Regional conflict threatens Egypt's stability 🧨

Hey friends — hope your weekend was calmer than the mood across the Middle East.

Israel and Iran’s escalating conflict, sparked by Israel, has reignited regional tensions — and Egypt is among the many countries likely to feel the heat from the growing instability.

Dive into this week’s roundup to unpack what this all means for Egypt, plus more key stories from the past seven days.

• Egypt reacts to Iran-Israel 🧨

• Red Sea land on offer 🏝️

• GEM opening delayed ⏳

• China removes tariffs on Africa 🤝

ISRAEL | IRAN | REGIONAL CONFLICT
EGYPT CONDEMNS ISRAELI STRIKE ON IRAN, WARNS OF ‘WIDESPREAD CHAOS’ IN THE REGION

Egypt sharply condemned Israel’s military attack on Iran, calling it a blatant violation of international law and a dangerous escalation that risks dragging the region into full-blown chaos.

Strong words from Cairo: Egypt’s Foreign Ministry said the airstrikes — which hit Tehran and reportedly killed top Iranian officers — pose a direct threat to regional and global peace and security. It warned that such “unjustified acts” would only deepen the crisis and “gravely endanger” the resources and stability of the region.

Diplomatic push: In a series of phone calls, Foreign Minister Badr Abdelatty discussed the aftermath of the Israeli attack with his Iranian counterpart Abbas Araghchi and several Arab foreign ministers. The conversations focused on the “unjustified and irresponsible” Israeli escalation, which Egypt said would have serious consequences for the region’s stability and the livelihoods of its people.

No to war, yes to peace: Egypt reaffirmed its long-standing position that there’s no military solution to regional conflicts, only political ones. “The arrogance of power will not bring security to any state in the region, including Israel,” the ministry said. True peace, Cairo stressed, can only come through respecting state sovereignty, ending occupation, and working toward justice.

Some context: On 13 June, Israel launched airstrikes across Iran targeting nuclear and military sites, including Tehran and the Natanz facility. Iran reported the killing of top IRGC commander Hossein Salami and other officials, with unverified civilian casualties. Israel said the strikes aimed to “roll back the uranium threat,” while Iran retaliated with over 100 drones—all intercepted, according to Israel. The UN, Egypt, and regional powers urged restraint amid fears of a wider conflict.

FOREIGN DIRECT INVESTMENT | RED SEA | LAND DEAL
EGYPT ALLOCATES RED SEA LAND FOR FOREIGN INVESTMENT

As part of its ongoing push to ease economic pressures and trim public debt, Egypt is allocating a 174 square kilometer plot on the Red Sea coast to the Finance Ministry. The land will be used to back upcoming sukuk issuances —Sharia-compliant financial instruments that give investors ownership in real assets rather than debt obligations like traditional bonds.

Some déjà vu: The move echoes last year’s USD 35 billion (EGP 1 trillion) deal with the UAE to develop a similar-sized stretch along the Mediterranean known as Ras El-Hikma. Since then, Egypt has been pursuing more high-stakes investment partnerships—tapping into interest from Saudi Arabia, Qatar, and Kuwait.

What’s the plan? While the government hasn’t revealed exact details for how the land will be used, it’s likely to serve as part of the asset pool supporting a planned USD 2 billion (EGP 99 billion) sukuk issuance in 2025. Finance Minister Ahmed Kouchouk framed it as part of a broader effort to “innovate” out of the crisis.

Why it matters: Sukuks have become an increasingly popular tool for attracting diversified investors, particularly from the Gulf. Egypt hopes this financial engineering can help stabilize its books — and fast.

The backdrop: According to the latest data, Egypt’s economic landscape remains shaky. Inflation has surged to reaching 16.8 percent in May, up from 13.9 percent in April. While the Ras El-Hikma mega-deal offered respite, economic conditions still remain unstable, especially with rising energy demands during the country’s scorching summer season, and regional tensions escalating in parallel.

GRAND EGYPTIAN MUSEUM | TOURISM
GRAND EGYPTIAN MUSEUM OPENING DELAYED DUE TO REGIONAL CONFLICTS

The long-awaited opening of the Grand Egyptian Museum (GEM) has been pushed back, again. Prime Minister Mostafa Madbouly announced the postponement during a press conference, citing the ongoing instability in the region.

What was planned: The GEM was originally set to open on 3 July, with a three-day celebration expected to draw top officials from around the globe.

Why the delay? Madbouly said the government is factoring in the escalating regional tensions, which he warned are likely to continue and evolve in the coming period. Egypt is taking a cautious, wait-and-see approach before hosting a major international event.

Also on the mic: Madbouly used the presser to highlight a jump in Egypt’s natural gas reserves, saying they’ve doubled since last year—but he still urged citizens to conserve electricity, given the uncertain times.

“We’re all in the same boat,” he said, asking the public to stay mindful of power use as Egypt braces for any potential regional escalation.

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CHINA | TRADE | TARIFFS
EGYPT SET TO GAIN FROM CHINA CUTTING TARIFFS FOR AFRICAN EXPORTS

Egypt and other African exporters are getting easier access to China’s massive consumer market. Beijing announced this week that it will drop import tariffs on a wider range of goods from African countries—including middle-income ones like Egypt, Nigeria, and Kenya.

What’s in the deal? The policy, announced during a ministerial review in Changsha, builds on commitments made at last year’s Beijing summit. China pledged additional support for least developed countries (LDCs) like Mali and Tanzania — such as training and marketing — but the headline is that duty-free access is now being extended to stronger manufacturing nations.

Why it matters: This is a big step forward for African nations with competitive industries. Tariffs were a major obstacle, making many African products more expensive in China compared to alternatives. With that barrier removed, Egypt could find new opportunities in textiles, processed food, electronics, and other value-added exports.

Some context: China-Africa trade has been growing — but heavily tilted in Beijing’s favor, with a USD 62 billion trade surplus in 2023. Egypt is one of the African countries that experience a significant trade deficit with China. In 2023, Egypt's imports from China were around USD 12.9 billion, while its exports to China were only about USD 909 million.