Egypt

Economic and general news

Egypt’s State-Owned Enterprises (SOE) Unit aims to compile comprehensive data and financial reports on 230 entities by the end of November, including companies transferred to the Sovereign Fund of Egypt (TSFE), according to unidentified sources familiar with the matter. The targeted entities fall under the updated State Ownership Document, although the sources did not disclose their names or specify how many had been transferred to the TSFE. The government also aims to publish its annual report on state-owned companies by the end of October, covering profitability, solvency, liquidity, debt, arrears and government support based on FY24/25 performance, at both company and sector levels. However, the October report is not expected to cover all 230 entities, with full data and financial-report coverage targeted by the end of November. The sources did not outline any decisions to sell, list, or restructure the companies, nor did they disclose the results of the government’s portfolio screening and classification exercise, suggesting the current objective is limited to expanding scope and improving the quality of financial data and reporting. (Al Mal)

The Egyptian Exchange (EGX) is evaluating issuing Egyptian Depositary Receipts (EDRs) for Nigeria-based Dangote Group to strengthen cross-continental investment links, the Egyptian Cabinet announced. Dangote Group targets USD50.bn in investments until 2030, in countries including Egypt, according to Dangote’s president and CEO. (Egyptian Cabinet)

The EGX is working to restructure and revise the methodology of its Tamayuz index for SME companies, according to the EGX’s vice chairman. Additionally, the EGX is collaborating with the London Stock Exchange (LSE) to promote global depositary receipts (GDRs), aiming to increase their liquidity and encourage more Egyptian companies to issue GDRs. (Al Borsa)

The Egyptian government plans to establish nine investment zones across Cairo, Giza, and Matrouh with an investment cost of EGP5trn, according to the head of the Investment and Technology Zones Department at the General Authority for Investment and Free Zones (GAFI). Development periods range from five to 20 years, and construction is currently c40% complete. The zones aim to attract foreign investment in services, technology, and data centers, with the goal of exporting 100% of their services. Also, GAFI issued 21 decisions to establish investment zones, of which 12 are operational and nine remain under construction, according to its CEO. Existing zones have attracted EGP66.5bn in investments and have occupancy rates exceeding 90%, and Turkish investors account for the largest share of demand for private free zones, while GAFI has issued 57 golden licenses to date and aims to exceed 60 by year-end. The authority also established 26,000 companies in 1H26, up 20% y-o-y. The government is also planning to establish investment zones along the Red Sea coast, following the model of projects on the Mediterranean coast, including Alam El Rum, with further details expected soon. (Al Borsa)

The Egyptian oil sector will launch the first phase of an advanced offshore seismic survey project covering 18,000 sqkm in Egypt’s East Mediterranean Sea waters within the next two weeks to boost natural gas discovery opportunities and provide highly accurate geological data to attract new investments and accelerate exploration decisions, according to the petroleum minister. The project uses Ocean Bottom Node (OBN) seismic survey technology. The Egyptian Natural Gas Holding Company (EGAS) is executing the project in cooperation with a consortium of SLB and Viridien. The project is part of an integrated seismic survey program in Egyptian East Mediterranean waters aiming to cover a total area of 95,000 sqkm to support the evaluation of undiscovered hydrocarbon resources and maximize their utilization. (Mubasher)

The Egyptian government increased daily heavy fuel oil (mazut) supplies to power plants by 66.7% to 25,000 tons in October because LNG import costs rose, according to an unidentified official source. The government plans to import an additional 300,000 tons of mazut this month and reduce natural gas supplies to power plants to 3.3 bcf/day. The shift follows an increase in imported LNG prices by c71% m-o-m to USD24/mmbtu in October, compared with USD14 for an equivalent amount of mazut. The cost of an LNG cargo has risen c68% m-o-m to USD84m. (Asharq Business)

UAE-based Fertiglobe (FERTIGLB UH), a subsidiary of Abu Dhabi National Oil Company (ADNOC), is studying plans to establish a USD1.5bn integrated phosphate fertilizer complex in Ain Sokhna, Egypt, with a targeted annual production capacity of 1.3m tonnes of diammonium phosphate (DAP), with commercial operations expected to begin in 2031, according to a statement by Egypt’s Ministry of Petroleum. The minister of petroleum discussed the preliminary plans with Fertiglobe CEO, with the project aiming to add value to Egyptian phosphate rock by processing it into industrial products rather than exporting it in raw form. The company is completing a feasibility study with consulting firms, while securing long-term supplies of phosphate rock remains a key requirement for completing the project assessment, the ministry added. (Asharq Business)

The Energy Storage Business Unit of Rosatom’s Fuel Division (Energy Storage Business Line) and the Egyptian technology company Telecom and Technology Co. (Teletech) signed an agreement to establish local assembly facilities in Egypt, provide personnel training, and gradually expand production capacity, it announced.  The planned facilities will have a potential production capacity of 500 MWh per year. The cooperation between the Russian and Egyptian companies is expected to create a platform for deploying modern energy storage solutions across sectors including the electric power industry, telecom, data centers, oil and gas, and other industrial applications. (Company release)

Qatari Diar is developing a 50,000 sqm services free zone within its Alam El Rum project in Egypt, designed to serve as an international business hub for information and communications technology (ICT) and financial services companies, according to its chief project delivery and development (Asia & Africa). In related news, Egypt’s minister of investment has called on Qatari Diar to explore further investment opportunities in Egypt and benefit from Egypt’s offered incentives, he announced. (Al Borsa)

The Egyptian government sold yesterday 3-month T-bills worth EGP46.8bn, with a bid-to-cover ratio of 1.84x, at an average yield of 23.956%, up from 23.827% previously, and 9-month T-bills worth EGP37.9bn, with a bid-to-cover ratio of 3.28x, at an average yield of 25.383%, slightly up from 25.352% previously, according to the Central Bank of Egypt (CBE)’s data. (CBE)

Company news

Banque du Caire (BQDC EY) | EFG Holding (HRHO EY) | CI Capital Holding for Financial Investments (CICH EY): Banque du Caire is offering a 30% stake, 4.575bn shares, in an initial public offering (IPO) on the Egyptian Exchange (EGX), at an indicative price range of EGP4.82-5.30/share, according to the IPO’s prospectus. The IPO consists of a private placement tranche of up to 4.35bn shares, representing 95% of the offering and 28.5% of the bank’s total shares, and a public tranche of 229m shares, representing 5% of the offering and 1.5% of the bank’s total shares. Subscription in the private placement and public tranches will start today, with the private placement tranche ending on 23 October and the public tranche on 28 October; the final IPO price will be determined through a book-building process and announced on 26 October. The offered stake may increase to 45%, pending approval from the Financial Regulatory Authority (FRA). EFG Hermes, the investment banking arm of EFG Holding, is acting as the joint global coordinator and joint bookrunner, and CI Capital Investment Banking, the investment banking arm of CI Capital Holding for Financial Investments, is the lead global coordinator and joint bookrunner. The independent financial advisor (IFA) had set a fair value of EGP80.9bn (EGP5.30/share) by assigning a 50% weight to the residual income valuation methodology, a 25% weight to a peers’ P/B multiple valuation, and a 25% weight to an average P/B of other banks’ acquisitions. The offering will include a 30-day stock stabilization fund for the IPO’s public tranche. The minimum subscription in the private placement tranche is EGP5m worth of shares for qualified investors and EGP10m for institutions, with a maximum stake of 10% of the bank for a single investor, while the minimum subscription in the public tranche is 100 shares. (Al Mal, Al Borsa, EGX)
Our comment: The indicative price range implies a P/B of 1.10-1.21x for BQDC, a significant discount to COMI’s latest P/B of 1.78x, ADIB’s P/B of 1.53x, and close to CIEB’s P/B of 1.23x. The implied P/B at the lower end of the indicative price range is also lower than that of The United Bank of Egypt (UBEE) IPO of 1.21x at the time of its offering in late 2024. The lower end of the indicative price range is also lower by c9% than the IFA valuation of EGP5.30/share.

Misr Beni Suef Cement (MBSC EY): The company purchased some  8,981 treasury shares during the 14 October trading session and 55,331 treasury shares during the 15 October trading session, increasing its treasury share holdings to 373,412, it announced. (EGX)

Bonyan for Development and Trade (BONY EY): The company purchased some 500,000 treasury shares during the 15 October trading session, it announced. (EGX)

Valmore Holding (VLMR EY, VLMRA EY, VALMORE KK): The company purchased treasury shares on Boursa Kuwait, representing c0.03% of its total shares during yesterday’s trading session, it announced. (EGX)

Arab Dairy Products (ADPC EY) | Gadwa for Industrial Development (GDWA EY): Regarding circulating news that Gadwa for Industrial Development is considering exiting its investment in Arab Dairy Products Company (Panda), the company denied any negotiations regarding the sale of its stake in ADPC to date, it announced. (Mubasher)

Nasr Company for Civil Works (NCCW EY) | Madinet Masr Housing (MASR EY): Nasr Company for Civil Works, a subsidiary of Madinet Masr Housing, sold unused equipment for EGP52.8m in a public auction on 14 October, according to a bourse filing. (EGX)

Arab Company for Asset Management and Development (ACAMD EY): The company reported a 2Q26 net income of EGP4.91m, reversing a net loss of EGP8.31m a year earlier, according to its audited financials. (EGX)

Qatar

Economic and general news

Qatar Airways signed its first Japanese Operating Lease with Call Option financing covering three Boeing 787-9 Dreamliner aircraft, it announced. (Bloomberg)

Saudi Arabia

Company news

National Agricultural Development (NADEC AB): The company’s 3Q26 net income decreased c44% y-o-y to SAR30.4m, it announced. (Bloomberg)