Egypt

Economic and general news

Egypt and Spain signed the first-of-its-kind Partnership for Development Agreement (2025–2030) on the sidelines of the Egypt–Spain Business Forum as part of the strategic partnership framework established between them in February 2025, underlining their determination to strengthen joint development efforts in priority sectors, the State Information Service (SIS) announced. (SIS)

Egypt’s local debt rose by c3.5% q-o-q to EGP11.1trn in 4Q24/25 from EGP10.7trn in 3Q24/25, while public debt (including local and external debt) increased c1.8% q-o-q to EGP14.9trn from EGP14.7trn in 3Q24/25, according to the Ministry of Planning’s data. Meanwhile, the total government external debt declined by c2.7% q-o-q to EGP3.89trn in 4Q24/25, the data showed. Short-term local debt increased c2.8% q-o-q in 4Q24/25 to EGP9.52trn from EGP9.26trn in 3Q24/25, medium-term local debt decreased c9.9% q-o-q to EGP329bn from EGP364bn in 3Q24/25, while long-term local debt increased c14.2% q-o-q to EGP1.21trn in 4Q24/25 from EGP1.06trn in 3Q24/25. In related news, Egypt is preparing to repay USD750m for maturing international bonds on 6 October, according to data. (Al Shorouk, Al Arabiya, Al Borsa)

Egypt’s Suez Canal revenue increased c11% y-o-y in July 2025 to USD359m, the number of ships passing through the canal inched up c0.8% y-o-y to 1,055 ships, and the tonnage increased c6.8% y-o-y to 44.9m tons, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). (Al Arabiya)

Egypt’s Ministry of Petroleum is studying rescheduling the industrial sector’s debts, including waiving accumulated interest if companies pay c50% of the original arrears, according to unidentified sources close to the matter. The total industrial sector debt exceeds EGP1.0bn, excluding interest, with most of this debt accumulated since the COVID-19 pandemic, the sources added. The debts are mainly concentrated in the fertilizer, cement, iron, steel, and ceramics sectors, due to their heavy reliance on natural gas as a primary energy source. (Al Borsa)

The Egyptian government has completed disbursing the first 50% cash tranche of the new export rebate program for shipments up to June 2024, the minister of finance said. A total of 601 exporting companies have received EGP368m, in addition to the 12 August disbursements. The allocation to the export rebate program doubled y-o-y in FY24/25 to EGP45bn, he added. (Mubasher)

The National Economic Development Narrative announced a set of measures the Ministry of Industry intends to implement to enhance the competitiveness of the industrial sector and increase its ability to attract local and foreign investment over the coming period, up to July 2027, it announced. The plan includes a comprehensive review of the laws and regulations governing industrial activities, the issuance of an integrated incentive strategy, and the proposition of legislation and policies to support exports and deepen the local component in FY25/26. It also includes the establishment of a fund to finance struggling factories, and the implementation of the Ministry of Finance’s initiative to finance the purchase of machinery and equipment for priority industrial sectors. (Hapi Journal)

Chevron signed a deal with state-owned pipeline operator Israel Natural Gas Lines to kickstart construction of the Nitzana natural gas pipeline to transport gas from the Leviathan gas field to Egypt, Chevron said. The Nitzana pipeline route will transport c600 mcf/day of natural gas, once construction finishes in about three years, which would bring Israel’s total export capacity to Egypt to more than 2.2 bcf/day. Gas producer Energean said it plans to send up to 2 bcf/year on Nitzana from its Katlan field offshore Israel, due to start production in 2027. Nitzana would ease an energy crisis in Egypt, which has spent billions of USD on importing LNG and is part of a concerted effort to boost Israeli gas exports to Egypt. (Reuters, NewMed Energy)

The Egyptian government plans to launch its first tender for some four renewables-powered water desalination plants under the Public-Private Partnership (PPP) framework in December, according to a government source. Some 17 technically qualified consortia are interested in these projects, the sources added. (Enterprise)

The Egyptian government awarded the private sector the construction and operation rights of five new power transformer stations, with total investments close to EGP18bn, as part of a plan to reduce the burden on the general budget and enhance the efficiency of the national grid, and expand the private sector participation, according to an unidentified official source. These companies included Kharafi National, XD-EGEMAC, and Al-Gammal Contracting. The cost of a single station ranges from EGP800m to EGP1.0bn, excluding the costs of interconnection lines, he explained. (Al Borsa)

Egyptian National Railways (ENR) paid USD23m to the US-based company PRL, as part of a deal aimed at increasing the authority’s capacity to increase traction and operate new trips, according to unidentified sources close to the matter. (Al Borsa)

The National Bank of Egypt (NBE)’s FY24 net income increased c89% y-o-y to EGP133bn, it announced. The bank’s total client deposits reached EGP5trn, c33% higher y-o-y, and the loan portfolio reached EGP948bn, c64% higher y-o-y. (Mubasher)

The Egyptian government is preparing a bundle of incentives to attract more pharma sector investments, according to unidentified industry sources. The plan includes measures to resolve long-standing issues like rigid pricing, the high cost of drug registration, and the sector’s reliance on imported active ingredients. The incentives package will include a more flexible pricing mechanism that balances sector profitability with the state’s strategic oversight of medicine prices, the sources added. The new pricing framework would be overseen by a specialist committee working alongside the Egyptian Drug Authority (EDA), they added. (Enterprise)

Egypt’s National Authority for Military Production signed a memorandum of understanding (MOU) with Japan-based Mizuha, specializing in the research, development, and manufacture of atmospheric water generators, creating drinking water from air moisture using silver ion sterilization and ion exchange technology, to establish a 500-liter/day water generation station that will be manufactured at the authority, the Egyptian Cabinet announced. The two sides have already manufactured a water-generating device from air that produces 16 liters/day of water. (Egyptian Cabinet)

Egypt’s National Telecom Regulatory Authority (NTRA) and other government entities are working to vacate and auction some 2,600 MHz of additional frequencies to the four mobile operators in the local market to allow them to deploy their 5G services, according to unidentified sources familiar with the matter. (Al Mal)

The Egyptian government sold yesterday 3-month T-bills worth EGP60.1bn, with a bid-to-cover ratio of 1.49x, at an average yield of 27.094%, up from 26.911% previously, and 9-month T-bills worth EGP23.9bn, with a bid-to-cover ratio of 2.68x, at an average yield of 26.304%, slightly up from 26.158% previously, according to the Central Bank of Egypt’s (CBE) data. (CBE)

Company news

Orascom Construction (ORAS EY, ORAS DH) | OCI N.V. (OCI NA): OCI Global and Orascom Construction PLC announced that they are pursuing a potential merger (the combination), according to a joint release. The combination would establish a scalable infrastructure and investment platform anchored in Abu Dhabi, with global reach. OCI and Orascom Construction are exploring a structure whereby Orascom Construction would be the acquiring ADGM-incorporated and ADX-primary listed entity. Subject to ongoing negotiations on the structure of the potential Combination, OCI shareholders would receive new Orascom Construction shares at a ratio to be determined after completion of reciprocal due diligence and relative valuation. OCI would then subsequently be liquidated and delisted from Euronext Amsterdam. If a transaction can be agreed and approved by the boards of the two companies, it will be submitted to shareholders of both companies, and for regulatory approvals from the relevant authorities. Specifically, the combination would offer the following benefits: (1) complementary strengths; the combination will bring together Orascom Construction’s world-class execution capabilities, supported by a USD14bn backlog, deep industry expertise in infrastructure, and multi-decade delivery of complex projects and concessions primarily in the US, the GCC, Egypt, Europe and select emerging markets — and OCI’s institutional investment platform, transactional expertise, and proven track record of disciplined capital allocation; (2) strong balance sheet: the combination will unite and enhance the companies’ financial strength, consolidating substantial capital resources and funding capabilities. This strengthened platform will facilitate investment in large-scale infrastructure opportunities through multiple channels, including equity, credit, and operation and maintenance participation, while leveraging Orascom Construction’s established experience in the space. Together, these attributes position the combination to unlock a new phase of growth; (3) infrastructure track record: the combination will provide a globally diversified platform from which to leverage Orascom Construction’s long-standing track record and access to an infrastructure opportunities pipeline spanning multiple industries including digital, aviation, transportation, power, and water, as well as leadership credentials in delivering landmark projects such as U.S. data centers, and other notable industrial and infrastructure investments. (Company release, Bloomberg)
Our comment: Over the past two years, OCI N.V. has completed a sequence of transformational disposals. In December 2023, it agreed to sell Iowa Fertilizer Company (IFCo) to Koch Ag & Energy Solutions, LLC for USD3.6bn, a transaction completed in August 2024. In the same month, OCI announced the sale of its controlling 50%+ stake in Fertiglobe plc to Abu Dhabi National Oil Company (ADNOC) for USD3.62bn, which closed in October 2024. In August 2024, OCI signed an agreement to divest its Beaumont Clean Ammonia Project in Texas to Woodside Energy for USD2.35bn, closing in September 2024. Subsequently, in September 2024, OCI announced the divestment of its global methanol business (OCI Methanol Group) to Methanex Corporation, valued at USD1.6bn (USD1.3bn cash plus 9.9 m Methanex shares, representing a 12.9% equity stake), which closed in June 2025. In aggregate, these disposals generated USD 11-12 billion in gross proceeds, of which USD7bn has been distributed to shareholders, while leverage was materially reduced. Strategically, OCI has effectively exited cyclical, asset-heavy fertilizers and chemicals to reposition itself as an investment platform, with credibility in value realization and disciplined capital allocation. What remains in OCI are its European Nitrogen operations in the Netherlands, its 12.9% equity stake in Methanex, and a portfolio of marketable securities.  For Orascom Construction, integrating OCI’s residual assets, cash, and investment culture can be transformational. ORAS’s main challenge has been the cyclicality and thin margins of EPC contracting, despite a USD14bn backlog and strong U.S. presence in data centers and aviation. By absorbing OCI N.V.’s capital base and investment discipline, ORAS gains the funding capacity and credibility to scale into concessions, recurring O&M, and capital-backed infrastructure investments, particularly in the U.S. and GCC. This would shift ORAS’s equity story toward a global infrastructure investment platform anchored in Abu Dhabi, with a potentially more stable earnings profile and scope for re-rating closer to infrastructure peers. The key merger challenges include governance alignment, clarity on capital allocation policies, and discipline in deploying capital into infrastructure projects that deliver recurring, contracted cash flows. If these are managed successfully, the transaction could mark ORAS’s transition into a capital-rich, globally credible infrastructure player, leveraging its proven execution capability and OCI’s financial track record. Management has indicated that it aims to finalize the merger swiftly, and we believe completion could come as early as 1Q26.
EFG Holding (HRHO EY): Shareholders at the company’s AGM and EGM approved the proposed dividends of EGP37.3m for its employee stock ownership program (ESOP), reducing its paid-in capital by EGP118m to EGP7.18bn through canceling 33.7m treasury shares and amending articles six and seven of incorporation, it announced. (EGX)

Egypt Kuwait Holding (EKHO EY, EKHOA EY, ELHOLDIN KK): Shareholders at the company’s EGM approved amending Article Two of incorporation, entailing changing its name to Valmore Holding, it announced. (Mubasher)

National Printing Company (NAPR EY): The company is planning to invest up to USD20m to boost its capacity by c20%, grow exports to c45% of output, and keep the option open for a future primary issuance, its CEO said. (Enterprise)

Naeem Holding (NAHO EY): The company will continue to buy the remaining 9.77m treasury shares from its previous 10m buyback program starting today until 21 October, it announced. (Mubasher)

Egypt Aluminum (EGAL EY): Shareholders at the company’s AGM approved the proposed FY24/25 DPS of EGP8.00, it announced. (EGX)

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Company news

Ooredoo (ORDS QD): The company disposed of a 6% equity interest in Meeza to certain funds managed by Fiera Capital (UK) at the prevailing market price, it announced. (Bloomberg)

Saudi Arabia

Company news

Alujain Corp (ALCO AB Equity): The company’s board recommended a 3Q25 DPS of SAR0.75, it announced. (Bloomberg)

Sahara International Petrochemical Company (Sipchem) (SIPCHEM AB): The company began the turnaround maintenance of its unit, International Methanol Company (IMC), on 21 September for 17 days, according to a statement. (Bloomberg)