Saudi Arabia’s Sela, a Public Investment Fund company, and Egypt’s Talaat Moustafa Group (TMG) have launched a strategic consortium to create and manage an integrated entertainment ecosystem and live events in Egypt.

The agreement was launched in the presence of Turki bin Abdulmohsen Alalshikh, Chairman of the Board of Directors of Saudi Arabia’s General Entertainment Authority (GEA).

Under the partnership, Sela will lead the development and operation of live experiences and events, including venue operations, festivals, concerts, and on-ground execution. TMG will act as the destination and community partner, leveraging its real estate assets, hospitality platforms, and large-scale communities across Egypt.

The consortium plans to deliver a range of entertainment and cultural offerings, including concerts, festivals, seasonal events, family experiences, theatre and comedy shows, and sports events. A flagship initiative under the agreement is “The Corridor,” a cross-border entertainment platform connecting Saudi Arabia and Egypt through a curated lineup of cultural and entertainment events.

Sela Managing Director Dr. Rakan Alharthy said the consortium marks a new milestone in the company’s international presence.

“Our entry into Egypt through a strategic consortium of this scale reflects a natural progression in Sela’s regional expansion, building on Saudi expertise that has proven its strength in leading global markets and can now contribute to the wider region’s entertainment landscape,” Alharthy said.

“At Sela, we are driven by a clear vision to redefine experiences by developing destinations, events, and content that leave a lasting impact extending beyond the moment,” he added.

Hisham Talaat Moustafa, Group CEO and Managing Director of Talaat Moustafa Holding Group, said the collaboration aims to drive a qualitative shift across entertainment, culture, arts, and sports in Egypt.

Moustafa said the consortium supports the group’s vision of developing vibrant communities that offer a sustainable quality of life, create added economic value, contribute to recurring revenue growth, and position its urban communities as attractive destinations on the regional and global entertainment tourism map.

The consortium combines Sela’s background in experience design, event management, and content creation with TMG’s capabilities in residential, commercial, and hospitality development.

Founded in 1997 as the first Saudi company accredited by FIFA for athlete representation, Sela has since expanded into sports marketing, live experiences, destination development, and event management. The company has developed and operated destinations including Boulevard City, Boulevard World, Via Riyadh, Jeddah Superdome, and the Jeddah Yacht Club, while expanding into major global cities, including London and Las Vegas.

Talaat Moustafa Group, operating for nearly 55 years, has developed fully integrated cities across Egypt, including Madinaty, Al Rehab, and Noor in East Cairo, and is currently developing SouthMED on Egypt’s North West Coast. The group also holds international projects in Saudi Arabia and Oman. Its hospitality portfolio comprises 16 hotels operated under brands including Four Seasons, Kempinski, Marriott, and Mandarin Oriental, totalling nearly 5,000 rooms and suites and accommodating approximately 1.5m visitors annually.

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The partnership combines Sela’s expertise in experience design, live entertainment, destination development, and content creation with TMG’s extensive capabilities in integrated urban development, hospitality, and destination management. The consortium is expected to contribute to expanding Egypt’s entertainment sector and strengthening its position as a regional hub for live experiences and entertainment tourism.

The announcement reflects the growing momentum of Saudi-Egyptian collaboration across the entertainment, tourism, and investment sectors, while aligning with broader regional ambitions to diversify economies and strengthen cultural industries.

Dr. Rakan Alharthy, Managing Director of Sela, described the consortium as a major milestone in the company’s international expansion strategy.

“At Sela, we are driven by a clear vision to redefine experiences by developing destinations, events, and content that leave a lasting impact extending beyond the moment,” Alharthy said.

He added that Sela has established a strong presence in Saudi Arabia through delivering some of the Kingdom’s largest entertainment and cultural events before expanding into major international markets, including London and Las Vegas.

“Our entry into Egypt through a strategic consortium of this scale reflects a natural progression in Sela’s regional expansion, building on Saudi expertise that has proven its strength in leading global markets and can now contribute to the wider region’s entertainment landscape,” he added.

Hisham Talaat Moustafa, Group CEO and Managing Director of Talaat Moustafa Group, said the collaboration aims to create a transformative shift across Egypt’s entertainment, cultural, artistic, and sports sectors.

He noted that the consortium aligns with TMG’s vision of developing vibrant and sustainable communities that enhance quality of life while generating long-term economic and social value.

Moustafa added that the partnership is also expected to strengthen recurring revenue streams and position TMG’s integrated urban destinations, supported by advanced infrastructure and hospitality offerings, as attractive destinations on the regional and international entertainment tourism map.

Under the agreement, Sela will lead the development and operation of live entertainment experiences and events across Egypt, including venue operations, concerts, festivals, seasonal experiences, and large-scale event execution.

TMG will serve as the destination and community partner, leveraging its extensive real estate portfolio, hospitality assets, and large-scale communities across the Egyptian market.

The consortium plans to introduce a diversified portfolio of entertainment offerings, including concerts, festivals, family entertainment experiences, theater productions, comedy performances, and sports events.

One of the flagship initiatives announced under the partnership is “The Corridor,” a cross-border entertainment platform connecting Saudi Arabia and Egypt through an integrated calendar of curated cultural and entertainment experiences.

The initiative is expected to strengthen entertainment tourism flows between both countries while supporting broader regional cultural exchange and private sector collaboration in the rapidly growing entertainment economy.

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Toyota Egypt Group has officially entered the electric vehicle (EV) market in Egypt for the first time with the launch of two new models: the Toyota bZ4X and the Lexus RZ.

The introduction of the vehicles, announced during an event at the Grand Egyptian Museum, aligns with the state’s emissions reduction targets and marks a new sector for the company after 45 years of domestic operations.

Ahmed Monsef, CEO of Toyota Egypt Group, stated: “We feel great pride in announcing the official entry of our Group into the electric vehicle sector in Egypt, through two models that represent the pinnacle of development from Toyota and Lexus. What distinguishes this launch is its full reliance on authentic Japanese ‘Know-How’, which is the cornerstone that makes our electric vehicles a unique model in precision, quality, and technological innovation. Our historical leadership of more than 45 years is today further strengthened by presenting future solutions that reflect the excellence of Japanese engineering and its ability to set new standards of distinction in the Egyptian market.”

Fumio Iwai, Ambassador of Japan to Egypt, expressed: “The relationship between Japan and Egypt is built on a long history of friendship and cooperation based on mutual respect and a shared vision for progress and innovation. Over the years, we have witnessed numerous examples of this fruitful cooperation across various fields, from major cultural and developmental projects to technology, industry, and sustainability. Today, the launch of these electric models from the heart of the Grand Egyptian Museum stands as a symbol embodying this intersection between the greatness of history and the vision of the future. We value the role played by Toyota Egypt Group in providing advanced and sustainable mobility solutions to the Egyptian market, reflecting the Japanese philosophy based on continuous improvement and innovation.”

Powertrain and Battery System

Both the Toyota bZ4X and Lexus RZ are built on the global e-TNGA platform and feature battery systems manufactured in Japan.

Toyota bZ4X

The Toyota bZ4X is available in two grades: the Sport FWD (Front-Wheel Drive) and the Premier AWD (All-Wheel Drive). Both grades utilise a 73 kWh battery manufactured in Japan through a collaboration between Toyota and Panasonic.

The model supports DC fast charging in 30 minutes, while charging from 20% to 80% takes approximately four and a half hours. It offers a driving range of up to 567 km (WLTP standard). According to the company, real-world testing has shown the vehicle achieves a range close to the declared figures.

Performance specifications include:

• Sport FWD: Features a motor generating 224 horsepower (HP) and 268.6 Nm of torque, with acceleration from 0 to 100 km/h in 7.4 seconds. It is equipped with 18-inch wheels.

• Premier AWD: Delivers a total power of 343 HP through a front motor generating 268.6 Nm and a rear motor generating 169.8 Nm, accelerating from 0 to 100 km/h in 5.1 seconds. It is equipped with 20-inch wheels.

The vehicle includes the X-MODE system for unpaved roads, featuring Multi-Terrain Select and GRIP Control Mode. Safety features include the Toyota Safety Sense 3.0 suite, which comprises advanced driver assistance and braking systems. Toyota provides a guarantee that battery efficiency will be maintained at no less than 70% after 10 years of use.

Lexus RZ

The Lexus RZ is offered in two grades: the Executive e350 (FWD) and the F Sport e550 (AWD). It is powered by a 77 kWh Japanese battery. The model supports AC charging up to 22 kW, enabling a home charging time of approximately three hours, while DC fast charging requires about 30 minutes.

Performance and range specifications include:

• Executive e350 (FWD): Delivers 224 HP with acceleration from 0 to 100 km/h in 7.5 seconds, and a WLTP driving range of 508 km.

• F Sport e550 (AWD): Delivers 408 HP with acceleration from 0 to 100 km/h in 4.4 seconds, and a WLTP driving range of 450 km.

The AWD version features Steer-by-Wire technology with a Yoke-style steering wheel, Interactive Manual Drive for simulated manual gear shifting via paddle controls, and the DIRECT4 system for intelligent torque distribution. The F Sport grade is equipped with 20-inch wheels and wider rear tyres for improved stability.

Interior features include leather and Alcantara materials, a Dynamic Ambient Light system, a 14-inch main display, and a 3D Digital Panoramic Monitor System. Safety is managed through the Lexus Safety Sense 3+ suite, which is designed to reduce driver fatigue and includes:

• Lane Tracing Assist

• Lane Departure Alert

• Dynamic Radar Cruise Control

• Adaptive High Beam System (AHS)

• Blind Spot Monitor (BSM)

• Safe Exit Assist

• Rear Cross Traffic Alert (RCTA)

• Pre-Collision System (PCS)

Emergency Equipment and Service

The new models are equipped with a tyre repair kit (including an air compressor and emergency sealant) alongside Type 2 and Type 1 chargers. A home charger unit is currently included with the vehicles for a limited time.

Toyota Egypt Group provides an 8-year or 160,000 km warranty on the battery, electric motors, and main power unit for both brands. An additional 5-year or 150,000 km warranty is provided for the remaining vehicle components.

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During the launch event, attended by Mostafa Salah, CEO, and Mahmoud Tammam, Vice Chairperson, the company also unveiled updates on its flagship residential project Grounds in New Cairo.

The Grounds development features a diverse mix of two- to four-bedroom apartments, with more than 80% of the site dedicated to green and open spaces, including a central park spanning 11 feddans. International planning firm EDSA has been appointed to design the masterplan.

Salah emphasized that the new headquarters reflects the company’s transition into a new phase of expansion, aiming to consolidate its position in Egypt’s real estate market through a pipeline of integrated communities.

He highlighted the success of the company’s Bridges project in Sheikh Zayed, which achieved EGP 1.5bn in sales within just two and a half months, underscoring strong demand for One of One’s developments.

The company stated that its strategy focuses on delivering integrated residential communities aligned with evolving market demand and modern planning standards.

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LIXIL Corporation reported a 22.9% increase in core earnings to ¥38.5 billion for the fiscal year ending 31 March 2026, driven by improved profitability across both its domestic Japanese and international operations despite a challenging global business environment.

Consolidated revenue for the water and housing products manufacturer rose 0.4% year-on-year to ¥1,510.7 billion. Net profit attributable to owners of the parent reached ¥8.1 billion, an improvement of ¥6.1 billion, supported by the core earnings growth and lower corporate income tax expenses, which offset increased finance costs and other expenses. EBITDA (core earnings plus depreciation and amortisation) increased by ¥7.1 billion to ¥121.6 billion.

“In the fiscal year ending March 2026, we achieved year-on-year growth in both revenue and profit despite the business environment remaining more challenging than anticipated,” LIXIL Chief Executive Officer Kinya Seto said. “Core earnings exceeded our initial forecast. In Japan, the decline in new housing demand was offset by growth in renovation sales, which has been a continuous area of focus, and resulted in higher profits across all segments.”

Seto added: “In our international business, we achieved a significant improvement in core earnings, particularly in Europe and IMEA. Our strategic initiatives, including structural reforms and our shift to high-value-added products, are progressing and steadily yielding results.”

The company’s overall core earnings margin improved by 0.5 percentage points to 2.5%. Total revenue for the Japan business increased by 0.5% to ¥1,023.4 billion, as renovation demand for water products and price optimisation offset the negative impact of declining new housing starts. International business revenue rose 0.3% to ¥520.9 billion, achieving growth through increased sales of fittings and faucets in Europe and expanding markets like the Middle East and India, despite continued weak demand in the U.S. and China.

Segment Performance

Within the company’s business segments, LIXIL Water Technology (LWT) Japan saw revenue increase 2.1% to ¥318.6 billion and core earnings rise 16.8% to ¥23.6 billion. The proportion of revenue from renovation-related sales grew by 1.8 percentage points to 57%.

LWT’s international revenue remained flat year-on-year at ¥492.5 billion, but core earnings jumped 31.2% to ¥21.8 billion due to an improved product mix and sales growth in Europe and the IMEA (India, Middle East, and Africa) region.

By region, European revenue grew 4% and core earnings 15%, driven by robust sales volumes of faucets and flushing systems in key markets including Germany. The IMEA region recorded a 15% revenue increase and a 4.3 times surge in core earnings, led by the GROHE brand’s strong performance, sustained Indian revenue growth, and strong Middle Eastern demand. Asia-Pacific revenue was flat. Americas revenue declined 4% due to a sluggish renovation market, although retail sales recovered and the region achieved core earnings profitability in the single month of March following structural reforms. Chinese revenue dropped 10% amid a continued real estate downturn.

LIXIL Housing Technology (LHT) recorded a marginal 0.3% revenue decrease to ¥525.7 billion, while core earnings increased 2.6% to ¥26.7 billion. Robust renovation sales and price optimisation secured the earnings increase despite lower new housing sales and a surge in aluminium prices.

The Living business, which handles kitchens, vanities, and interior materials, posted a 1.0% revenue increase to ¥207.6 billion and an 8.5% rise in core earnings to ¥7.8 billion.

Strategic Initiatives and Outlook

The company noted the steady adoption of its low-carbon aluminium “PremiAL” and the expansion of the product lineup for “revia,” a circular plastic waste material. LIXIL is also expanding initiatives to build a proprietary ecosystem for recycling aluminium scrap in collaboration with business partners.

“Based on the LIXIL Playbook, which outlines our management direction, we have been building a business foundation resilient to external changes,” Seto stated. “To address geopolitical risks such as the current situation in the Middle East, we are enhancing our agility to respond proactively to changes through the optimization of our supply chain. Furthermore, we have been strategically advancing the development and sales expansion of environmentally friendly and circular products that contribute to improved profitability and mitigate some supply chain risks. These include ‘PremiAL’, a low-carbon aluminum made primarily from scrap aluminum, and ‘revia’, which is made primarily from waste plastic. While the future outlook remains uncertain, we will continue our transformation to strengthen our profitability and achieve sustainable growth.”

For the fiscal year ending March 2027, LIXIL forecasts revenue of ¥1,600 billion, core earnings of ¥45 billion, and net profit of ¥12 billion. The company cautioned that this forecast relies on currently available information and does not incorporate potential financial impacts from heightened Middle East geopolitical risks, supply chain disruptions, soaring crude oil prices, and rising petroleum-based raw material costs, as they are currently difficult to reasonably calculate.

The company maintained its FYE2026 year-end dividend forecast at ¥45 per share. The annual dividend for FYE2027 is expected to remain steady at the previous year’s level of ¥90 per share.

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Speaking at a healthcare supply chain event held on the sidelines of the 79th World Health Assembly in Geneva, Abdel Ghaffar said countries should shift from reactive crisis management to proactive planning to ensure sustainable healthcare services.

According to a statement from Egypt’s Health Ministry, the minister said the COVID-19 pandemic exposed major weaknesses in healthcare supply systems, including excessive reliance on imports, weak local manufacturing and limited real-time data visibility.

He said Egypt faced challenges during the pandemic related to medical imports and price fluctuations but responded with a comprehensive strategy to strengthen resilience.

The strategy was based on three pillars: digital integration through linking more than 5,000 healthcare facilities to a real-time monitoring system, expanding local pharmaceutical production to cover between 85% and 90% of domestic medicine needs, and strengthening regional cooperation.

Abdel Ghaffar said these measures enabled Egypt to maintain essential healthcare services during the pandemic, including intensive care and dialysis services, while also implementing major public health initiatives such as screening 60 million citizens and treating 5.5 million hepatitis C patients.

He added that pharmaceutical security has become a core component of national health security and stressed the importance of reducing external dependence and ensuring continuous access to medical products.

The minister said Egypt’s Drug Authority obtaining WHO Maturity Level 3 status strengthened international confidence in Egyptian pharmaceutical products and reinforced the country’s ambition to become a regional hub for medicine and vaccine production.

He also highlighted Egypt’s unified procurement system, saying it reduced the cost of hepatitis C treatment from $900 to $40 per patient.

Abdel Ghaffar called for stronger international and regional cooperation to build more resilient health systems based on integration, technology and sustainable local manufacturing.

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In a statement, the Ministry of Local Development and Environment said the new system will create a national environmental database for industrial facilities, covering emissions, fuel, water and energy use, waste data and export-related information linked to the European Union’s Carbon Border Adjustment Mechanism (CBAM).

Minister Manal Awad said the platform is designed to simplify registration and reporting procedures for industrial facilities and connect relevant government bodies through one digital portal, including the Egyptian Environmental Affairs Agency, the Ministry of Industry, the Industrial Development Authority and the Ministry of Electricity.

She said the registry would help the government prepare detailed reports on fuel use across industrial sectors, identify non-compliant facilities and track emissions reductions resulting from environmental compliance plans.

The system will also enable authorities to calculate and monitor carbon emissions, including direct emissions from fuel and industrial processes, indirect emissions from electricity consumption and embedded emissions in exported products.

Industry Minister Khaled Hashem said the platform represents an important step toward accelerating the green transition in Egypt’s industrial sector and improving the competitiveness of Egyptian exports amid growing global requirements to reduce carbon emissions.

He said the digital link between the Industrial Development Authority and the environmental regulator marks a shift in industrial and environmental data management through interactive maps and sectoral and geographic analysis to support planning and decision-making.

The ministry said the new industrial environmental registry focuses on reducing emissions inside facilities and production lines, improving water and energy efficiency, and monitoring production inputs, including raw materials and intermediate goods.

Further development phases will link the platform to inspection and violation systems, interactive maps and other government bodies, including the Waste Management Regulatory Authority, the Ministry of Investment and the General Organization for Export and Import Control.

The meeting also discussed preparing a regulatory decision to require industrial facilities to register and update their data regularly, as well as possible incentives for compliant facilities.

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At its previous meeting on 2 April, the committee decided to maintain the overnight deposit rate at 19%, the overnight lending rate at 20%, and both the credit and discount rate and the main operation rate at 19.5%.

In its accompanying statement, the MPC said the decision reflected an assessment of recent inflation developments and outlooks, noting that the path towards achieving its inflation target of 7% (±2%) by the fourth quarter of 2026 faced increasing upside risks. These included the possibility of prolonged regional conflict and stronger-than-expected impacts from fiscal adjustment measures.

Earlier this month, the Central Bank of Egypt reported that monthly core inflation, measured by the bank, slowed to 1.1% in April 2026 from 2% in March, while annual core inflation eased to 13.8% from 14%.

The monthly headline urban consumer price index, published by the Central Agency for Public Mobilization and Statistics (CAPMAS), also rose 1.1% in April, compared with 3.2% in March, while annual urban inflation slowed to 14.9% from 15.2%.

Cautious hold

Mohamed Abdel Aal, a banking expert, said the upcoming MPC meeting comes amid broad debate over the future trajectory of interest rates following a period of sharp regional and international volatility that temporarily reignited inflation concerns before price indicators resumed easing at a faster pace than many analysts had expected.

Abdel Aal said that while some observers believe the central bank could return to raising rates in response to escalating geopolitical risks and higher inflation forecasts in its latest reports, a deeper assessment of economic and monetary indicators suggests that maintaining rates unchanged remains the more likely scenario, alongside a temporary pause in the easing cycle.

“In the current phase, the central bank may prefer a ‘cautious hold’ rather than a return to monetary tightening,” he said.

“At first glance, the latest monetary policy report appears more hawkish after the central bank raised its average inflation forecasts to 16% in 2026 and 12% in 2027, compared with significantly lower earlier estimates,” Abdel Aal added. “The report also highlighted persistent upside risks linked to regional conflict, energy prices, shipping disruptions and the possibility of tighter global financial conditions.”

However, he argued that these factors alone are insufficient to justify another rate increase for three main reasons.

“The first is that the central bank raised expectations, not current realities; and that distinction is important,” he said. “The latest report did not suggest inflation had spiralled out of control, but rather that upside risks could materialise if external shocks persist.”

He noted that recent data showed annual headline inflation slowing to 14.9% and core inflation easing to 13.8%, alongside a clear moderation in monthly inflation readings, indicating that actual inflationary pressures remain less severe than precautionary scenarios imply.

According to Abdel Aal, the second factor is the reassuring signal from core inflation.

“Headline inflation can be affected by temporary factors such as food, energy, transport costs and geopolitical shocks, whereas core inflation – which excludes the most volatile components – is viewed as the clearest measure of entrenched inflationary pressures,” he said.

He added that the decline in monthly core inflation from 2% to 1.1%, and annual core inflation from 14% to 13.8%, suggests Egypt has not yet entered a phase of deeply entrenched inflation, while the transmission of external shocks into broader prices remains relatively contained.

The third factor, he said, is that Egypt’s current monetary policy stance is already highly restrictive.

“Real interest rates in Egypt have become clearly elevated relative to current and expected inflation, particularly after inflation slowed in recent months,” Abdel Aal said. “In addition, the effects of previous tightening cycles have not yet fully materialised due to the lag in monetary policy transmission.”

He explained that the impact of higher interest rates emerges gradually over time and is already reflected in weaker demand, slower consumer credit growth, subdued private-sector activity and a decline in the purchasing managers’ index (PMI), indicating softer domestic demand and reducing the need for further tightening.

Abdel Aal also stressed that the Central Bank of Egypt no longer relies solely on official rate adjustments to absorb liquidity and tighten monetary conditions.

He noted that the central bank has increasingly allowed state-owned and private banks to issue high-yield savings products, helping absorb excess liquidity, support pound-denominated savings, curb dollarisation and speculation, and strengthen the attractiveness of the local currency without direct rate hikes.

“As a result, the central bank has effectively achieved part of the tightening effect through indirect and more flexible savings instruments, at a lower cost to economic activity than repeated official rate increases,” he said.

Despite the recent moderation in inflation, Abdel Aal believes the central bank is unlikely to rush into resuming rate cuts given ongoing external risks.

“The war has not fully ended, foreign portfolio flows remain vulnerable to volatility, and even the US Federal Reserve has not shifted decisively towards easing,” he said. “Cutting rates now could signal greater tolerance for inflation, potentially placing pressure on the exchange rate and affecting foreign inflows.”

He therefore sees the most probable outcome as a “cautious hold”, rather than either renewed tightening or a rapid return to easing.

Abdel Aal also suggested that the central bank could extend the timeframe for achieving its inflation targets.

“This is a significant possibility and perhaps one of the most likely developments in the coming period,” he said. “Given geopolitical shocks, energy price volatility and global economic conditions, the central bank may move towards extending the timeline for achieving inflation targets without materially changing the targets themselves.”

“In light of these factors, current policy appears closer to carefully balancing inflation control with preserving growth and monetary stability,” he added. “Accordingly, the MPC may conclude that maintaining existing monetary conditions is sufficient at this stage.”

Monetary balance and banking sector stability

Shaimaa Wagieh, a banking expert, also expects the Central Bank of Egypt to keep rates unchanged, viewing such a decision as part of a strategy aimed at preserving monetary balance and banking sector stability amid persistent global inflationary pressures and uncertainty in international markets.

Wagieh said maintaining rates reflects an approach based on evaluating the cumulative impact of previous tightening cycles, which raised yields and strengthened the attractiveness of savings products while supporting liquidity stability within the banking sector.

She added that stable rates provide banks with greater flexibility in managing funding costs, particularly following increases in the cost of deposits and savings certificates, which directly affect lending costs and financing conditions.

“The hold also reflects monetary policy’s commitment to balancing inflation control with avoiding additional financing burdens on different economic sectors,” she said, noting that further increases could raise borrowing costs for companies and productive sectors, weighing on expansion, investment and credit demand.

From a banking perspective, Wagieh said stable interest rates support banks’ ability to restructure credit portfolios and manage assets and liabilities more efficiently. They also help preserve money market stability and enable financial institutions to plan cash flows more effectively amid continued challenges linked to exchange rates, global markets and energy prices.

She added that maintaining current yield levels supports the attractiveness of local debt instruments without increasing borrowing costs for the state budget.

According to Wagieh, the current phase remains focused on balancing monetary stability with support for economic activity, while preserving the resilience of the banking sector and its ability to finance different segments of the economy.

Economic developments and geopolitical pressures

Meanwhile, the research department at HC Securities and Investment expects the CBE to leave rates unchanged, citing recent macroeconomic developments and geopolitical risks.

Heba Mounir, the company’s macroeconomics analyst, said regional tensions linked to the US-Israeli war against Iran continue to affect both the global economy and Egypt, although Egypt’s external position and exchange-rate flexibility have helped absorb the impact so far.

“Despite foreign investors withdrawing around $3.2bn in hot money from Egypt’s secondary treasury market between 19 February and the end of April, net foreign reserves increased by a combined $263m during March and April to reach a record $53bn in April,” she said.

At the same time, deposits excluded from official reserves declined by $2.6bn over the same period to $10.8bn, while the banking sector’s net foreign assets fell to $21.3bn in March, largely reflecting foreign outflows from treasury instruments.

This contributed to an approximately 10% depreciation in the Egyptian pound since the start of the year, reaching EGP 52.9 against the US dollar by 15 May, reflecting exchange-rate flexibility.

Mounir also highlighted domestic inflationary pressures, including a roughly 19% increase in diesel, butane gas cylinder and petrol prices in March, followed by higher industrial natural gas prices in May and a 5% increase in wheat prices to $244 per tonne.

“These developments are adding pressure to foreign currency liquidity and, in our view, will contribute to higher inflationary pressures,” she said.

To ease pressure on the local currency and absorb liquidity, several state-owned banks introduced new three-year certificates with yields raised by around 1.25 percentage points to an average of 17.25%, prompting some private banks to offer similar products.

“This represents indirect tightening that could help contain inflationary pressures while supporting pensioners who depend on high-yield certificates,” she added.

Regarding treasury bill yields, Mounir said returns have generally moved higher to preserve attractiveness, with the latest 12-month treasury bill auction yielding 24.4%.

“This reflects a positive real interest rate of 4.57% based on our 12-month inflation estimate of 16%, after deducting a 15% tax for European and American investors,” she said.

“Accordingly, given geopolitical risks and their implications for Egypt’s foreign currency resources, our revised inflation forecasts, the need to preserve the attractiveness of treasury investments and fiscal deficit targets, we expect the MPC to keep rates unchanged tomorrow,” she added.

Inflation concerns remain

A Reuters poll also indicated expectations that the Central Bank of Egypt will leave overnight interest rates unchanged at Thursday’s meeting, amid continued concerns over inflationary pressures linked to the US-Israeli war against Iran.

Fifteen of sixteen economists surveyed expected the MPC to maintain the deposit rate at 19% and the lending rate at 20%, while only one forecast a 100-basis-point increase.

Abu Dhabi Commercial Bank (ADCB) said in a note that real interest rates, which remain elevated at around 5%, provide sufficient room to absorb higher near-term inflation expectations.

The bank added that the relative stability of the Egyptian pound in recent weeks, supported by temporary capital inflows, is likely to help anchor inflation expectations and limit imported inflation pressures.

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The move reflects Egypt’s ongoing efforts to diversify financing instruments, broaden its investor base, and secure sustainable funding sources for development priorities.

In a statement issued on Wednesday, the Ministry of Finance said the new eight-year issuance, carrying a yield of 6.7%, attracted strong interest from international investors, with subscription requests exceeding the targeted issuance size by more than fivefold.

According to the ministry, proceeds from the bond sale will be directed toward financing development projects aimed at improving healthcare and education services, while strengthening investment in human capital.

The ministry added that Egypt is currently repaying more external debt than it is borrowing in an effort to reduce the outstanding external debt of budget-sector entities. It noted that the government is targeting an annual reduction in external debt ranging between $1bn and $2bn.

The statement also highlighted the government’s proactive management of geopolitical tensions and global economic challenges, saying these measures have helped reinforce investor confidence and sustain strong demand for Egyptian debt issuances.

The ministry further noted that maintaining access to stable external development financing sources has contributed to improving market sentiment toward Egypt and supporting confidence among international investors.

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During meetings with Varun Chandra and Minouche Shafik, economic, trade, and investment advisers to the British prime minister, Abdelatty highlighted Egypt’s macro-economic reforms, its “Industry 2030 Strategy”, and a “State Ownership Policy” aimed at empowering the private sector and stabilising the foreign exchange market.

The foreign minister also met with chairmen, chief executives, and representatives of UK investment funds, urging them to capitalise on Egypt’s free trade agreements and opportunities in the Suez Canal Economic Zone. He pointed to the government’s “Golden Licence” programme, which is designed to fast-track strategic projects, as a tool for companies seeking access to Middle Eastern and African markets.

British business representatives expressed interest in exploring new cooperation opportunities and expanding their investments, acknowledging improvements in Egypt’s investment climate.

In a separate meeting with the House of Commons Foreign Affairs Committee, chaired by Emily Thornberry, Abdelatty discussed the upcoming formation of an Egyptian-British friendship group in the Egyptian parliament. Foreign Ministry spokesman Tamim Khalaf stated that Abdelatty expressed a desire for the Speaker of the House of Commons and committee members to visit Egypt to enhance bilateral coordination on both economic investments and ongoing regional challenges.

Addressing broader geopolitical issues during a panel at the Royal Institute of International Affairs (Chatham House), Abdelatty cautioned that regional escalation threatens international shipping and energy markets. He stressed that military solutions will only deepen crises, stating that Cairo is working with regional and international partners to support a US-Iranian negotiation track.

Abdelatty noted that recent visits by President Abdel Fattah el-Sisi to Gulf nations underscored that Gulf security is an integral part of Egypt’s national security, whilst rejecting any violations of Arab states’ sovereignty. He reaffirmed Cairo’s support for national state institutions and political solutions to conflicts in Sudan, Libya, Yemen, Syria, and Lebanon, adding that an independent Palestinian state based on the June 4, 1967 borders, with East Jerusalem as its capital, remains the core of regional stability.

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