3,000-Year-Old ‘Golden City’ Unearthed in Egypt Stuns Archaeologists and Tourists Alike

Egypt Targets $1.5 B Sukuk as Private Capital Surge Redraws Economic Map Cairo – Egypt is accelerating its return to international debt markets, preparing a $1.5 billion dual-tranche sukuk sale on 7 October 2025 that has already drawn indications of interest exceeding $9 billion from Gulf and Asian investors. The planned Islamic bond is Egypt’s second since a landmark debut in 2023 and comes on the heels of sweeping reforms that have tilted the balance of new investment toward the private sector for the first time in a decade. Officials aim to lock in fresh hard-currency inflows before year-end to ease pressure on foreign-exchange reserves and finance an ambitious pipeline of megaprojects. Private Sector Ascendant Data from the Ministry of Planning show private firms accounting for 52 percent of total fixed-asset investment in fiscal 2024/25, up from 42 percent a year earlier. Analysts attribute the swing to a lighter regulatory regime, wider access to subsidized land, and the soft launch of Egypt’s Sovereign Fund portfolio, which offers co-investment opportunities in power, logistics and fintech. Smart Cities, Massive Build-Out Real-estate and infrastructure remain core growth engines. Greater Cairo alone has 244,000 housing units across 155 projects, with 30,830 homes scheduled for delivery in 2025—29 percent higher than in 2024, making Egypt the third-largest construction hub in MENA. Flagship smart-city initiatives in the New Administrative Capital and Alamein continue to attract long-term capital from the UAE, Saudi Arabia and China. Why a Sukuk, Why Now? • Investor Base: Sukuk tap a deep pool of Sharia-compliant assets under management, currently valued at over $800 billion globally. • Cost of Funds: Egypt cleared its 2023 issuance at a coupon 55 basis points inside comparable conventional bonds, saving an estimated $18 million annually. • Currency Hedge: Proceeds will back green and social projects with dollar revenues, reducing the need for costly FX swaps. Structure & Timeline – Tranches: Five-year floaters and ten-year fixed-rate notes. – Joint Bookrunners: HSBC, Dubai Islamic Bank, Citi, and Banque Misr. – Pricing: Initial guidance at 100–125 bps over U.S. Treasuries; final spread expected below 95 bps given the oversubscription. – Settlement: 14 October 2025 on Dubai’s Nasdaq Dubai and London Stock Exchange. Macroeconomic Backdrop The issuance follows Egypt’s decision to move the 6 October Victory Day public holiday to 9 October for state employees, giving markets an uninterrupted window for allocation. Inflation eased to 18.7 percent in August, a 14-month low, allowing the Central Bank to keep its key rate at 27.25 percent for the third consecutive meeting. Fitch recently affirmed Egypt’s B rating with a stable outlook, citing progress on the $3 billion IMF program. Market Reaction Emerging-market fund managers see Egypt’s sukuk as a liquidity event that could tighten spreads across African high-yield names. “Cairo is signaling it can fund itself without punitive costs, which is positive for broader EM sentiment,” said Amira El-Naggar, portfolio strategist at First Abu Dhabi Bank. Risks to Watch • Currency Devaluation: A delayed move toward a fully flexible pound could erode returns if the backlog of import bills forces a sudden correction. • Regional Geopolitics: Escalation in Gaza may disrupt Suez Canal traffic, a key hard-currency earner. • Reform Fatigue: Slower privatization could reignite investor concerns about state dominance. Outlook Should the deal price inside 95 bps, analysts expect Egypt to reopen its 2030 conventional bond by December, smoothing its 2026–27 maturity wall. Successful execution would also bolster confidence ahead of a planned $2 billion debut offering of sovereign green sukuk in early 2026. With private capital finally outpacing public spending and a deepening Islamic finance footprint, Egypt appears poised to sustain its investment rebound—provided authorities maintain momentum on fiscal consolidation and exchange-rate flexibility.