AGP Executive Report

Economic Outlook: Finance Minister Ahmed Kouchouk says the IMF raised its forecast for Egypt’s 2027 growth to 4.7%, from 4.4%, as the government points to stronger fiscal results and private investment. Logistics: Egypt opened a $13.1 million dry port in Alexandria and approved a 30-year licence for a 652-acre logistics zone in Salloum. Xiamen C&D is also set to develop an Alexandria dry-bulk terminal. Manufacturing: Chinese appliance makers are stepping up investment in Egypt, while sportswear manufacturer H&L Egypt has raised its planned investment in a South Korean factory at West Qantara to $30 million. Agriculture and Food: Egyptian farmed fish has won approval for export to all 27 EU countries, widening access for local producers. Energy and Shipping: Egypt’s oil demand fell 12.3% in the second quarter, with full-year consumption forecast to decline by 130,000 barrels a day. Meanwhile, Suez Canal container traffic has climbed above half its pre-crisis level as shipping lines resume transits. Capital Markets: Nigeria’s Dangote refinery IPO is drawing Egyptian investors, as the company pitches wider African share ownership and expansion plans that include Egypt.

Logistics: Egypt opened the $13.1 million El Amreya dry port in Alexandria and approved a 30-year licence for a 652-acre logistics zone in Salloum. Xiamen C&D is also set to develop an Alexandria dry-bulk terminal. Industrial Investment: Aliko Dangote says Egypt will be part of his planned $50 billion African investment drive, including a proposed 400,000-tonne-a-year detergent-chemical plant. Trade: Egyptian farmed fish has won approval for export to all 27 EU countries, while Suez Canal container traffic has climbed above half its pre-crisis level. Capital and Manufacturing: MNT-Halan opened a $150 million IPO subscription on the Cairo bourse. Elaraby is exploring an automotive-components partnership with South Africa’s Malben, while Chinese appliance firms are increasing investment in Egypt.

Manufacturing: Chinese appliance makers are expanding in Egypt: Midea has established its seventh local factory, and Haier’s second-phase refrigerator and freezer plant is due to open in November. Agri-food: Egyptian farmed fish has won approval for export to all 27 EU countries, opening access to a major premium market. Investment: Dangote plans to invest $10–15 billion in Egypt, while the Egyptian Exchange explores depositary receipts to let local investors buy into his companies and refinery IPO. Logistics: Egypt has approved a new Salloum logistics zone and Sadat dry port company; Alexandria’s EGP 700 million Amreya dry port has opened. Suez Canal container traffic has also climbed above half its pre-crisis level. Energy: Rosatom and Teletech have agreed to localize energy-storage production in Egypt, while Cairo and Riyadh have signed an oil-storage pact.

Industrial Partnerships: Egypt and Belarus are preparing a 2027–28 trade roadmap, with talks covering local assembly of Belarusian agricultural machinery. Energy Investment: Egypt and Saudi Arabia signed a pact to expand oil and gas cooperation, including plans for Saudi crude storage in Egypt; Rosatom and Teletech also agreed to localize energy-storage system production. Projects & Technology: Egypt approved 30 public-private projects worth $771 million, while technology firm FPT opened its first African investment in the country. Logistics: Alexandria’s EGP 700 million Amreya dry port has opened, and plans are advancing for new logistics zones and a Sadat dry port company. Manufacturing & Exports: Egypt is offering 400 ready-to-operate industrial units across 10 governorates. Citrus exports reached 2.4 million tonnes in the 2025–26 season, while the country is targeting a larger share of global date production.

Investment: Egypt approved 30 public-private projects worth EGP41bn ($771m), with some already under way. Logistics: The cabinet approved a 652-acre Salloum logistics zone and a new Sadat dry-port company; the EGP700m Amreya dry port has opened in Alexandria. Energy: Chevron and EGAS are nearing a deal on a $4bn Eastern Mediterranean gas pipeline, while plans advance for a 3,000MW electricity link with Saudi Arabia. Industry: Rosatom and Teletech plan a battery assembly facility in Egypt, and H&L Egypt has raised investment in its West Qantara sportswear factory to $30m. Egypt is also offering 400 ready-to-operate industrial units across 10 governorates. Agriculture: Citrus exports reached 2.4 million tons in the 2025/26 season.

Logistics: Egypt approved a 652-acre logistics zone at Salloum and a new Sadat dry-port company; Alexandria’s EGP 700 million Amreya Dry Port has also opened to ease cargo flows and connect ports with production centres. Investment: Finance Minister Ahmed Kouchouk says investors’ risk assessment of Egypt is at its lowest since 2014. The government is pitching local-currency guarantees for infrastructure projects, while 400 ready-to-operate industrial units are on offer across 10 governorates. Energy: The Egypt–Greece GREGY interconnector, planned to carry 3,000 MW of renewable power, received an international award. Elsewedy Electric’s joint venture also secured a $2.2 billion Saudi power-plant expansion contract. Exports: Egypt’s citrus exports reached 2.4 million tonnes in the 2025/26 season, while officials are updating the dates strategy to expand processing and exports.**

Power & Investment: Elsewedy Electric and China’s Sinohydro secured a $2.2 billion contract to add 2.3 GW to Saudi Arabia’s Rabigh 2 power plant, with operations targeted for 2029. Egypt and Saudi Arabia are also preparing to launch the second phase of their 3,000 MW electricity link, while signing broader energy cooperation agreements. Industrial Expansion: Shandong Electric won civil works for Sailun’s tyre-factory expansion in Suez’s TEDA Industrial Park. H&L Egypt has raised its investment in a South Korean sportswear factory at West Qantara to $30 million. Agriculture & Exports: Egypt’s citrus shipments rose 16% to 2.44 million tonnes in 2025/26, worth $1.34 billion. But higher freight and war-risk insurance costs are squeezing exporters’ margins. Trade & Logistics: Egypt’s agreement with China’s C&D to develop a dry-bulk terminal at Al Max Port adds capacity as regional conflict disrupts shipping and threatens trade routes.

Energy: Chevron and EGAS will invest at least $88 million to explore Egypt’s offshore Lotus block, including two wells and 3D seismic work. Shipping: CMA CGM says it is making the Suez Canal a permanent route; 166 large container ships transited from July to September, up from 16 a year earlier. Manufacturing: Investment in H&L Egypt’s West Qantara sportswear factory has doubled to $30 million. The plant is expected to create 2,000 jobs. Ports: Egypt signed an MoU with China’s Xiamen C&D to develop a dry-bulk terminal at Alexandria’s Al Max Port, linking maritime, rail and road freight. Agribusiness: The Agriculture Ministry and FEI plan to expand rural processing and “Productive Village” models, connecting farmers to markets and creating jobs. Regional Infrastructure: Egypt is backing financing for 36 Nile Basin projects, including hydropower, electricity links and water infrastructure, and was re-elected to chair the Arab electricity council’s executive bureau.

Border Mining Operation: Egypt’s military says it is targeting illegal gold mining near Sudan after a rights group accused Egypt of an airstrike that killed 72 miners; Cairo did not directly address the allegation, and Sudan has ordered an inquiry. Energy Cooperation: Saudi Arabia signed energy cooperation deals with Egypt, Kuwait and Qatar as regional attacks threaten energy infrastructure and shipping. Investment and Industry: Egypt’s Asian tour secured 20 agreements with South Korea, Malaysia and Indonesia; Egypt and Seoul also upgraded ties, signed 12 agreements and launched trade pact talks. Egypt’s 2026 Forum is set to outline manufacturing and private-sector reform targets. Economic Indicators: Egypt recorded a $2.8 billion balance-of-payments surplus in fiscal 2025/26, while core inflation eased to 14.1% in September, despite higher monthly consumer costs. Agriculture: Egypt is targeting more than 10 million tonnes of fresh agricultural exports in 2026.

Asian Investment Push: President Abdel Fattah el-Sisi says his Asian tour secured 20 agreements with South Korea, Malaysia and Indonesia, spanning manufacturing, energy, agriculture and technology. Industrial Partnerships: Egypt and Thailand discussed joint production in rubber, petrochemicals and tyres, with the Suez Canal Economic Zone pitched to investors. External Accounts: Egypt posted a $2.8 billion balance-of-payments surplus in FY2025/26, supported by $18 billion in net FDI and a 29.6% rise in remittances; the current-account deficit nevertheless widened as imports outpaced non-oil exports. Energy and Agriculture: Egypt and Saudi Arabia agreed to expand oil, gas and petrochemicals cooperation, while Cairo targets more than 10 million tonnes of fresh agricultural exports in 2026. Gold Mining: Egypt’s military says it has begun a new phase of operations against illegal mining in the Eastern Desert. Sudan has ordered an inquiry into a deadly strike on miners near the border; claims of Egyptian involvement remain unverified.

Energy: Egypt and Saudi Arabia signed an oil and gas cooperation deal, with wider energy agreements also involving Kuwait and Qatar. Exports: Egypt’s chemical and fertilizer exports to Saudi Arabia jumped 98% to $356 million in the first eight months of 2026. Manufacturing: Semak Pharma plans to double investment in 2027 and expand production in Fayoum. Transport & Infrastructure: Egypt and South Korea are advancing a hydrogen-powered tram project for the New Administrative Capital, while Egypt has committed EGP 57 billion to modernise Sinai’s electricity grid. Trade: Egypt and Indonesia are targeting $5 billion in bilateral trade by 2030 and are working toward an economic partnership agreement.

Energy: Egypt and Saudi Arabia signed a cooperation memorandum covering energy, including petroleum and related fields. Trade and Manufacturing: During President Abdel Fattah el-Sisi’s Indonesia visit, the countries set a $5bn trade target for 2030 and pledged to expand joint manufacturing and investment. Exports: Egyptian chemical and fertiliser exports to Saudi Arabia nearly doubled to $356m in the first eight months of 2026, led by petrochemicals. Investment: The World Bank Group says it has mobilised $6.7bn in private capital for Egypt since FY2022, supporting renewable energy, ports and other projects. Pharmaceuticals: Semak Pharma plans to double investment in 2027 and expand production at its Fayoum facility.

Regional Logistics: Riyadh’s airport strike killed 12, including an Egyptian, and halted flights, underscoring the risks to regional transport and energy links as tensions spread. Trade and Investment: Egypt and Indonesia aim to lift trade above $5 billion by 2030 and promote joint manufacturing; Egypt and Malaysia are also seeking deeper cooperation in semiconductors, electronics, energy, agriculture and pharmaceuticals. Food and Health Industries: Egypt and AUDA-NEPAD agreed on a framework to expand African drug and vaccine production, while a date-processing complex is planned for New Valley. Energy and Infrastructure: Chevron and EGAS signed an $88 million Mediterranean exploration deal, and Egypt is investing EGP 57 billion to modernise Sinai’s electricity grid.**

Malaysia Partnership: Egypt and Malaysia elevated ties to a strategic partnership, targeting cooperation in renewable energy, manufacturing, electronics, agriculture and food processing, with a joint committee due to meet in early 2027. Agro-Processing: Work is advancing on a New Valley date complex spanning 64,000 square metres, with automated processing lines and storage for 20,000 tonnes. Food and Water: Egypt and ICARDA are expanding plans for solar irrigation, desalination and soil management, while a new framework with AUDA-NEPAD aims to grow African medicine and vaccine production. Energy: Egypt and Chevron agreed an $88 million Mediterranean exploration deal; separate plans would route Cypriot gas to Europe through Egypt and Greece. Economic Outlook: Foreign reserves rose $5.9 billion in the first nine months to $57.35 billion. S&P affirmed Egypt’s B/B rating with a stable outlook; urban inflation eased to 13.9% in September, though monthly prices rose 1.3%.

Trade and Investment: Egypt and Malaysia elevated ties to a Strategic Partnership, with cooperation targeting energy, manufacturing, electronics, agriculture and pharmaceuticals. Bilateral trade rose 74.7% this year, albeit from a low base; four agreements cover investment and other areas, and a joint commission is planned for early 2027. Industrial Skills: Egypt aims to expand applied technology schools from 225 to 1,000 by 2030, partnering with companies on curricula, workplace training and job opportunities. Energy: Chevron and EGAS signed an $88 million deal to explore the Mediterranean’s Lotus block as Egypt seeks to raise petroleum output and strengthen supply security. Public Finances: Egypt narrowed its budget deficit to 5.8% of GDP, while the primary surplus climbed to 4.9%.

Trade and Transport: Egypt and South Korea upgraded ties to a strategic partnership, signed 12 agreements and opened talks on a comprehensive trade pact. Cooperation also includes a hydrogen-tram initiative, linking the partnership to transport and clean-energy development. Energy Investment: EGAS and Chevron signed an $88 million exploration deal for the Mediterranean Lotus block as Egypt seeks to raise petroleum output and strengthen supply security. Business Climate: Fitch affirmed Egypt’s B rating with a stable outlook, even as the non-oil sector’s downturn deepened in September, with orders and activity weakening. Finance and Industry: Fintech lender MNT-Halan is backing expansion with securitised debt, while Egyptian-made mobile phone sales fell 20% amid rising prices—a warning sign for local manufacturers.