An improving economy

• GEM buzz leads to backlash 💎

• $1 billion tire factory from China 🛞

• Why buying smarter doesn't always mean later 🧠

• FX limits increase, signaling stability 💳

• Egypt still supports Palestine, despite Israel gas deal 🇵🇸

GRAND EGYPTIAN MUSEUM | CREATIVE FREEDOM
GEM OPENING BUZZ MEETS BACKLASH AFTER FAN-MADE PROMO LEADS TO ARREST

Egyptian authorities briefly detained Abdelrahman Khaled, a young creator who uploaded an AI-generated promotional video for the Grand Egyptian Museum (GEM). He was questioned over the use of official logos, imagery, and multiple AI-generated celebrities, before being released pending investigation. The timing, a week after of the museum’s November opening announcement, has drawn wide attention.

Government response: Officials stressed the video was unsanctioned and could mislead the public, with state outlets underlining that only official campaigns represent the GEM launch. The arrest also indicated how tightly cultural messaging is measured around major national projects.

Backlash and release: The move sparked criticism from journalists and TV hosts, including Lamees El-Hadidi and Ahmed Moussa, who called for encouraging youth creativity instead of punishing it. Online solidarity campaigns quickly followed, and prosecutors released Khaled shortly after.

On another GEM-related note: The museum will temporarily close its doors from October 15 to November 4 to complete the final stages of preparation ahead of its highly anticipated official opening on the first of November.

CHINA | TIRE FACTORY | AIN SOKHNA
CHINESE TIRE GIANT TO BUILD $1 BILLION FACTORY IN AIN SOKHNA

Chinese tire-making giant Sailun Group will pour USD 1 billion (EGP 48.3 billion) into a new automotive tire plant in the China-Egypt Teda Industrial Zone in Ain Sokhna. Spread across 350k square meters, the project will be developed in three phases, with production kicking off in 2026.

The first phase will produce 3 million passenger car tires and 600k truck and bus tires annually, with full capacity exceeding 10 million tires a year for both local and export markets.

Global heavyweight: Sailun is China’s largest listed tire company by revenue and ranks as the world’s tenth biggest tire brand, according to Brand Finance’s 2025 rankings. The company’s Sokhna facility positions Egypt as a key player in regional tire production, tapping both domestic demand and global export markets.

Tire race in Egypt: Sailun’s megaproject adds to a growing wave of tire investments in Egypt. Organi Group is reviving a EUR 1 billion tire factory in partnership with Concrete Plus, while another Chinese firm is eyeing a USD 360 million factory with the state-owned Arab Organization for Industrialization. Together, these projects are shaping the SCZone into a regional tire hub.

CONSUMER MARKET SHIFTS: WHY EGYPTIANS ARE BUYING SMARTER, NOT LATER

Things have cooled down with Egypt’s economy these past few months. The Egyptian Pound is steadily gaining against the dollar and prices for essential goods have been relatively stable. But while things feel calmer, inflation is still outpacing income growth. That’s pushing many Egyptians to rethink how they shop. Instead of the old wait-and-save mindset, many are choosing to buy what they need now — but in smarter, more manageable ways.

From fridges to phones to family vacations, spending in Egypt is shifting. For many, it’s not just about saving anymore; it’s about protecting their purchasing power in a volatile economy.

Economic pressure reshape consumer habits: A recent report by Alternative Policy Solutions found that many consumers are turning to installment plans not out of preference, but necessity, trying to “meet their needs.” It’s a trade-off: paying a little more over time helps avoid the risk of even steeper prices later.

And the numbers back it up: Consumer finance payment solutions hit EGP 38.1 billion in during H1 2025, compared to EGP 24.19 billion in H1 2024, according to a report from the country’s Financial Regulatory Authority. In simpler terms, more people are seeking consumer finance solutions.

Payment solutions are going mainstream: As alternative payment solutions become more widely available, services like Buy Now, Pay Later (BNPL) — which let people secure goods or services and pay over time — are proving increasingly useful for “smart-now” purchases. A 2025 Egypt Buy Now Pay Later Business and Investment Report shows that BNPL transactions between 2021 and 2024 grew at a 53 percent compound annual rate. The report also forecasts that Egypt’s BNPL market to hit USD 1.67 billion by the end of 2025 and potentially triple by 2030.

Leading fintech’s like Valu helping open payment possibilities for Egyptians. Whether it’s everyday essentials, back-to-school shopping, electronics, appliances, or larger expenses like travel and education, Valu gives users the flexibility to spread their payments over time.

People trust Valu: Recent data shows that Valu saw over 9.2 million transactions in Q1 2025,  that’s 16,000 transactions per day. The average user make 12 purchases a year using flexible payment plans, and rising to 22 when using Valu’s prepaid card. The company now holds a 25 percent market share in Egypt’s consumer finance space and grew 66.5 percent year-on-year in 2024, more than twice the pace of the wider industry.

Buying now can save you more later: With the EGP still finding its balance and import-reliant goods prone to price jumps, many Egyptians have discovered that acting sooner can be the smarter move. A fridge bought today, for example, might be more affordable now than a month later due to inflation. For many, buying now — through payment solutions — could be easier and safer than saving up for it, while trying to catch up to potential price increases.

Smart tool need smart handling: Payment solutions like those offered by Valu can be a helping hand for buying necessities. Urgently need to repair something in your car, or maybe your kid needs a new laptop for the upcoming school year? Thinking smart by exploring payment solutions can help spread out costs without putting day-to-day budgets under strain — when used thoughtfully and safely.

FX LIMITS | CREDIT CARD | SPENDINGS ABROAD
BANKS SIGNAL CONFIDENCE WITH HIGHER DOLLAR LIMITS

Major Egyptian banks have raised the cap for travellers’ cash withdrawals abroad to USD 10,000 (EGP 482,650), aligning with the legal allowance for outbound travelers. The move, led by the National Bank of Egypt (NBE), Banque Misr, and the Commercial International Bank (CIB), marks a sharp jump from the previous limits of USD 2,000–5,000.

Lower fees abroad: Alongside the higher limits, banks are reducing foreign currency markup fees on card transactions. NBE, Banque Misr, and CIB cut fees from 5 percent to 3 percent. The Central Bank also scrapped requirements for customers to prove travel when using cards overseas, easing restrictions first imposed during the dollar crunch.

From shortages to easing: Since 2022, banks had imposed strict caps on foreign card use (sometimes as low as USD 50 per month) to curb dollar outflows amid repeated devaluations of the pound. With stronger dollar inflows in the past year, banks have begun rolling back restrictions, giving travelers and businesses wider access to foreign currency, and signaling a stabilizing economy.

ISRAEL’S WAR ON GAZA | MIDDLE EAST
ISRAEL GAS DEAL WON’T CHANGE EGYPT’S STANCE ON PALESTINE: PM MADBOULY

Egyptian Prime Minister Mostafa Madbouly confirmed on 13 August that the extension of Israel’s natural gas export deal with Egypt until 2040 “will not affect Egypt’s position on the Palestinian cause.” The USD 35 billion (EGP 1 trillion) agreement, announced last week, builds on the 2019 deal that has already delivered 23.5 billion cubic meters of gas to Egypt from Israel.

He added that Egypt’s position on Palestine is “clear and explicit,” highlighting Cairo’s rejection of displacement plans and its hosting of an Arab summit earlier this year to support Gaza’s reconstruction.

Energy strategy: Madbouly emphasized Egypt’s aim to become a regional energy hub, noting that the country imports gas not only from Israel but also from Cyprus, while securing below-market prices that strengthen gas-based industries and economic returns.

Crisis backdrop: The announcement comes amid worsening conditions in Gaza, where UN officials warn of severe shortages in food, medicine, and hospital capacity. Gaza’s Health Ministry reports over 61,700 deaths and more than 154,000 injuries since Israel’s assault began in October 2023.