How one fire disconnected Egypt 🚫📶

• Telecom building fire disconnects Egypt 🔥

• First Egypt visit for new Chinese Premier 🇨🇳

• Cabinet claps back at UAE businessman allegations 🇦🇪

• Interest rates hold steady 📊

TELECOMMUNICATIONS | NETWORK DISRUPTIONS
CENTRAL TELECOM BUILDING FIRE KNOCKS OUT PHONE AND INTERNET ACROSS EGYPT

What happened: A fire broke out early last week in Ramses Central Building, a major telecom building in Downtown Cairo, tragically killing four, injuring many more, and causing nationwide phone and internet disruptions for a few days.

The fire damaged key data equipment, prompting a power cut and leaving millions without mobile or internet service. Egypt’s national connectivity fell to 62 percent of typical levels.

Where it hit: The blaze began on the seventh floor of the 10-story building as thick smoke was seen rising and firefighters and ambulances rushed to the scene.

Public services were also hit hard: The outage also disrupted major financial services. Reports show that Egyptians were unable to use credit or debit cards at shops, restaurants, and other commercial services, while ATM machines across the country were out of service.

The fire’s impact was so widespread that all banks and the Egyptian Stock Exchange temporarily suspended services the following day until connectivity was restored.

Response: While the fire was brought under control by the afternoon, it reignited days later — though this time, officials were ready and managed to quickly contain it. Restoration efforts are now underway, and services have been fully restored.

But public reaction was far less calm. Many questioned how a single building could cause such a widespread disruption to business and essential services, pointing to a lack of a ‘Plan B’.

In response, Communications and Information Technology Minister Amr Talaat — who was summoned for a parliamentary hearing — explained that while Ramses Central is a key node in the telecom network, it’s not the only one. He said backup plans had been implemented to reroute services through alternative facilities.

He also confirmed that a full technical review is in motion to determine the fire’s cause and introduce safeguards to prevent future disruptions.

CHINA | LI QIANG | DIPLOMATIC VISIT
CHINA’S NEW PREMIER LANDS IN EGYPT FOR FIRST VISIT, MARKING A NEW CHAPTER IN RELATIONS

Chinese Premier Li Qiang touched down in Cairo this week for his first official visit to Egypt — and his first trip to Africa since taking office. The high-level visit marked a new chapter in Egypt-China relations, with both sides pledging deeper economic cooperation and diplomatic coordination amid growing global uncertainty.

Tackling the trade gap: During a meeting on Thursday, Egyptian Prime Minister Mostafa Madbouly called attention to the stark trade imbalance between the two countries. In 2024, China’s exports to Egypt totaled USD 16.8 billion — accounting for 96 percent of the USD 17.378 billion trade volume. Egypt’s exports, on the other hand, made up just 3.3 percent (USD 578 million).

Madbouly urged greater access for Egyptian goods in Chinese markets and invited Chinese industries to localize production in Egypt rather than exporting finished products.

More factories, not just exports: Egypt signaled its readiness to support Chinese firms looking to manufacture locally, offering incentives and infrastructure to turn Egypt into a regional hub for production. Madbouly also highlighted Egypt’s trade agreements with Arab, African, and European markets as added value for Chinese investors.

In response, Qiang reaffirmed China’s commitment to expanding its footprint in Egypt across strategic sectors such as renewable energy, manufacturing, AI, and the digital economy.

The talks concluded with both parties signing multiple joint agreements to boost cooperation, with a focus on technology transfer and industrial localization.

Geopolitics also on the agenda: Beyond trade, the two leaders discussed broader geopolitical developments, including the war in Gaza. Madbouly thanked China for backing Palestinian rights in international forums and emphasized the need to support Gaza’s reconstruction efforts. Both sides stressed the importance of diplomacy and dialogue in resolving conflicts.

70 years of ties ahead: Premier Li Qiang noted that 2024 marks 10 years since Egypt and China upgraded their relationship to a comprehensive strategic partnership — and 2026 will mark 70 years of diplomatic relations. He praised Egypt’s recent development progress and reiterated China’s full readiness to support its growth trajectory.

With China already Egypt’s third-largest global trading partner, the visit reflects Beijing’s continued interest in deepening ties with Africa’s most populous nation. Egypt, in turn, is looking to turn strong political relations into a more balanced and productive economic partnership.

REAL ESTATE | FOREIGN INVESTMENT | AL HABTOOR GROUP
EGYPT DENIES EMIRATI BUSINESS TYCOON’S CLAIMS OVER LAND PRICE CHANGES

The Egyptian government has dismissed claims made by Emirati businessman Khalaf Al Habtoor as “baseless and fabricated,” following his allegation that Prime Minister Mostafa Madbouly intervened to inflate the price of a North Coast beachfront property.

Al Habtoor had told CNN Business earlier this week that he was initially offered a beachfront land for USD 10–12 million, only to later be quoted USD 28–30 million — a tripling he attributed to Madbouly’s alleged involvement.

No official request filed: In an official statement, the cabinet said the relevant land authorities had received no formal acquisition request from Al Habtoor, questioning the logic of the claim.

“Even if the businessman intended to acquire land from private individuals, why would the Prime Minister intervene to set the price?” the statement read.

Rules are clear: The cabinet insisted that land allocations for investment follow “well-defined and transparent” procedures handled solely by the proper authorities, with no involvement from senior officials.

“Egypt welcomes our Emirati brothers — investors and non-investors alike,” cabinet spokesperson Mohamed El-Homsany said, citing successful Emirati projects that have generated strong returns.

Al Habtoor responds: The Emirati tycoon issued a statement of his own in response, praising the Egyptian cabinet’s swift clarification. While standing by the accuracy of what was relayed to him, Al Habtoor described the government’s response as “frank and clear,” calling it a positive reflection of Egypt’s institutional strength and investment transparency.

INTEREST RATES | CENTRAL BANK OF EGYPT
CENTRAL BANK KEEPS INTEREST RATES UNCHANGED AS INFLATION EASES

Egypt’s Central Bank left interest rates as is, signaling confidence in the country’s disinflation path while keeping an eye on global uncertainty.

The Monetary Policy Committee (MPC) kept the overnight deposit rate at 24 percent, lending at 25 percent, and the main operation and discount rates at 24.5 percent.

The data behind the decision: Egypt’s real GDP growth hit 4.8 percent in Q1 2025 and is expected to stay near that level in Q2—double the growth seen a year earlier.

Inflation has also cooled: Headline inflation dropped to 14.9 percent in June from 16.5 percent in Q1, while core inflation fell to 11.4 percent. Monthly inflation even turned negative in June, mainly due to falling food prices.

The CBE’s balancing act: The Central Bank’s main target continues to be supporting an ongoing economic recovery and anchoring inflation expectations, while navigating a shaky global environment marked by commodity price swings, geopolitical risks, and sluggish global growth.

Risks ahead: The CBE cautioned that fiscal reforms — like value-added tax (VAT) changes and adjustments to administered prices — could impact inflation in the coming months. However, it expects inflation to hover around current levels through 2025 and decline gradually in 2026.

The Central Bank also reaffirmed its inflation target of 7 percent (± two percent) by Q4 2026 and said it’s ready to adjust policy as needed.