?Geopolitical Briefing: Egypt
25 May 2025
- Egypt is negotiating the import of up to 60 LNG cargoes amid an escalating energy crisis and reduced gas supplies from Israel.
- The Central Bank of Egypt has cut key interest rates by 100 basis points to stimulate economic growth amid moderating inflation.
- Foreign Minister Badr Abdelatty met with NATO officials to discuss regional security and strengthen Egypt’s partnership with the alliance.
- Archaeologists have discovered 5,000-year-old sealed wine jars in Abydos, offering new insights into ancient Egyptian winemaking practices.
- Aljar Development has launched the Aljar British District in East Cairo, featuring Egypt’s first British-affiliated medical school.(Reuters, Reuters, NATO, The Times of India, Dailynewsegypt)
Facing a deepening energy crisis, Egypt is in discussions to import 40 to 60 liquefied natural gas (LNG) cargoes ahead of peak summer demand, potentially spending up to $3 billion. This move follows declining domestic gas production, which dropped to a nine-year low in February, and recurring electricity blackouts over the past two years. The energy crunch is exacerbated by reduced gas deliveries from Israel’s Leviathan field due to maintenance, impacting Egypt’s fertilizer production and foreign currency earnings. Israeli gas accounts for 40-60% of Egypt’s gas imports, but Israel now seeks a 25% price hike, citing relatively low current pricing linked to oil. Egypt’s economic challenges, including a hard currency shortage, have also delayed payments to international oil firms, limiting exploration and production growth. This situation underscores Egypt’s vulnerability due to reliance on external energy sources, highlighting the need for diversified and autonomous energy strategies.(Reuters)
On May 22, 2025, Egypt’s central bank cut its key overnight interest rates by 100 basis points, reducing the deposit rate to 24% and the lending rate to 25%. This decrease, the second of the year, was less than the 175-bps cut forecasted by analysts. The decision followed signs of accelerating economic growth, with Q1 2025 GDP estimated at 5.0%, up from 4.3% in the previous quarter, and moderating inflation, which fell to 12.8% in February before rising slightly to 13.9% in April. Inflation is projected to keep declining over 2025 and 2026, although at a slow pace due to ongoing fiscal consolidation and persistent non-food inflation. The Monetary Policy Committee stated that the rate cut balances risk management with support for monetary easing and disinflation efforts. This monetary policy adjustment aims to stimulate economic activity while maintaining financial stability, reflecting efforts to achieve greater economic autonomy.(Reuters)
On May 22, 2025, Deputy Secretary General Radmila Shekerinska welcomed the Foreign Minister of the Republic of Egypt, Dr. Badr Abdelatty, to NATO Headquarters to discuss NATO-Egypt relations and regional security during a meeting of the North Atlantic Council. Egypt joined NATO’s Mediterranean Dialogue in 1995, a partnership format aiming to contribute to regional security and stability in the Mediterranean region through political dialogue and practical cooperation. This engagement reflects Egypt’s ongoing collaboration with Western security structures, balancing its regional interests with international partnerships.(NATO)
Archaeologists have made a groundbreaking discovery of 5,000-year-old sealed wine jars in the tomb of Queen Meret-Neith at Abydos, Egypt, marking one of the oldest direct links to ancient winemaking. Led by Christiana Köhler from the University of Vienna, the excavation unearthed numerous jars, some still sealed and containing intact grape seeds and stoppers. This rare preservation provides scholars with invaluable data on the techniques used by early Egyptians in wine production and preservation. The findings highlight wine’s importance in cultural and ceremonial contexts and suggest its role in early trade and technological advancements. This discovery enhances Egypt’s cultural heritage, potentially boosting its tourism sector and reinforcing national identity.(The Times of India, Horeca Middle East & Africa)
Aljar Development has officially launched its latest urban megaproject, the Aljar British District, during a high-profile ceremony in East Cairo. Developed in collaboration with UK-based NHMC Group, the project represents a landmark in Egypt’s real estate and education sectors, combining luxury living with advanced medical and educational services. A mixed-use urban development, the Aljar British District integrates residential, hotel, commercial, administrative, and educational facilities. The medical city, developed by NHMC Group UK, will also host Egypt’s first British-affiliated medical school. In partnership with Aston University, this school will grant degrees fully accredited in the United Kingdom, marking a historic advancement in Egypt’s higher education landscape. This initiative signifies Egypt’s commitment to enhancing its educational infrastructure and attracting international collaborations, contributing to societal development.(Dailynewsegypt)
