issued Tariff Circular No. (33) of 2026 updating “making charges” for platinum, gold, silver jewelry and gemstones, with higher benchmarks for locally made gold jewelry from July 1, 2026—raising 21-karat making charges to EGP 64.41/gram and 18-karat to EGP 96.64/gram (VAT then applies). Food Security: Egypt received over 4.3 million tons of locally produced wheat in the current procurement season, about 86% of the 5 million-ton target, after raising the procurement price to 2,500 EGP per ardeb and expanding cultivated area. Tourism: UN Tourism says international arrivals rose 2% in Q1 2026 to 307 million, but the Middle East conflict cut March growth to 0.4% and may trim full-year growth by 1–2 points; Egypt is highlighted with a 16% arrivals jump. Real Estate: Egyptian Real Estate Group reported Q1 2026 net profits up 91% YoY to EGP 1.154m, with revenues rising to EGP 3.662m. Energy & Trade Positioning: Egypt is pushing to become a global logistics hub around the Suez Canal Economic Zone, with studies on expanding global logistics and trade facilitation.

Suez Logistics Push: Egypt’s PM Mostafa Madbouly reviewed plans to set up a global logistics distribution hub inside the Suez Canal Economic Zone (SCZONE), aiming to pull in serious investors and deepen trade and supply-chain capacity. Tax & Customs Relief: Finance Minister Ahmed Kouchouk said FY2026/27 will roll out new tax, customs and property facilitation packages, including 40 measures to cut burdens, speed customs clearance and support investors. Digital Real Estate Boost: Egypt’s Financial Regulatory Authority cut fees for Misr for Central Clearing, Depository and Registry (MCDR) for regulated digital real estate investment fund subscriptions to widen access and financial inclusion. BRICS Disaster Resilience: Egypt will send delegates to the BRICS Disaster Risk Reduction DRR meeting in Odisha’s Puri on June 3-5, focused on resilient infrastructure and DRR financing. Smartphone Demand Hit: A report flags a global smartphone slowdown tied to the semiconductor chip shortage, with production costs rising and launches delayed. African Banking Snapshot: McKinsey says African banking revenues topped $100bn in 2025, with Egypt among the top revenue generators. Work Rights Watch: Human Rights Watch warns Egypt’s disability rights law still faces major implementation gaps that block access to jobs.

Workers’ Rights Watch: The ITUC says repression of labour protections is worsening globally, with 72% of 151 countries denying workers access to justice and rights to strike and collective bargaining restricted in most countries; Egypt in the list: Egypt is named among the worst for workers’ rights, alongside Argentina, Panama, Nigeria and others; Tourism Push via Antiquities: Egypt announced major new finds at Ehnasiya Al-Medina in Beni Suef, including a marble head of Aphrodite and Roman basilica remains, as the country leans on archaeology to boost tourism revenue; Energy Snapshot: Egypt’s natural gas imports rose 36% YoY in Q1 2026 to about 6 bcm, with LNG imports up sharply as domestic output declines; Transport Upgrade: Alexandria’s Abu Qir metro phase is set to begin trial operations in March 2027, integrating with the upgraded Raml Tram; Diplomacy: Egypt’s FM Badr Abdelatty met Cameroon and Angola counterparts to deepen economic and trade cooperation and coordinate on regional stability.

Budget Push: Egypt’s Finance Minister Ahmed Kouchouk earmarked EGP 90bn in FY2026/27 to boost production, exports and entrepreneurship, including EGP 48bn for export rebates and EGP 7bn for tourism support. Real Estate Finance: The FRA cut fees for Misr for Central Clearing, Depository and Registry (MCDR) tied to digital real estate investment fund certificates, aiming to lower costs and widen access via regulated online platforms. Developer Results: Madinet Masr posted Q1 2026 net profit of EGP 682.5m, with revenue up 7.4% to EGP 2.8bn, driven by a surge in unit deliveries to 831. Markets & FX: Egypt’s pound strengthened in May while gold prices fell 2.7% locally; the Federation of Egyptian Industries linked the drop to a firmer pound and weaker global bullion demand. Aviation Outlook: IATA said Egypt’s passenger traffic could grow up to 3.8% annually through 2050, citing connectivity and tourism potential. Diplomacy & Trade: South Korea launched its first ministerial meeting with 50 African nations to deepen cooperation amid supply-chain and energy/food security concerns. Regional Risk: Egypt condemned Israel’s expanded ground operations in southern Lebanon, calling it a violation of Lebanese sovereignty and urging full withdrawal.