Egypt outlines ambitious energy plans, multi-billion FDI, major gas discoveries
via Egypt Today6 min read
Egypt's Cabinet has outlined ambitious energy plans, including major gas discoveries, increased renewable energy targets, and significant anticipated investments. Prime Minister Mostafa Madbouly detailed these plans, highlighting the government's commitment to settling dues owed to foreign energy partners, reducing accumulated arrears from over $6.1 billion to $714 million, with full repayment expected by June 30. This move has incentivized international companies to intensify exploration and production activities. International companies have committed over $19 billion in petroleum sector investments over the next three years, including $8 billion from Eni, $5 billion from BP, $2 billion from Emirati ARCIUS, and $4 billion from Apache Corporation. Recent natural gas discoveries include a find in the Abu Madi area of Kafr El-Sheikh Governorate, expected to add 50 million cubic feet of gas production per day, and the Denise gas field, with estimated reserves exceeding 2 trillion cubic feet of natural gas and over 130 million barrels of condensates, projected to produce 500-600 million cubic feet of gas per day once operational in the second half of 2027. Egypt has also raised its renewable energy target to approximately 45% of the country鈥檚 energy mix by the end of 2028, up from a previous target of 42% by 2030. Additionally, the economy grew by 5% in the third quarter of the current fiscal year, surpassing earlier estimates. The government is also working to empower the priva
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The Foreign Ministers of Egypt, Pakistan, Saudi Arabia, and Turkey recently convened in Cairo for the fourth round of their quadrilateral meeting, reaffirming the importance of continued consultation and coordination to support peace, security, stability, and prosperity in the Middle East and the wider region. The meeting discussed regional developments following the signing of the Islamabad Memorandum of Understanding MoU between the United States and Iran on June 18, 2026. This agreement was described as a constructive step towards de-escalation and ending a conflict that posed significant risks to regional security, energy markets, international maritime routes, global supply chains, and international trade. The ministers commended the efforts of regional and international actors, particularly Pakistan and Qatar, in facilitating this agreement. They stressed the importance of faithfully implementing the commitments and achieving a swift and successful conclusion to the next phase of negotiations for a lasting resolution to remaining issues, considering the concerns of Gulf Arab states and Arab Mashriq. The ministers also reaffirmed the centrality of the Palestinian cause, emphasizing support for the legitimate rights of the Palestinian people, including self-determination and an independent Palestinian state with East Jerusalem as its capital, based on the June 4, 1967 lines. The MoU, formally signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian du
Must ReadThe Central Bank of Egypt CBE has issued a directive prohibiting banks from extending credit facilities to finance the capital of new companies or to cover increases in share capital. The circular, approved by the CBE Board of Directors on June 17, 2026, also bans the use of bank financing for cash dividend distributions and employee bonus shares. This measure is intended to strengthen controls over credit use within the banking sector and ensure that credit is directed towards productive economic activities, aligning with sound banking standards. The CBE noted that this decision reinforces earlier instructions from March 2003 and September 2021, which similarly restricted credit for company incorporation capital, capital contributions, and the financing of cash dividends to employees or shareholders. Banks are required to fully comply with these restrictions to ensure lending is focused on operational and investment purposes.
Prime Minister Mostafa Madbouly stated that real estate development projects are crucial for Egypt鈥檚 economic growth, industrial activity, and job creation. His remarks were made during a signing ceremony for a strategic partnership between Egyptian company Midar Investment and Urban Development and UAE-based Majid Al Futtaim. This partnership aims to develop an integrated urban project in Mada City, New Cairo, spanning 553 feddans with investments exceeding $3.1 billion. Madbouly emphasized that such projects demonstrate investor confidence in the Egyptian economy and position Egypt as a key destination for regional and international investment. He also referenced the State Ownership Policy Document, which promotes increased private sector participation, especially in real estate. The Prime Minister clarified that the real estate sector encompasses more than just housing, including retail, hospitality, tourism, and entertainment, all contributing to broader economic activity. He addressed criticisms regarding the state's focus on real estate, explaining that these developments are linked to numerous industries, including construction, manufacturing, food production, and retail, supporting thousands of factories. Madbouly added that the economic benefits extend beyond project completion, with ongoing commercial and service activities generating employment and supporting additional sectors. He reiterated the government's support for partnerships between Egyptian and foreign pr