AGP Executive Report

IMF Review on Egypt: The IMF has added Egypt to its Executive Board agenda for Thursday to consider the seventh review under the EFF and the second review under the FSFF, paving the way for about $1.6bn in tranche disbursements. Energy & Gas Links: TotalEnergies and Eni have approved the final investment decision for the Cronos gas field off Cyprus, targeting 2028 production and sending gas to Egypt’s Damietta terminal for LNG exports. Gas Deal Denial: An Egyptian government source denied reports of a new natural gas deal with Israel worth up to $20bn, saying any claims are incorrect and that a detailed statement will follow. Tourism & Real Estate Push: Marriott signed deals with Misr Italia Properties and People & Places for nine hospitality projects in Egypt, adding 1,500+ rooms and branded residences across key destinations. Local Industry & Health Tech: Egypt’s first integrated rapid-test manufacturing plant opened in Ismailia, aiming to cut import reliance and save about $30m annually. Rural Jobs Plan: Egypt unveiled a countryside-focused job creation strategy to curb youth migration, with tailored projects ranging from textiles and food to medicinal and aromatic plants.

Investment Climate & Regulation: GAFI is preparing to launch a unified Investor Complaints Platform to let investors submit, track and rate complaints with clear response timeframes, aiming to boost transparency and benchmark Egypt’s investment ecosystem. Green Finance & Infrastructure: Egypt implemented about EGP 215.5bn in green public investments in FY2024/25, led by green transport (71.5%), with 87% aimed at climate mitigation. Tech & Outsourcing Jobs: Konecta opened a regional HQ and a $100m generative AI centre in New Cairo, targeting growth from 800 staff to about 3,000 by end-2028. Trade & Industry: Egypt’s apparel exports rose 15% in H1 2026 to $1.775bn, with June exports up 47% to $355m. Energy & Markets: Oil slid to a two-week low as hopes grew for easing US-Iran tensions, while Egypt’s Suez-area risk remains in focus. Regional Diplomacy: Egypt pushed for urgent Gaza aid and faster reconstruction at the UN Security Council, urging crossings be opened without obstacles.

Energy & Trade Security: Mediators say progress is being made to restart US-Iran talks and avert wider war, after a multi-day pause in attacks—while Red Sea risks keep reshaping shipping routes and oil flows, including tankers diverting to Egypt. Oil Pricing in Egypt: Saudi Aramco is considering a new pricing mechanism for crude loaded from Egypt’s Sidi Kerir for Asia to reflect higher freight costs after rerouting via Egypt’s Suez-Mediterranean pipeline. Gas-to-LNG Deal: Eni and TotalEnergies have approved the Cronos gas field offshore Cyprus, with gas to be piped to Egypt for LNG at Damietta—targeting first production in 2028. Egypt Exports: Egypt shipped 165,000 tonnes of food products via 3,250 consignments in the week of July 18–24, led by strawberries, onions and citrus. Power Infrastructure: Indian Bajel Projects won a $40m-plus contract to build parts of Egypt’s 500kV electricity transmission network. Markets & Policy: Egypt’s pound strengthened as the dollar and euro eased; EGX30 extended losses as foreign investors turned net buyers. Business & Finance: Fertiglobe reported improved Q2 margins and lower net debt, while Misr Life Insurance is set for EGX listing before year-end. Sports Business: Mohamed Salah’s Besiktas talks reportedly collapsed over financial/image-right demands, leaving his next move uncertain. Archaeology & Heritage: Egypt uncovered a Late/Greco-Roman funerary complex at Quesna with 560 ushabtis and pottery linked to Rhodes.

Gaza Stabilization Push: Israel approved principles for the entry of an International Stabilization Force into Gaza, keeping the “Yellow Line” under IDF control and setting the stage for reconstruction under a technocratic committee. Central Banking & Tech: The Central Bank of Egypt hosted Bank of Ghana delegations to exchange know-how on AI, digital transformation and cybersecurity, as Egypt deepens pan-African financial cooperation. Egypt’s Macro Outlook: A new assessment says Egypt’s Q1 growth accelerated to 5.0% y/y, with inflation easing, but external shocks and regional tensions are still pressuring sentiment, capital flows and the current account. Digital Commerce Funding: Yango Ventures backed Egypt’s Fincart with a $2.8m seed round to expand AI-powered e-commerce operations across MENA and Africa. Trade & Shipping Risk: With Red Sea disruptions tied to Houthis, reports point to higher crude flows via Egypt’s SUMED pipeline as Saudi export routes face pressure. Business & Markets: EGX sentiment remains soft as foreign investors turned net buyers, while Egypt’s banking sector continues to expand services and partnerships.

Egypt Economic Restructuring: President Sisi ratified a law to overhaul the military-linked “Future of Egypt” into a new presidential economic authority, expanding its role in wheat imports, lakes and fisheries, the Egyptian Commodities Exchange, and new sectors like luxury housing, renewables and infant formula. Oil & Energy Output: Egypt pushed crude production to its highest level in nearly two years, helped by settling dues to foreign partners and lifting refinery operating rates to around 80%, boosting petroleum exports to over 2.3m tons in H1 2026. Telecom & Finance Growth: Vodacom’s Safaricom deal is now effective, and the group upgraded targets; Egypt stood out with 32.8% service revenue growth in local currency and a surge in financial services revenue. Trade & Regional Risk: With US-Iran strikes paused for a second day, oil prices eased, but shipping and chokepoint risks remain a live issue for Egypt’s import bill and energy security. Tourism Investment: Sharm el-Sheikh is seeing fresh hotel projects worth nearly $1.1bn, led by Egyptian, British and Kuwaiti capital, as capacity constraints and Gulf demand pull investment forward.

Energy & Trade: Egypt’s petroleum exports surged to $2.3bn in H1 2026 on 2.3m tonnes, as refinery output and utilization climbed, with Cairo pushing downstream expansion to lift foreign-currency earnings. FX & Markets: The Egyptian pound strengthened versus both the dollar and euro, supported by higher remittances and rising net international reserves, while EGX30 slipped 0.95% as foreign investors stayed net buyers. State-Owned Reform & Privatization: Prime Minister Madbouly reviewed progress on restructuring state-owned enterprises and moving ahead with a reduced-state-ownership plan to expand private-sector participation. Renewables & Power Links: Egypt and the UK discussed expanding renewable energy cooperation, grid modernization and battery storage, with a target to raise renewables’ share to 45% by 2028. Education & Skills: Egypt signed agreements with Italy to launch 100 Applied Technology Schools across specializations from the next academic year. Real Estate: Alhejaz Gardens targets EGP 15bn in sales over the next year, unveiling new projects in Maadi, New Cairo and Sheikh Zayed City. Sports Business: Mohamed Salah remains a high-profile free agent, with Turkish reports saying Besiktas are in advanced talks. Geopolitics for Shipping: The US paused attacks on Iran for a second straight day as talks on an interim ceasefire continue, keeping Strait of Hormuz shipping risk in focus.

Red Sea Risk for Egypt’s Trade: Houthi attacks on Saudi oil and shipping are escalating after strikes on Hodeida, with analysts warning the Bab el-Mandeb threat could disrupt global flows that feed Egypt’s Suez-linked economy. US-Horn Pivot: The US is deepening engagement with Somalia and Eritrea to protect Red Sea security as Washington tries to prevent a wider regional instability spillover. Egypt Energy Update: Egypt’s crude output hit a two-year peak, while petroleum exports topped 2.3m tonnes in H1 2026, as refinery upgrades lift product exports and cut import pressure. Finance & Metals: Silver prices rose about 2% in Egypt over the past week, tracking a global uptick on investment demand and supply tightness. Policy & Markets: Egypt’s FRA and World Bank-backed capital market reforms are moving forward, including steps tied to short selling rollout, while regional energy projects keep pointing to Egypt’s role as a liquefaction and export hub.

Energy Exports: Egypt’s petroleum exports hit a two-year high at 2.3m tonnes, with officials pointing to stronger refinery output and reduced imports. Power & Infrastructure: Bajel Projects signed a $40m-plus deal with EETC to build two sections of a 500 kV transmission line, reinforcing Egypt’s high-voltage grid. Automotive Trade: The US and Egypt moved forward on an automotive partnership after Egypt formally accepted US Federal Motor Vehicle Safety Standards, paving the way for more American vehicle and parts exports. Banking & Gold: Maturing high-yield bank certificates are boosting liquidity into Egypt’s gold market, while gold imports surged sharply in H1 2026. Tourism & Environment: Egypt is reviewing about 41 ecotourism investment opportunities in Nabq Nature Reserve in South Sinai, with projects tied to strict biodiversity safeguards. Insurance Regulation: FRA reconstituted an actuarial life tables committee to strengthen how insurers price life products. Geopolitics & Shipping: Egypt reiterated solidarity with Saudi Arabia after Houthi attacks on Aramco facilities, as Red Sea risks keep pressuring regional trade routes.

Red Sea Risk for Egypt’s Trade: Insurance giant Gallagher warned clients to avoid the Red Sea after a tanker it covered was struck by the Houthis, raising fears of a new, longer-term threat to Bab el-Mandeb and the Suez Canal’s revenue stream. US Tariffs on Forced Labour: The U.S. USTR imposed 10%–12.5% Section 301 forced-labour tariffs on 60 economies after the Section 122 global duty expired, a move that could ripple into Egypt’s import costs and supply chains. EU Support for Egypt: The EU is providing €1.5bn support to help Egypt cope with financial pressures, underlining continued external backing for stability. Egypt–Turkey Economic Push: Türkiye’s ambassador said bilateral trade is set to hit a record $9bn by end-2026, with Egypt remaining Türkiye’s biggest African trading partner. Energy & Shipping Watch: Data shows Hormuz crossings steady while Bab el-Mandeb traffic remains active, but tensions keep oil prices near $100+ and keep logistics risk elevated. Tech & Finance: Bain Capital agreed to acquire UK nutraceutical Vitabiotics, including its Africa unit VB Egypt, signaling more cross-border investment into Egypt-linked healthcare brands.

EU Support for Egypt: The European Commission disbursed a €1.5bn macro-financial aid tranche to Egypt, the second payment in a €4bn programme, tied to IMF-aligned reforms and “concrete and credible” steps on democratic mechanisms and human rights. US Tariffs Shockwave: Washington launched sweeping Section 301 tariffs on 60 economies over forced-labour claims, with rates from 10% to 12.5%—a move that also puts Egypt in the tariff crosshairs. Middle East Shipping Stress: Attacks around the Strait of Hormuz and Bab el-Mandeb are rerouting oil shipments via longer routes around Africa, pushing freight costs up and adding weeks to delivery times—an issue that matters for Egypt’s trade through Suez. Oil Prices Jump: Physical crude prices in the Middle East and Europe climbed toward two-month highs near $110 as supply disruptions deepen. Egypt Digital Travel: Egypt plans to pilot a digital visa-on-arrival system at Cairo Airport starting August 1. Egypt Business & Investment: Hong Kong’s TDC plans an Egypt office as it eyes African and Nordic markets; and HSBC’s sale of its Singapore insurance unit to Allianz signals continued reshuffling in regional financial services.

Middle East Energy Shock: US strikes on Iran entered a 13th night as Bahrain sounded sirens and explosions were reported near a US base in Iraq, while Houthis attacked Saudi oil tankers in the Red Sea—pushing Brent back above $100 and raising fresh shipping and Suez-linked risk. Trade & Tariffs: Washington rolled out new forced-labour-related tariffs covering 60 countries, with Egypt listed among the affected partners, adding uncertainty for import costs and supply chains. Egypt Business & Economy: Egypt’s New Capital expansion was highlighted at Capital Forum 2026, with officials citing 39 new cities developed over the past decade and a push for private investment and digital infrastructure. Energy & Infrastructure: Egypt’s energy agenda continues with approvals and production updates, while regional chokepoint stress is driving more pipeline talk that could reshape Red Sea trade flows. Finance/Policy: The US also sanctioned a senior Egyptian Muslim Brotherhood-linked figure in the UK over alleged Hamas funding networks. Sports & Tourism: Egypt is set to feature among teams at Kenya’s 2026 Women’s African Nations Volleyball Championship, underscoring regional sports demand.

Egypt-Russia Economic Push: Egypt and Russia discussed new joint projects, including a logistics corridor for grain and petroleum products and possible seasonal flights to boost tourism, alongside progress on El Dabaa’s second-unit reactor vessel and a Russian industrial zone in the Suez Canal Economic Zone. Red Sea Shockwaves for Energy: Yemen’s Houthis said they attacked two Saudi oil tankers in the Red Sea, raising fears of wider Iran war spillovers and pushing oil back above $100 a barrel, with global shipping and trade at risk. US-Saudi Nuclear Deal Politics: Trump’s comments that Saudi Arabia must normalize ties with Israel via the Abraham Accords add uncertainty to the civilian nuclear pact, stoking concerns of a Middle East arms race. Egypt’s Business & Trade Angle: Cairo-based Afreximbank remains a key funder for African upstream oil independents as Western banks retreat, highlighting Egypt’s role in regional energy finance. Tourism & Travel: Century Cruises announced its first Nile itineraries for 2027, with Cairo-to-Luxor routes and a Red Sea extension to Hurghada. Tech & Identity: A new ID Tech digest highlights identity and biometrics updates, including selfie-based account recovery and mandatory biometric checks in Ghana.

Red Sea Risk: Yemen’s Houthis claimed they struck two Saudi oil tankers, raising fears of a new shipping chokepoint as the US carries out a 12th straight night of strikes on Iran—another reminder that Egypt’s Suez-linked trade can feel global shocks fast. US-Iran Flashpoint: A separate explainer spotlights Washington’s threats to hit Iran’s “Pickaxe Mountain” site near Natanz, underscoring how infrastructure threats are reshaping regional risk. Egypt Plan & Umrah Tech: Egypt’s FY2026/27 economic and social development plan was approved, with growth and investment targets set for the year ahead, while the Rafeeq app rolls out QR-based digital check-ins for Umrah pilgrims. Energy & Trade Deals: Egypt approved oil and gas deals including the Perenco North Sinai project, while Cyprus’ Aphrodite gas partners secured signatures for a MoU to sell recoverable gas to EGAS. Finance & Business: QNB Group updated progress on innovation and resilience, and QNB’s participation in the Arab-German Business Forum signals continued cross-border dealmaking. Automotive & Tourism: Automechanika’s Africa Connect roadshow kept momentum in Dar es Salaam, and Radisson is set to operate a new hotel project in West Cairo’s 6th of October. Markets Context: Reports also flagged the Egyptian pound weakening as dollar and euro rise, alongside an intense heatwave disrupting work and the economy.

Egypt Energy & Trade: Egypt’s parliament approved four oil and gas deals, including Perenco’s North Sinai Al-Fayrouz onshore block, as Cairo looks to lift domestic output amid tighter LNG markets. LNG Procurement: Reuters reports Egypt is in talks with Shell, TotalEnergies and BP (plus traders) for 15–18 LNG cargoes per month over 3–5 years to secure supply and manage a ballooning import bill. Gas Production: Khalda Petroleum started production from the Wanda deep gas well in Egypt’s Western Desert, targeting 40 mmcf/d, supported by a new pipeline to existing facilities. Shipping & Logistics: Alexandria Port hit a record 82m tonnes in FY2025/26, with container traffic up to 2.6m TEUs, as digital systems and infrastructure upgrades boost throughput. Regional Risk to Egypt’s Trade Routes: The Houthis announced a Red Sea shipping blockade against Saudi Arabia, triggering tanker U-turns and raising fears of higher global fuel prices—an issue that directly matters for Suez-linked flows. Tourism & Antiquities: Egypt uncovered a Late-to-Greco-Roman funerary unit at Tell Quesna, including 560 ushabti figurines and imported Rhodes pottery. Cyprus-Egypt Gas Link: Cyprus signed an MoU for Aphrodite gas sales to Egypt, with a final supply deal expected next.

North Coast Tourism Deal: Accor and Trust Contracting signed an agreement to develop an ibis North Coast Sidi Kerir hotel with 200 keys, targeting a Q4 2029 opening and betting on Egypt’s push to turn the North Coast into a year-round destination. Energy & Infrastructure Diplomacy: Egypt is accelerating nuclear cooperation with Russia’s Rosatom for the al-Dabaa plant, aiming to cut fuel costs and diversify power supply as global energy prices stay volatile. Healthcare M&A: Elevate Capital and the Moharram family agreed to buy 100% of Nile Radiology and Labs for about $19.5m, expanding Elevate’s integrated diagnostics-to-outpatient platform. Finance & Business Climate: Egypt’s CIB reported H1 2026 consolidated net profit of EGP 39.3bn (+18% y/y), while the central bank data points to easing urban inflation to 14.3% in June. Red Sea Trade Risk: With Houthis warning of a blockade, multiple Saudi crude tankers reportedly rerouted toward the Suez Canal, raising fresh uncertainty for regional shipping and oil flows. Tech Partnership: The US Embassy in Cairo hosted an AI forum to expand Egypt technology partnership, as the IMF also flags AI’s growth potential for Africa hinges on power, internet and skills.

Banking Results: Commercial International Bank (CIB) reported H1 2026 consolidated net profit of EGP 39.3bn, up 18% year-on-year, helped by easing inflation and a stronger pound, with local-currency deposits rising sharply. Youth & Jobs: Egypt is moving to launch a Youth Economy initiative to boost young people’s participation in the economy, using governorate-level data to target opportunities. Healthcare Cooperation: Egypt received over 21 tonnes of French medical aid for hospitals treating Gaza evacuees, while Cairo and Paris discussed expanding cooperation under Egypt’s universal health insurance. Entrepreneurship Push: Egypt advanced an initiative aimed at boosting entrepreneurship and youth involvement in economic activity. Digital Payments: Paymob and UnionPay expanded digital payment acceptance across Egypt, widening options for card and cross-border payments. Energy & Trade Risk: A Houthi blockade threat around Bab el-Mandeb raised fears for Red Sea shipping and oil flows—an issue tightly linked to Egypt’s Suez Canal trade corridor. Regional Diplomacy: Mediators including Qatar and Egypt are pressing the US and Iran toward a 10-day truce to reopen Strait of Hormuz and reduce disruption to global shipping. Aviation Deal: Maldives and Ethiopia signed an air services agreement, with Egypt listed among African countries already connected via similar frameworks.