The International Monetary Fund (IMF) has expressed strong confidence in Egypt’s ongoing economic reform program, highlighting progress on inflation, growth, and targeted social support. In an interview with “Economy of the East with Bloomberg,” IMF Managing Director Kristalina Georgieva noted that discussions with Egyptian officials are robust ahead of the fifth and sixth reviews of the country’s IMF-supported arrangement. She emphasized that the annual meetings in Washington from October 13 to 18 would be pivotal in reaching a staff-level agreement soon. Georgieva praised key indicators, including inflation falling to 12%, projected economic growth of 4.4%, and well-designed social assistance programs effectively reaching vulnerable populations. n nShe underscored the importance of deepening private sector involvement for long-term sustainability, stating that the focus is not on superficial targets but on structural transformation—fostering entrepreneurship, creating higher-quality jobs, and improving living standards. Georgieva acknowledged Egypt’s potential decision to delay planned state-owned enterprise listings until 2026, a topic discussed during the joint meeting between Gulf Cooperation Council finance ministers and central bank governors with the IMF leadership. n nPrime Minister Mostafa Madbouly confirmed that certain IMF-agreed targets might not be met due to exceptional circumstances, noting these issues are under ongoing discussion, particularly during the upcoming fall meetings. He stressed that decisions on public company offerings are sovereign and may be postponed when market conditions are unfavorable. To date, none of the at least 10 state firms—four linked to the National Service Projects Organization—have been listed, despite initial plans. Only United Bank was partially floated in late 2024, as volatility in domestic and global markets raises concerns over the viability of initial public offerings. n nGovernment spokesperson Mohamed Al-Hamssani reported that the cabinet reviewed progress on listing several military-affiliated companies, including the National Fuel and Derivatives Company, Safi National Production Projects, the National Roads Management Company, Shell Out, and Silo Foods for Food Industries. n nOn the fiscal front, Egypt’s Ministry of Finance exceeded its domestic debt issuance target for the first quarter of the 2025–2026 fiscal year, raising over 3.27 trillion EGP by the end of September—surpassing 103% of the annual goal and 139% of the quarterly target, according to Central Bank data analyzed by Al-Borsa newspaper. The initial quarterly target was 2.36 trillion EGP, the highest in the ministry’s history, while the full-year plan aimed for 3.18 trillion EGP by June 2026. A government source attributed the oversubscription to strong investor confidence, driven by high interest rates. n nTo ease pressure on the local bond market, the ministry is extending maturities and diversifying financing tools, including expanding long-term instruments like domestic sukuk and retail bonds, while also boosting secondary market activity to enhance liquidity and bond attractiveness. Analysts link the recent strengthening of the Egyptian pound against the dollar—averaging 48.6 EGP—to increased foreign investment in government debt instruments. n nDomestic government debt accounted for about 75% of total public debt, reaching 11.1 trillion EGP by June, up 3.5% quarterly, according to the Ministry of Planning and Economic Development. n nInvestment Minister Hassan El-Khatib highlighted the role of public free zones in driving exports and employment. Egypt currently hosts nine public free zones across various governorates, hosting 1,224 projects with capital investments totaling 14.7 billion USD and overall investment costs of 38.7 billion USD. These zones generate around 228,000 direct jobs and contribute approximately 20% of the country’s non-oil exports. El-Khatib described them as successful models offering flexible business environments and comprehensive incentives that support investor expansion, production, and export efficiency. n nDuring a site visit to the Ataka and Adabiya public free zones in New Suez, he noted that the Suez free zone comprises three main sites—Adabiya, Ataka, and Port Tewfik—with 173 active projects, capital of 400 million USD, investment costs exceeding 1 billion USD, and around 5,000 direct jobs. He emphasized that the Suez zone exemplifies the investment appeal of such areas and reflects the government’s ambition to replicate this model nationwide. n nIn other developments, a consortium of five Egyptian firms—including Al-Malkeya Al-Sanaiya, Phosphate Egypt, and Wadi El-Nil for Mineral Wealth—is exploring the establishment of a phosphate fertilizer plant in the Golden Triangle economic zone in Upper Egypt, with an estimated investment of 600 million USD. The initial phase is projected to cost 200 million USD. Phosphate Egypt, Wadi El-Nil, and Al-Nasr for Mining will supply high-quality phosphate from the Sabaeia deposits in Aswan’s Eastern Desert. n nAdditionally, the Economic Zone Authority for Investment announced that seven international consortia have been prequalified to bid on a seawater desalination plant project within the Suez Canal Economic Zone, estimated at 300 million USD. The prequalification round was launched in December. The shortlisted groups include a partnership between Hassan Allam Holding and Keppel, another between Orascom Construction, FCC Aqualia SA, and Toyota Tsusho Corporation, as well as teams led by AMAE Energy with Cox Water SL, Elsewedy Electric with Sacyr Agua SL, ACWA Power (a Saudi joint-stock company), Suez International, and Acciona Agua SA. n nSeparately, an investment consortium comprising France’s Proparco, SPE Capital, and Amethis Direct Investment aims to acquire over 80% of Delta Chemicals for 50 million USD. Meanwhile, Al-Sharqiya National and Capital Agro are investing 25 million USD in a food processing complex, and France’s Voltalia plans a 250 million USD renewable energy plant in Zaafarana. n— news from Economy Plus ME n
— News Original —Economy Plus Newsletter – Sponsored Edition n nHeadlines n n“Finance” exceeds local debt targets by 3.27 trillion EGP in first quarter n n“Al-Malkeya Al-Sanaiya” and “Phosphate Egypt” lead a consortium to establish a $600 million fertilizer company n nSeven international consortia prequalified to compete for desalination plant in Suez Canal Economic Zone n nConsortium plans to acquire 80% of “Delta Chemicals” for $50 million n n“Al-Sharqiya National” and “Capital Agro” invest $25 million in food complex n nFrance’s “Voltalia” to invest $250 million in renewable energy plant at Zaafarana n nMain Story n nIMF: Egypt’s economic program on inflation, growth, and subsidies is progressing very well n nKristalina Georgieva, Managing Director of the IMF, said engagement with Egyptian officials is strong regarding the fifth and sixth reviews of the Fund’s program with Egypt, adding that the annual meetings in Washington from October 13 to 18 will be used productively to reach a staff-level agreement soon. In an interview with “Economy of the East with Bloomberg,” Georgieva expressed optimism about Egypt’s economic performance, noting that parts of the program are progressing very well, including inflation dropping to 12%, growth projected at 4.4%, and well-designed and strongly implemented support for vulnerable groups. n nShe added that in principle, there is recognition that the economy’s future requires stronger private sector participation, explaining: “We are not focused on superficial or formal targets. We are committed to the direction of the path, which means more entrepreneurship, better jobs, and a higher standard of living.” She affirmed understanding of Egypt’s possible decision to postpone planned state company listings to 2026. These remarks came on the sidelines of the joint annual meeting between Gulf Cooperation Council finance and economy ministers and central bank governors with the Fund’s director. n nIn this context, Prime Minister Dr. Mostafa Madbouly said some targets agreed upon with the IMF might not be achieved due to exceptional circumstances, a matter subject to discussion with the Fund, with talks to continue on the sidelines of the upcoming fall meetings. Madbouly added during a press conference after the cabinet meeting last Thursday that state company listings are a national decision, and as a country, Egypt delays them when conditions are unfavorable. n nMohamed Al-Hamssani, official spokesperson for the Presidency of the Council of Ministers, said the meeting reviewed the status of listing procedures for several armed forces companies, including the National Fuel and Derivatives and Services Company, the National Production Projects Company “Safi,” the National Roads Construction and Development and Management Company, “Shell Out,” and Silo Foods for Food Industries. n nEgypt’s plan included listing at least 10 companies this year, including four affiliated with the National Service Projects Authority, but none have been listed so far, with only a stake in United Bank floated at the end of 2024, amid concerns over the impact of local and global market fluctuations on the viability of initial public offerings. n nIn today’s Saudi newsletter n nIMF: Saudi Arabia’s reassessment of spending plans is necessary to improve fiscal efficiency and boost market confidence n nThe IMF affirmed that the flexibility adopted by Saudi authorities in public policies will place the Kingdom in a strong position despite the current dual budget deficit, supported by strong reserves and policy flexibility. n nWe follow in our newsletter many news items; here are the main headlines: n n4.3 billion riyals raised at Riyadh cultural investment conference n nChinese company invests two billion riyals in Saudi cultural sector n nTo subscribe to the Saudi newsletter, click the link n nTop News n nThe Ministry of Finance raised more than the targeted amount from domestic debt issuances in the 2025–2026 fiscal year within three months, exceeding 3.27 trillion EGP by the end of last September, recording about 103% of the annual target and 139% of the quarterly target, according to Central Bank data collected and analyzed by Al-Borsa newspaper. n nThe ministry had targeted selling treasury bills and bonds worth 2.36 trillion EGP in the first quarter, the highest quarterly level in its history, while the annual plan targeted about 3.18 trillion EGP by the end of June 2026. A government source told Al-Borsa that foreign investors’ and commercial banks’ confidence in local debt instruments, driven by high interest rates, contributed to exceeding targets. He explained that “Finance” is working to reduce pressure on the local bond market by extending maturities and diversifying financing tools through expanding long-term instruments such as domestic sukuk and retail bonds, in addition to activating the secondary market to enhance liquidity and bond attractiveness. n nThe source added that the ministry is adopting a plan to enhance tax revenues and maximize returns from underutilized assets, especially lands transferred to its ownership, to offer them to investors, providing additional resources that reduce reliance on borrowing and achieve greater flexibility in managing public debt. Analysts attributed the recent rise in the pound’s exchange rate against the dollar to the increased pace of foreign investment in government debt instruments, contributing to lowering the average dollar price to 48.6 EGP in the first quarter of the current fiscal year. According to data from the Ministry of Planning and Development, domestic government debt accounts for about 75% of total public debt, reaching 11.1 trillion EGP by the end of last June, up 3.5% quarterly. n nHassan El-Khatib, Minister of Investment and Foreign Trade, said Egypt has nine public free zones distributed across various governorates, hosting 1,224 projects with total capital of $14.7 billion and investment costs of $38.7 billion. He added that these zones provide about 228,000 direct job opportunities and contribute about 20% of Egypt’s total non-oil exports. He confirmed that free zones represent a successful model in Egypt’s investment system, offering a flexible business environment and a comprehensive set of incentives and advantages that support investors and grant them the ability to expand, produce, and export efficiently. n nHe explained during a field visit to the Ataka and Adabiya public free zones in New Suez that the public free zone in Suez includes three main locations in Adabiya, Ataka, and Port Tewfik, with 173 projects operating with total capital reaching $400 million, investment costs exceeding $1 billion, and providing about 5,000 direct job opportunities. He pointed out that what is happening on the ground in the Suez free zone reflects the investment attractiveness of these areas, representing a model the state aspires to generalize across all governorates. n nA consortium comprising five Egyptian companies is studying the establishment of a phosphate fertilizer plant in the economic zone of the Golden Triangle in Upper Egypt, with an investment cost reaching $600 million, a government official told the “Economy of the East with Bloomberg” platform. The consortium includes Al-Malkeya Al-Sanaiya, Phosphate Egypt, New Valley for Mineral Wealth, Al-Tifla Al-Zeitia (Wadico), and Al-Nasr for Mining. He explained that the initial cost estimate for the first phase of the project is about $200 million, noting that “Phosphate Egypt,” “Al-Nasr for Mining,” and “Wadico” will supply the required phosphate quantities for the plant from production areas in Sabaeia, Aswan Governorate, in the Eastern Desert, where high-quality phosphate reserves are available. n nAlso, the Economic Zone for Investment Company, affiliated with the Suez Canal Economic Zone, announced the prequalification of seven international consortia and companies to compete for the implementation of a seawater desalination plant project within the economic zone, with an estimated cost of $300 million. Government sources told Al-Borsa newspaper that these consortia were prequalified in the prequalification phase launched in December last year, related to the new desalination plant project. n nThe sources explained that the qualified consortia include “a consortium of Hassan Allam Holding with Keppel,” in addition to “a consortium of Orascom Construction with FCC Aqualia, SA, and Toyota Tsusho Corporation,” and the third consortium includes AMAE Energy with Cox Water, SL. The list also includes “a consortium of Elsewedy Electric with Sacyr Agua, SL,” along with “ACWA Power, a Saudi joint-stock company listed,” in addition to “Suez International,” and “Acciona Agua, SA.” n nMeanwhile, an investment consortium comprising France’s Proparco, “SPE” (SPE Capital), and Amethis Direct Investment intends to acquire a majority stake exceeding 80% in Delta Chemicals for $50 million.
