Will Trump fix Egypt's GERD dispute? 🌊

Hey friends,

Welcome back to a mega-packed edition of the Egypt Weekly Roundup — especially in our Foreign Affairs section, which is US-heavy this week.

There’s also a lot to unpack in Business & Economy, so without further ado, let’s dive right in.

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• Trump to help Egypt with GERD 🇪🇹

• New EU cash arrives 🇪🇺

• Egypt's woodworking capital 🪵

• Making tourism carbon-neutral ♻️

USA | ETHIOPIA | NILE RIVER
FOLLOWING GAZA EFFORTS PRAISE, TRUMP PLEDGES TO RESOLVE GERD SITUATION FOR EGYPT

United States President Donald Trump said Washington is prepared to resume mediation efforts between Egypt and Ethiopia over the Grand Ethiopian Renaissance Dam (GERD) and Nile water sharing, a move he linked to Egypt’s role in mediating the Gaza ceasefire. In a letter to President Abdel Fattah Al-Sisi, Trump praised Cairo’s leadership as steady and constructive amid ongoing regional tensions.

US engagement shift: In unusually direct language for presidential correspondence, Trump affirmed that no state should unilaterally control Nile resources to the detriment of neighbors, highlighting that fair, transparent negotiations could ensure water security for Egypt and Sudan while supporting Ethiopia’s electricity generation needs. 

Regional strategy: The letter was also sent to leaders in Saudi Arabia, the UAE, Sudan, and Ethiopia, suggesting Washington’s intent to widen diplomatic collaboration on Nile talks and broader Middle Eastern stability — underscoring Egypt’s central position in both humanitarian and strategic diplomacy. 

EU | ECONOMIC REFORMS | FINANCING
EU DISBURSES NEW €1BN TO EGYPT UNDER €7.4BN FINANCING DEAL

Egypt has received a second EUR 1 billion tranche from the European Union as part of a wider EUR 7.4 billion macro-financial support package, strengthening the country’s fiscal position amid ongoing economic reforms. The funding is expected to help Egypt extend debt maturities, ease near-term financing pressures, and expand fiscal space for priority spending, including social protection and development programs.

Reform alignment: EU officials said the disbursement reflects progress on economic and structural reforms, including fiscal discipline, governance improvements, and steps to support private-sector-led growth.

Strategic partnership: The tranche forms part of a broader EU-Egypt economic partnership that combines loans, guarantees, and grants aimed at supporting long-term stability and reform momentum, in coordination with Egypt’s IMF-backed program.

EGYPT’S WOODWORKING CAPITAL: WHY DAMIETTA IS MORE RELEVANT THAN EVER IN EGYPT’S REAL ESTATE

In a world racing toward the future, the soul of the past still matters. As Egypt’s skyline fills with modern, Westernized developments, there’s a growing appetite for something more than soulless facades of glass, steel, and grey.

This calls for a revival in architectural heritage — toward authenticity, sustainability, and craft. And when it comes to Egypt, the local scene is more than capable of blending modernity with culture. One specific place has been carving local excellence for generations: Damietta.

A legacy of hands-on mastery: Damietta isn’t just a furniture hub — it’s Egypt’s woodworking capital, where technique is passed down like heirlooms and quality isn’t a luxury, it’s a standard. Whether it’s hand-carved chairs or custom cabinetry, the city’s workshops are powered by craftsmen who blend precision with pride. Wood sourced from Damietta is not only high in quality, but rooted in cultural identity — a counterpoint to the anonymous imports that dominate the global supply chain.

But how do we marry heritage with modernity? As resorts, homes, and commercial projects take shape across the coastline and desert, the materials chosen matter more than ever. Developers who opt for local craftsmen, like in Damietta, are investing in both quality and culture.

One such example is Alarinova’s upcoming resort project: Steigenberger Resort Ayalora, Al Sokhna – a unique coastal project just an hour away from Cairo.

What makes this coastal community different? As buyers and travelers become more conscious of where and how things are made, Egypt’s real estate industry has an opportunity to honor what’s homegrown. By weaving Damietta’s craftsmanship into its spaces, it sets a precedent for how modern developments can stay rooted in heritage — proving that luxury doesn’t have to mean imported, and that the future of design in Egypt can be as local as it is aspirational.

If this is the kind of place you want to spend time in, it might be worth keeping an eye on what Alarinova is building in Ain Sokhna. To learn more about Steigenberger Resort Ayalora, Al Sokhna and its efforts to revive Egypt’s architectural heritage, you can follow Alarinova and track updates for Steigenberger by clicking here and here respectively.

ENVIRONMENT | GEM | TOURISM
GEM DECLARED CARBON NEUTRAL IN MAJOR GREEN PUSH

Egypt has declared the Grand Egyptian Museum (GEM) carbon neutral in a landmark environmental initiative, marking it as one of the first major cultural landmarks in the region to achieve full carbon neutrality. The announcement underscores Egypt’s commitment to sustainable development and green tourism practices.

Green certification: Officials said GEM reached carbon neutrality through a combination of renewable energy usage, emissions reductions, and offsetting programs that align with global climate standards. The move reflects a broader national strategy to integrate eco-friendly practices into major infrastructure and tourism projects.

By securing carbon-neutral status, GEM is poised to attract environmentally conscious visitors and investors, bolstering Egypt’s cultural tourism credentials while setting a new benchmark for sustainability in the Middle East.

National strategy: The initiative is part of Egypt’s wider environmental vision, which includes expanding clean energy usage across public institutions and promoting low-carbon policies that contribute to climate goals and economic resilience.