Good morning, and welcome to Telda Lens — your daily pulse on Egypt’s markets.

Today: Orascom Construction's board approved a merger with OCI Global, Palm Hills is targeting major sales from Saadiyat Shores in Abu Dhabi, and Al Tawfeek Leasing closed an EGP 1.85 billion securitized bond.

🔔 EGX30 ended -0.05% by market close at 41,940 points, the EGX70 rose 0.95% to 12,870 points, and the EGX100 increased 0.89% to reach 17,053 points.

💸 The number of transactions reached 136,163 spread across 2,916,533,314 stocks leading to a turnover of EGP 6.8 billion.

🏷️ Local investors were the only net buyers.

📈 Top gainers for the market as a whole included Development & Engineering Consultants (+19.99%), Elsewedy Electric (+14.94%), and Alexandria New Medical Center (+11.96%).

📉 Top losers for the market included Eastern Company (-6.04%), Upper Egypt Flour Mills (-5.35%), and Gmc Group for Industrial Commercial & Financial Investments (-4.50%).

⬆️ Top gainers for EGX30 included Beltone Holding (+4.1%), Raya Holding (+3.9%), and Qalaa Holdings (+2.9%).

⬇️ Top losers included Eastern Company (-6.04%), Orascom Construction (-1.9%), and Fawry (-1.0%).

Other Important Stats: 

🧈 24K Gold reached EGP 6,440 per gram, down 0.14% day-on-day but up 4.77% month-on-month.

💲 The USD reached EGP 47.55 at the National Bank of Egypt.

🤝The board of Orascom Construction (ORAS) has approved its merger with OCI Global, paving the way for the two Sawiris-backed firms to form a single Abu Dhabi–based infrastructure and investment group through a share-swap structure. If shareholders sign off in January, the combined entity — in which Orascom investors will hold 53% — is expected to launch in 2026. (Read more in our Deeper Look Section.)

💸 Palm Hills Developments (PHDC) is making its UAE debut with the Saadiyat Shores mega project in Abu Dhabi, which is expected to generate over USD 7 billion in sales from buyers across Europe, the US, Egypt, and Asia. (Read more in our Deeper Look Section.)

📝Al Tawfeek Leasing (ATLC) successfully wrapped up a EGP 1.85 billion securitized bond, marking the first under its new securitization program and the company’s sixth overall. The bonds, backed by future leasing receivables, will strengthen the balance sheet and fund expansion plans. Local banks including CIB, National Bank of Egypt, Banque Misr, and Banque du Caire, along with Attijariwafa Bank, participated, with the issuance structured in three floating-rate tranches ranging from 25 to 48 months and rated between AA+ and A. The company’s share value is up 42% since the start of the year.

✅ The board of Acrow Misr (ACRO) has approved a plan to voluntarily remove the company from the EGX. Pending approval from the general assembly, shareholders who decide to exit after the delisting will be able to sell their shares back at EGP 129.29 each, exceeding the previously set maximum buyout price of EGP 100 per share.

🛢️Israel has reportedly reached a final agreement with the Leviathan partners on our USD 35 billion gas export deal with the country. The country’s Prime Minister Netanyahu expected to approve it within days. The pact sets a fixed price and ensures Israeli domestic supply takes priority if disruptions occur elsewhere, but exports to Egypt could still face sudden interruptions. The deal was reportedly finalized under US pressure, and comes as Egypt intends to continue importing LNG until 2029–2030 to cover the shortfall caused by declining domestic production, which has dropped to 4.2 billion cubic feet per day while daily demand reaches 6.2 billion cubic feet..

⚡Egypt plans to invest around USD 60 billion to add about 23 GW of electricity by 2030, mainly from renewable sources, according to Investment Minister Hassan El Khatib at a Riyadh conference, as reported by Asharq Business. By 2040, the country will need an additional 45 GW, 90% of it renewable, to accommodate population growth. The government is also coordinating with development finance institutions to phase out older gas-fired plants in favor of renewables, but integrating the new capacity will require around USD 45 billion in distribution infrastructure, especially since major wind farms along the Red Sea are far from the existing grid.

Orascom Construction — listed on both the EGX and ADX — is advancing its planned merger with OCI Global, creating a new Abu Dhabi–headquartered infrastructure and investment group backed by Nassef Sawiris. The board approved the deal, which will combine OCI’s assets with Orascom through a newly formed entity. Orascom will acquire the new vehicle by issuing shares to OCI investors, after which OCI will be liquidated and removed from Euronext Amsterdam.

Merger mechanics and share exchange:

OCI shareholders will receive approximately 97.8 million Orascom shares, based on an exchange ratio of 0.46 Orascom shares for each OCI share. This ratio reflects equity valuations of USD 1.52 billion for Orascom and USD 1.35 billion for OCI. To facilitate the merger, Orascom Construction will increase  its issued capital from USD 110.2 million to USD 207.4 million, issuing 97.2 million new shares at a USD 12.79 premium, while the remaining 561,800 shares will come from OCI’s existing stake.

Ownership and structure post-merger:

Once completed, Orascom shareholders will hold 53% of the merged group, with OCI shareholders controlling 47%. The entity will operate under the name Orascom and will be organized into three divisions: Orascom Infrastructure, Orascom Construction, and Orascom Capital. The company will remain listed on the EGX and ADX and incorporated in ADGM, with Nassef Sawiris continuing as non-executive chairman.

Investment capacity and strategy:

The combined balance sheet is set to deploy over USD 1 billion in infrastructure and concession projects, leveraging Orascom’s USD 13 billion backlog and OCI’s recent asset sales. Nassef Sawiris has indicated the group could invest up to USD 50 billion in US infrastructure over the next decade, targeting both equity and partner-funded opportunities.

Remember, this comes after a strong 9M for Orascom Construction:

Orascom Construction posted a 9M 2025 net profit of USD 133.3 million, up 53% year-on-year, driven by strong execution in infrastructure, energy, and industrial projects. Revenue climbed 48% to USD 3.43 billion, led by Middle East & Africa projects including rail, metro, and utilities, while US operations added USD 1.4 billion.

The company, comprising 2% of the EGX 30 index weight, is up 69% in stock value since the start of the year.

Next steps:

Extraordinary general meetings for both companies are scheduled in January for shareholders to vote on the merger. If approved, OCI shareholders are expected to receive their Orascom shares in the first quarter of 2026.

Palm Hills Developments (PHDC) is entering the UAE market with its first major investment: The Saadiyat Shores project in Abu Dhabi, which is expected to cost about USD 5.4 billion in construction costs. 

The company aims to generate over USD 7 billion in sales from the project, attracting buyers from Europe, the US, Egypt, and Asia, Chairman Yassin Mansour told Reuters earlier this week.

The 1.87 million square meter development will feature three interconnected islands:

In total, the project will deliver 620 villas and 1,000 apartments, blending luxury living with unique architectural concepts.

Palm Hills is finalizing regulatory approvals, with construction expected to start in April or May, and property deliveries anticipated around three years later, Mansour told Reuters.

The developer is negotiating with UAE banks to secure funding for the project and expects to finalize term sheets shortly. 

Expansion beyond Saadiyat Shores:

Palm Hills has plans for additional projects in Abu Dhabi and Dubai, as well as potential developments in Saudi Arabia, targeting Riyadh and Jeddah. The company also plans to launch a new project in 6th of October during 1Q 2026, alongside another development in the New Administrative Capital.

Remember, the expansions come after the company report strong 9M results:

Palm Hills Developments’ earnings rose 50% year-on-year to EGP 3.5 billion in the first nine months of 2025, with revenues up 42% to EGP 25.4 billion on strong new sales. In 3Q 2025 alone, net income surged 93% YoY to EGP 1.1 billion, and revenues increased 42% year-on-year to EGP 10  billion. The real estate developer’s shares are up 31.5% since the beginning of 2025.

Stay curious, stay invested — we’ll see you tomorrow.

Your daily market lens, signing off.