September 2026

VIEWPOINT

Headline indicators and

financing alone do not create

external resilience. Lasting resilience requires foreign

currency generated by what Egyptians produce and sell

globally. The latest figures show progress and an unfinished

structural task.

The August 2026 Financial Markets Snapshot issued by

the Egyptian Center for Economic Studies (ECES), which I

have the privilege of chairing, describes the improvement

as “temporary by nature.” It notes that external-sector

indicators have strengthened because foreign-currency

liquidity has improved, but cautions that, without structural

change, these gains remain vulnerable to regional tensions

and external shocks. Central Bank of Egypt balance-of-

payments data for July 2025–March 2026 confirm that

stabilization is real, but its foundations are not yet durable.

Egypt’s overall balance-of-payments deficit remained

almost unchanged at $1.8 billion, despite nearly $9.5

billion in net portfolio outflows during one quarter of

regional tensions. Official reserves were preserved and

financing channels stayed open, demonstrating capacity to

absorb shocks. This is meaningful macroeconomic

stabilization, but not yet structural rebalancing.

The underlying imbalances remain substantial. The

current-account deficit widened to $14.6 billion, while the

goods trade deficit reached $47.8 billion, nearly one-

quarter higher than in the corresponding period. Goods

exports covered only 39.7% of imports, down from 43.7%.

Each additional dollar of non-oil exports coincided with

nearly five dollars of additional non-oil imports. Financing

supported the external account; it did not narrow the

productive gap.

This distinction must guide the next phase. Remittances

reached $34.9 billion over the nine months, exceeding

goods exports over the same period. Foreign direct

investment and well-executed asset sales can add capital,

technology and market access, while prudent borrowing

can finance productive investment. All are valuable, but

financing can create stability; only stronger earning

capacity can turn it into sustainable growth.

The first priority must therefore be to convert stabilization

into production and exports. The necessary reforms have

long been identified: a competitive real exchange rate,

faster customs clearance, reliable energy, lower logistics

costs, predictable taxation and a genuine level playing

field. Serious efforts are under way, but their pace and

breadth must increase. Egypt must make it consistently

easier to produce and export.

Services should become a second national export engine.

Despite repeated recognition of their importance, they have

not yet received policy attention commensurate with their

potential.

Information

technology,

business-process

outsourcing, engineering and professional services generate

foreign currency and skilled jobs with fewer imported

inputs. Other services receipts, including ICT and

offshoring, reached $4.6 billion over the nine months and

were among the fastest-growing earned inflows. The sector

needs a clear national target, stronger skills, predictable

taxation and banking arrangements that allow smaller firms

and freelancers to receive foreign-currency earnings

without unnecessary friction.

Energy is the other side of the equation. Egypt’s oil and

gas trade deficit widened to $13.1 billion over the nine

months, with energy imports reaching $17.3 billion.

Accelerating renewables and grid investment, aligning

incentives with the true cost of imported energy, and

advancing electricity interconnections with Europe could

create import savings and export earnings.

Empowering the private sector is not one reform among

many; it is the principal route to correcting these

imbalances. Macroeconomic stabilization creates the

platform, but only a dynamic private sector can deliver

sustained investment, productivity, innovation and exports.

This requires predictable rules, competitive neutrality,

access to finance, land and energy, efficient customs, and

the ability to move goods, data and money. Government

must maintain stability, provide enabling infrastructure and

remove barriers, without crowding out private initiative. At

AmCham Egypt, we will continue using public-private

dialogue to advocate practical reforms.

Egypt has shown that it can withstand an external shock

without returning to currency rationing and port backlogs.

That achievement is real. But stabilization is a platform,

not a destination. Success should be measured not only by

the financing Egypt attracts, but by the foreign currency

earned by Egyptian workers, companies and productive

assets. Genuinely empowering the private sector through

the right policies is the key to moving from temporary

stability to durable resilience, and from financing

resilience to earning strength.

OMAR MOHANNA

President, AmCham Egypt

FROM EXTERNAL STABILITY TO EARNING

STRENGTH

Egypt has achieved meaningful macroeconomic stabilization. The next phase must

correct external imbalances by empowering the private sector to invest, produce

and export. Improved foreign-currency liquidity must now be converted into lasting

earning capacity.

With

breath

puriﬁed oxygen at 180

meters above sea level,

“The Vie West Cairo”

Regent

Signature

Developments introduces

a sustainable, resort-style

sanctuary in the heart of West

Cairo, redeﬁning luxury as a lifelong state of well-being.

In a rapidly expanding metropolitan landscape

like Cairo, the traditional deﬁnitions of luxury real

estate are undergoing a profound evolution. Today’s

sophisticated homeowner is no longer merely looking

for square footage or premium ﬁnishes; they are

seeking a lifestyle that actively nurtures their physical,

mental, and environmental well-being.

Enter Mohab El Tabei, the visionary CEO of Regent

Signature Developments. Recognizing this critical

gap through rigorous market due diligence, a

comprehensive SWOT analysis, and scientiﬁc gap

analyses, El Tabei and his active committee set out to

disrupt the Egyptian real estate market. The result is “The

Vie West Cairo,” a revolutionary green hospitality and

residential community that brings the disconnected

serenity of a coastal retreat directly into Cairo.

“We realized there was a severe shortage of

integrated wellness communities in Cairo,” says

Mohab El Tabei, reﬂecting on the inception of Regent

Signature Developments. “Whenever someone wanted

to completely disconnect or experience a health

and wellness retreat, their instinct was to leave Cairo.

We asked ourselves: why can’t we create that deep,

therapeutic sense of sanctuary right here in the city?”

To turn this ambitious vision into a tangible reality,

Regent Signature Developments created immediate

strategic partnerships with global design powerhouse,

OkoPlan. OkoPlan was brought in from day one to

spearhead three critical disciplines: master planning,

landscape design, and architecture. Together, they

surveyed the land and designed an ecosystem where

architecture and nature coexist in perfect harmony.

while bringing JINET into the project as Landscape

Owner’s Representative, design-review specialist and

technical lake advisor.

Perched at an impressive 180 meters above sea level,

the community enjoys a microclimate entirely distinct

from the rest of Cairo. Residents are greeted by a

constant, an elevated setting with stronger openness,

airﬂow and panoramic perspectives., establishing an

immediate sensory boundary between the bustling

city and this high-altitude haven.

At the core of The Vie West is a commitment to

absolute sustainability. Rather than treating eco-

friendliness as a marketing buzzword, Regent

Signature Developments partnered with REEDS,

the renowned environmental experts who records

24 LEED-certiﬁed projects and states that the

company pioneered EDGE certiﬁcation in Egypt.

The Palace is formally registered under LEED v4

ID+C Hospitality, while the Branded Residences are

intended to pursue EDGE certiﬁcation. The Palace

registration is documented directly through GBCI.

This prestigious green building certiﬁcation

is a massive win for both the planet and the

homeowner. “For the end-user, EDGE certiﬁcation

is not just about reducing our carbon footprint,” El

Tabei explains. “It translates into a highly practical

to 30% to 40% reduction in utility costs through

optimized, energy-efﬁcient designs and smart

resource management.”

The true genius of the community lies in its

innovative hospitality community model. Instead of

hiring an international hotel operator solely to manage

a boutique hotel or branded residences, Regent

RISING ABOVE

HOW REGENT SIGNATURE DEVELOPMENTS IS PIONEERING EGYPT’S

FIRST TRUE HOLISTIC WELLNESS COMMUNITIES

Mohab El Tabei,

CEO, REGENT SIGNATURE DEVELOPMENTS

Signature Developments is working with Campbell

Gray Hotels, an international owner-operator and hotel

management company with a presence across 11

countries in Europe, the Middle East and Africa. Through

Campbell Gray’s relationship with GHA DISCOVERY,

residents can access a global hospitality network of

more than 800 luxury hotels across 100 countries.

collaboration

with

specialist

wellbeing

practitioners from Switzerland, Regent is developing

what it intends to be a ﬁrst-of-its-kind integration of

Healing Arts into everyday community living in Egypt

— without turning the destination into a medical clinic.

From compact luxury studios and one-to-three-

bedroom apartments to townhouses, standalone

villas, and family buildings, every single property

receives the same uncompromising level of white-

glove hospitality service.

The crown jewel of The Vie West is undoubtedly

its

breathtaking

water

feature:

expansive

30,000-square-meter

lagoon

winding

gracefully

through the master plan.

Divided meticulously to maximize lifestyle quality, the

centerpiece includes a 4,000-square-meter swimmable

lagoon featuring an active Sandy beach zone.

To enrich the community’s resort-style ecosystem, a

signature restaurant set on a rustic wooden deck will

ﬂoat between the swimmable lagoon and a scenic

reﬂection lagoon. this dining destination ensures

that world-class culinary experiences are always just

a short stroll away.

The development features The Palace, a magniﬁcent

32-suite boutique hotel already structurally complete.

coordination with Larry Windes with interior curation

by French designer Gérard Jardonnet.

The Palace features a classic, elegant French

aesthetic. Its orientation has been meticulously

adjusted so that guests and residents enjoy sweeping,

direct views of the Pyramids of Giza.

To support this tourism expansion, Regent is

adding 400 branded residence keys and 100 luxury

hotel keys. Backed by Dubai’s premier hospitality

arm, White Label Consultancy, Regent is launching a

groundbreaking Global Rental Pool Program. Under

this program, any homeowner, whether they own

a branded unit or a standard residence, can place

their property under the operator’s global booking

platform. And underneath that operating vision lies

one of The Vie’s most important — and least visible —

assets: an approved Ministerial Decree and masterplan

covering the development under a hotel/hospitality-

use designation across the overall project.

“Your property is marketed worldwide, attracting

international travelers and generating high-yield

rental returns in foreign currency,” notes El Tabei.

“It provides the ultimate ﬂexibility: an exquisite ﬁrst

home for your family, and a high-yielding ﬁnancial

asset when you are away.”

“We aren’t just selling concrete or handing over physical

units,” concludes Mohab El Tabei. “We are delivering

a meticulously crafted lifestyle, a place to build lifelong

memories, and a legacy of holistic well-being.”

Located just two minutes from the Mall of Egypt,, and

a short drive from the Grand Egyptian Museum and

the pyramids, The Vie West is not just a destination, it is

home, elevated.

At more than 180 meters above sea level, The Vie West

Cairo brings together a real Palace, an established lake

setting, low-density planning, hospitality and wellness

within one 40-acre destination.

Rather than treating wellness as another amenity,

Regent Signature Developments is building the

community around how people want to live, move,

recover, connect and spend their time.

Advertorial

Across the Region, businesses are entering a new

phase of growth. Digital transformation is no

longer simply about adopting new technologies;

it is increasingly about rethinking how companies

operate, serve customers, manage risk and prepare

for what comes next.

As digital commerce expands and consumer

expectations

evolve,

businesses

are

looking

beyond individual technologies toward the broader

ecosystem that enables digital growth: secure

infrastructure, trusted partnerships, responsible

innovation and a workforce equipped for the

future.

Trust Is the New Infrastructure

For many corporates, this means investing in

digital payments, data, and artiﬁcial intelligence

to streamline operations, reach new customers,

and

make

informed

decisions.

Secure

digital

infrastructure is now central to managing risk.

Visa’s network, with over 5.2 billion cards worldwide,

shows that even small improvements in security or

convenience have signiﬁcant impact at scale.

AI is already part of the customer journey. Visa’s

2026 Stay Secure study found 91% of Egyptian

consumers have used AI tools while shopping, and

97% say these tools make online shopping faster and

By Malak El Baba,

Vice President and Country Manager

for Egypt, Libya and Sudan at Visa

VISA: TRUST

BY DESIGN,

NOT BY CHANCE

HOW DIGITAL TOOLS,

TRUSTED PARTNERSHIPS

AND INCLUSIVE GROWTH ARE

RESHAPING THE REGION’S

CORPORATE LANDSCAPE

easier. AI has shifted from novelty to an expected

part of shopping.

Yet only 38% currently trust AI agents to

complete checkouts on their own. This gap

between AI usage and willingness to hand over

control reveals consumer caution. Shoppers let AI

guide research and comparison, but want control

when money is involved.

Where risk concentrates also matters. Nearly half

of Egyptian consumers who experienced fraud say it

happened through social media, the same platforms

where most now discover and buy products.

New sales channels do not automatically inherit

protections built for traditional e-commerce.

Competitiveness now depends less on adopting

technology quickly and more on responsible

implementation. Visa’s Threat Intelligence Platform

merges cyber and fraud intelligence to protect its

global network, using the same tools that block

about 90 million cyberattacks and 11 million phishing

emails each month. Tools like Visa Protect use similar

AI-driven techniques across payment channels,

catching risks before they become losses in daily

transactions, not just in rare cases.

This shift toward built-in security is also evident in

payment systems. In Central and Eastern Europe,

the Middle East, and Africa, tokenized transactions

rose from 26% in 2023 to 70% in 2026, reducing data

exposure risk without slowing checkout. Security no

longer needs to compromise customer experience

for corporates.

The stakes are high. In 2024, Visa’s global risk

systems stopped $40 billion in attempted fraud,

with another $350 million blocked through scam

disruption. This highlights both the scale of the threat

and the value of early intervention. Visa’s $13.9 billion

in cash and investment securities (as of June 2026)

ensures continued investment in innovation and

security even as technology evolves.

The Power of Connected Ecosystems

business

can

navigate

this

transition

alone. Strategic partnerships provide access

to specialized expertise and help adapt global

innovation to local needs.

Visa’s Agentic Ready program gives ﬁnancial

institutions a production-grade environment to

test

and

understand

AI-initiated

transactions,

helping issuers prepare for next-generation digital

commerce. In Egypt, early participants include

National Bank of Egypt, Banque Misr, Qatar National

Bank Egypt, Arab African International Bank,

ALEXBANK, and Bank NXT.

This ecosystem approach also extends to businesses.

Visa Accept enables small businesses to accept

payments on a smartphone without extra hardware,

while Visa Direct helps businesses send payments

to employees, contractors, and drivers and supports

refunds and incentives.

Public-private collaboration is vital. The Central

Bank of Egypt’s new digital identity and eKYC rules

let customers open accounts and access banking

services digitally, eliminating branch visits. These

advances remove barriers to ﬁnancial inclusion and

help businesses deliver services more efﬁciently.

For multinationals, this is a chance to contribute

beyond technology by sharing knowledge, building

capabilities, and bringing global best practices

tailored to local needs.

At Visa, partnerships are core to our DNA. As a

global network connecting governments, ﬁnancial

institutions, ﬁntechs, merchants, and technology

providers, Visa sits at the center of the payments

ecosystem. We bring together diverse stakeholders

to drive innovation, ﬁnancial inclusion, and economic

growth. This commitment was clear at a recent

high-level

public-private

roundtable

co-hosted

with AmCham Egypt, where business leaders and

ofﬁcials discussed how digital payments, ﬁntech, and

partnerships can accelerate Egypt’s digital economy.

Widening the Circle of Growth

Digital

transformation

matters

most

when

expands access for underserved businesses and

communities. Globally, 530 million unbanked adults

own a smartphone. Now, usable tools, not devices,

are the barrier.

For SMEs and local suppliers, 85% of small

businesses surveyed by Visa in Egypt say digital

tools helped them grow and strengthened the value

chains corporates rely on.

Women-led businesses show this impact. Visa’s

Women SMB Digitization Index found that 66% of

surveyed women business owners in Egypt use both

online and ofﬂine channels, with online sales accounting

for 49% of revenue. Most are building hybrid business

channels. Similarly, losing a single channel.

Similarly, 72% accept both cash and cashless

payments

and

are

adopting

chatbots

and

analytics. Businesses are broadening payment

and engagement options rather than digitizing

everything at once.

Supporting women-led businesses is not just about

inclusion. It also builds more resilient economies. In

Egypt, Visa’s She’s Next initiative has, for four years,

provided women entrepreneurs with ﬁnancing,

training, and mentorship. Globally, the initiative has

delivered over 250 grants and training sessions since

2020, helping women-led businesses adopt digital

tools and grow.

Looking ahead, payments in Egypt will become

less visible, embedded into shopping, travel, and

business. Identity, context, and AI will combine so

transactions require fewer steps. Progress will be

measured by how seamlessly, safely, and intelligently

digital payments ﬁt into daily life, not just by

transaction volume.

Advertorial

A Conversation with

Hossam Seifeldin,

CEO of Capgemini Egypt

After more than 18 years abroad, what motivated

you to return to Egypt?

Returning to Egypt was not a career move. It was a

personal decision. Throughout my career, I had the

privilege of working with a world-class organization

and witnessing Egyptian professionals excel in every

market I worked at. It always reinforced the same

belief: Egypt has incredible talent.

When the opportunity came to lead Capgemini

Egypt, I saw a chance to contribute to something

bigger than business growth. I wanted to help create

opportunities for talented Egyptians to build global

careers from Egypt, while contributing to the country’s

growing role in the global technology landscape.

Capgemini Egypt has grown significantly in

the past years. What has been driving that

momentum?

Growth is always the result of people. Today, we have

around 1,700 employees supporting clients across

multiple geographies and industries. We continue

to expand our capabilities and take on increasingly

complex work within Capgemini’s global network.

Having said that, what excites me most is not the

numbers themselves, it is seeing people grow

alongside the organization and build up their value

and the value they bring to our clients. When someone

joins us as a young professional and later becomes a

team leader or a skilled professional, that’s incredibly

rewarding. We’re also expanding our physical footprint

with two additional ﬂoors in our building, reﬂecting

both our ongoing growth and our conﬁdence in Egypt

as a long-term strategic location for Capgemini.

You often speak about the importance of a

learning mindset, mentorship, and coaching.

Why is that so important to you?

Because the world is changing faster than ever, and

the ability to learn may be the most valuable skill any

professional can have. When I look back at my own

career, I realize that continuous learning is what made

growth possible. That’s why Capgemini encourages

our

people

embrace

learning

mindset.

Technologies change every day, and business models

transform. What remains constant is the ability to

stay curious and keep learning.

As for coaching, I personally beneﬁted from leaders

who challenged me and helped me see opportunities.

Good

coaching

builds

conﬁdence

and

helps

people realize their potential. As leaders, we have a

responsibility not only to deliver business results but

also to help others grow. Ultimately, organizations

grow when people grow. That’s why creating a culture

of learning, coaching, and continuous development

will always be our companies’ top priorities.

How is Capgemini Egypt preparing the next

generation of talent?

Developing young talent is one of the most important

investments we make. Through our internship

programs and Young Professional Program, we give

students and recent graduates the opportunity

to work on real projects, learn from experienced

professionals, and gain exposure to international

environments. For many participants, it’s their ﬁrst

experience in a global organization, and that exposure

can be transformative. Also, it is not just about

Building Egypt’s Next Chapter

in Technology

After more than two decades building his career across the region, Hossam Seifeldin returned to Egypt

with a clear ambition: to help position Egyptian talent at the center of global technology and business

transformation. Today, Capgemini Egypt has grown into a strategic hub serving clients worldwide, with

approximately 1,700 professionals, expanding capabilities, and a growing footprint.

Seifeldin discussed leadership, talent, innovation, AI, and why he believes Egypt’s best days are still ahead.

I wanted to help create

opportunities for talented

Egyptians to build global careers

from Egypt while contributing to

the country's growing role in the

global technology landscape."

Advertorial

technical skills, but more about communications,

networking, problem solving and conﬁdence.

Innovation has become a key differentiator in the

technology sector. How do you foster it within

the organization?

Innovation starts with creating an environment

where people feel empowered to think differently. At

Capgemini, we call it “the entrepreneur’s mindset”.

One of the things that makes me proud is seeing some

of our young engineers develop solutions that have

progressed to patent ﬁlings. Those achievements

are a reﬂection of both technical excellence and a

willingness to challenge conventional thinking.

AI is transforming every industry. What role does

it play in Capgemini Egypt’s future?

AI represents one of the biggest shifts we’ve seen in

decades. What’s interesting is that conversation has

evolved. Organizations are no longer asking whether

they should use AI. They are asking how to apply it

responsibly and effectively to create business value.

At Capgemini, we’re embracing AI in two ways.

Internally, we equip our teams with the skills and

tools needed to work alongside AI technologies

and enhance the way they deliver value. Externally,

we’re helping clients move from experimentation

to scaled implementation. To support this growing

demand, we’ve expanded our AI capabilities and

strengthened our AI Center of Excellence, bringing

together expertise that helps clients accelerate their

transformation journeys while keeping people at the

center of innovation.

Beyond business performance, Capgemini Egypt

has invested heavily in community initiatives. Tell

us about Digitelles Misr.

Digitelles Misr is particularly close to our hearts

because it brings together two priorities we strongly

believe in at Capgemini: women’s inclusion and

digital empowerment. Developed in collaboration

with the American University in Cairo, the program

equips women, particularly in governorates, with

digital and professional skills that help them access

new economic opportunities. The goal is to prepare

participants for careers in digital freelancing, enabling

them to work remotely and connect with clients

anywhere in the world.

What also makes the initiative special is the

commitment of our people. Many of our employees

volunteer their time as mentors and trainers, sharing

their experience and helping participants navigate

their professional journeys.

Following the success of the ﬁrst phase, we are

launching the next phase of Digitelles Misr this

October, reaching more women and introducing a

stronger focus on AI skills to prepare them for the

opportunities of tomorrow.

Looking ahead, what is your vision for Capgemini

Egypt?

My vision is for Capgemini Egypt to be recognized

as the leading technology and innovation hub for

the group, known for exceptional talent, strong

client impact, and a culture of continuous learning.

Technology is evolving faster than ever, which means

success will depend on our ability to adapt. We must

remain agile, embrace change, and continuously

build new capabilities, particularly in areas like AI and

emerging technologies.

I also want Capgemini Egypt to be the employer

of choice for top talent, a place where people can

learn, grow, innovate, and build meaningful careers.

If we continue to invest in our people, stay ahead of

technology trends, and foster a culture of innovation,

I am conﬁdent that our best years are still ahead of us.

CAPGEMINI EGYPT AT A GLANCE

Driving Growth, Innovation and Talent

Development

• 1,700+ professionals serving global clients

• Expansion of ofﬁce space with two

additional ﬂoors

• Dedicated AI Center of Excellence

• Young Professional Program supporting

early career talent

• Internship programs connecting students

to real-world experience

• Engineers contributing to patent ﬁlings

and innovation initiatives

• Digitelles Misr empowering young women

through digital and professional skills

development

• Growing capabilities across AI, digital

transformation, engineering and business

services

2 Viewpoint

11 Editor’s Note

Cover Design:

Nessim Nawar

September 2026

VOLUME 43 | ISSUE 9

Cover Story

18 Feeling the heat

The race is on to

reinvent air

conditioning and

climate-proof cities

before soaring cooling

demand triggers a

new energy and

environmental crisis.

In Depth

14 Beyond the game

Can sports become Egypt's

next growth industry?

Market Watch

38 Small caps steal the

show

Regional Focus

28 Africa’s growing

middle class

Africa is witnessing a growing

middle class, with rising

consumption and aspirations

for a better life. For Egyptian

businesses, that can only be a

good thing.

The Newsroom

12 In Brief

A round-up of the latest

local news.

Business Reads

34 Get smart, emotionally

In his book “Emotional Intelligence: Why

It Can Matter More Than IQ,” Daniel

Goleman argues that understanding

one’s own and others’ emotions is

crucial for success.

Media Lite

48 A glance at

the press

The Chamber

44 Announcements

In Person

40 Expanding

access

EGX Executive

Chairman Omar

Radwan shares how the

Egyptian Exchange

works to deepen

liquidity, diversify

products and attract

new investors.

Legal View

32 Egypt’s data

protection countdown

What Companies Must

Do Before Nov. 1, 2026

Throughout this issue, you’ll nd a single connecting thread: the region’s

drive to adapt and reinvent in the face of complex challenges. Traditional

physical, economic, and psychological models are being radically

reimagined to build lasting structural resilience.

As heatwaves intensify, soaring demand for air conditioning threatens

power grids, necessitating next-generation, high-efciency cooling

technologies. Simultaneously, cities must prioritize passive, heat-resistant

retrots of existing properties to enhance climate resilience.

Egypt's sports sector is transitioning from social clubs to business brands

under a national strategy aimed at achieving a 3% contribution to GDP by

2032. Entities like Al Ahly Football Co. are leading the way by leveraging

digital transformation and regional fan bases to diversify revenue streams.

To deepen liquidity and mobilize domestic savings, the Egyptian

Exchange is introducing new products such as exchange-traded funds

and index futures. Executive Chairman Omar Radwan outlines how these

reforms aim to foster a disciplined, incremental retail investment culture

for long-term wealth.

Africa's expanding middle class, driven by rapid urbanization and a

young demographic, is boosting consumer demand across the continent.

This economic growth creates vast opportunities in thriving sectors such

as retail, real estate, ntech, and healthcare.

True professional success requires strong internal capacity, as highlighted

by Daniel Goleman's book on the power of emotional intelligence. Effective

leadership depends on balancing the rational and emotional minds

through self-awareness, empathy, and emotional self-control.

Retrotting businesses, markets, and minds to navigate a volatile world

has become the dening challenge of the decade.

The stories and analysis in this issue invite readers to consider a broader

spirit of adaptation, one that is shaping our collective future.

ARCHITECTING CHANGE

TAMER HAFEZ

Managing Editor

Editor’s Note

Director of Publications & Research

Khaled F. Sewelam

Managing Editor

Tamer Hafez

Contributing Editor

Kate Durham

Consulting Editor

Bertil G. Peterson

Writer

Rania Hassan

Chamber News Coordinator and Writer

Susanne Winkler

Digital Editor

Ola Noureldin

Executive Creative Director

Nessim Nawar

Graphic Designer Team Leader

Marina Emad

Senior Graphic Designer

Monica Mokhles

Graphic Designers

Naglaa Qady

Malak Hashad

Photographers

Soha El Gabi

Said Abdelmessih

Market Watch Analyst

Amr Hussein Elalfy

Chamber Contact

Azza Sherif

Director of Business Development

Amany Kassem

Senior Business Development Specialist

Omar Zain

Business Development Specialist

Dana Shawky

Please forward your comments or suggestions to the Egypt editorial office:

Business Monthly

American Chamber of Commerce in Egypt

33 Soliman Abaza Street, Dokki 12311 • Cairo • Egypt

Tel: (20-2) 3338-1050 • Fax: (20-2) 3338-0850

E-mail: publications@amcham.org.eg

www.amcham.org.eg/bmonthly

U.S. address: 2101 L Street, NW Suite 800 • Washington, D.C. 20037

@BusinessMo

nthly

@BusinessMonthly

IMF FLAGS FINANCING AS KEY VULNERABILITY

Despite

improving

macroeconomic

conditions

and

continued

International

Monetary

Fund

(IMF)

support,

Egypt’s

)nancing needs remain a serious economic

vulnerability, according to the IMF’s seventh

review of the country’s reform program.

The review, which unlocked a $1.8 billion IMF

disbursement earlier this month, said Egypt

entered the current period of regional instability

in a stronger position than in previous crises,

supported by exchange-rate reform, stronger

external buffers, and )scal consolidation.

The IMF nevertheless highlighted the scale

of the country’s )nancing needs, projecting

them to peak at 42% of GDP in FY2025/26.

Public debt is expected to reach 91.1% of GDP

this )scal year, then gradually decline to

below 75% by 2031, driven by sustained

primary budget surpluses.

Authorities

are

working

reduce

re)nancing risks by extending the maturity

pro)le of government debt. The average

maturity of new debt issuances rose to 1.1

years by the end of June, its highest level in

three years. The government has committed

to increasing long-term bond issuance and

reducing reliance on short-term )nancing.

The IMF review welcomed progress on

Egypt’s privatization program, which had

generated over $500 million.

THE

NEWSROOM

NTRA TESTS SUPER-FAST UPPER 6 GHZ MOBILE SPECTRUM

The National Telecommunications Regulatory

Authority (NTRA) has conducted a trial of the

upper 6 GHz band, achieving data transfer

speeds of 1.7 Gbps per user. The trial was

conducted in partnership with Telecom Egypt

and Huawei, according to an of)cial statement.

The test involved operating a mobile base

station and successfully completing a data call.

The trial remains experimental and does not

signal a commercial launch of services on the

spectrum. Instead, it is intended to evaluate

the band’s potential for future mobile network

expansion and advanced digital applications.

According to the NTRA, the upper 6 GHz

band could support emerging technologies

that require greater network capacity and

faster

data

speeds,

including

arti)cial

intelligence applications, internet of things

services, cloud computing, and virtual and

augmented reality platforms.

The

initiative

separate

from

the

government’s

$3.5

billion

spectrum

agreement with Egypt’s four mobile network

operators. Announced in February, that deal

provides operators with an additional 410 MHz

of spectrum across the 1.8 GHz, 2.6 GHz and 3.5

GHz bands.

Under the NTRA’s spectrum roadmap, the

frequencies allocated will remain assigned to

operators through 2039.

The Ministry of Petroleum and Mineral

Resources aims to add about 370 million

cubic feet per day (cf/d) of production from

nine new wells, according to a government

official speaking to Al Arabiya. About 110

million cf/d of the new output is expected

to offset declines at existing fields, resulting

in a net addition of roughly 260 mmcf/d.

Three of the wells are scheduled to come

online in August and September, with the

remaining six expected to be connected in

the fourth quarter of 2026.

The development program spans key

producing regions, with five wells in

deepwater Mediterranean fields and four

in the Gulf of Suez and the Nile Delta.

The nine-well initiative is part of the

government’s strategy to increase natural

gas production by 1 billion cfd per day by

the end of 2026. While domestic output

stood at 3.9 billion cf/d earlier this year,

production from existing fields continues

to decline by about 120 million cf/d each

month.

MINISTER PUSHES FOR AFRICA INVESTMENT COORDINATION

Foreign Minister Badr Abdelatty has renewed calls for the creation of a dedicated vehicle to

coordinate Egyptian investments across Africa, aiming to bring government entities,

banks and private-sector )rms under a uni)ed framework to support expansion

across the continent.

The proposed platform would help identify investment opportunities and

create a centralized database of priority projects for Egyptian investors. While

the idea had been raised previously, authorities have yet to provide details on

the vehicle’s structure, funding model or implementation timeline.

The proposal comes as Egypt steps up its commercial and logistics presence in East

Africa. Recent initiatives include Orascom Investment Holding’s planned Egypt-Kenya trade

platform, maritime cooperation with Eritrea, logistics and energy projects in Djibouti, and plans

to strengthen shipping and industrial ties with Tanzania.

The move reects Cairo’s broader strategy to deepen trade, investment and supply-chain links

across African markets while creating growth opportunities for Egyptian companies.

NINE NEW WELLS EXPECTED TO BOOST GAS OUTPUT

SOVEREIGN RISK PREMIUM

DECLINES

The spread on Egypt’s sovereign U.S. dollar bonds over

comparable U.S. treasuries narrowed to 322 basis points at the end

of last week, according to JPMorgan data cited by Bloomberg. The

spread has tightened by about 150 basis points since March and nearly

12 percentage points from levels seen three years ago, when concerns

over external )nancing and debt sustainability were far more acute.

The improvement has coincided with strong debt-market performance.

Egyptian sovereign bonds have returned more than 10% since the end of

March, outperforming the broader emerging markets average of 3.2%.

Meanwhile, )ve-year sovereign credit default swaps, a key measure of

default risk, have declined by 162 basis points to 269 over the same

period.

Analysts attribute the stronger market sentiment to record foreign

currency reserves, continued IMF support, robust remittance inows,

resilient tourism revenues, and a more exible exchange-rate regime,

all of which have helped strengthen Egypt’s external position.

According to investors cited by Bloomberg, Egypt is increasingly

viewed as reform-oriented and as having high-yield credit rather than

as a sovereign facing acute external )nancing stress.

W O R T H F O L L O W I N G

In-Depth

Can sports become Egypt's next growth industry?

By Rana Salem

Beyond The GAME

In-Depth

For decades, sports in Egypt have been measured

largely by trophies, victories and television audiences.

Globally, the sports business has evolved into a major

economic sector valued at about $600 billion,

according to PwC’s Sports Survey 2023. It generates

revenue from broadcasting rights, sponsorships,

merchandising, digital platforms, licensing, tourism

and intellectual property.

That raises an important economic question for Egypt:

Can one of the country’s strongest cultural assets

become one of its next growth industries?

With two of Africa’s most recognizable soccer clubs,

expanding sports infrastructure and a strategic location,

Egypt has many of the ingredients needed to build a

larger sports economy. Industry leaders argue that

unlocking this potential will require governance reform,

stronger commercial management and a shift in

mindset, from treating clubs as sporting institutions to

viewing them as business brands capable of generating

value year-round.

Social club to a business

Offering the government’s perspective, Mostafa Magdy,

assistant to the minister of Youth and Sports for

Planning, Monitoring and Information, said recent

reforms should be viewed within the framework of

Egypt’s National Youth and Sports Strategy 2025–2032.

The strategy aims to strengthen governance and

increase sport’s contribution to the national economy.

Egypt plans to raise the sector’s contribution to the

gross domestic product (GDP) to 3% by 2032, supported

by governance reforms that improve transparency,

accountability, and institutional performance, thereby

making sports organizations more attractive to investors

and commercial partners. One of the biggest challenges

is sport’s institutional structure.

Osama Abdelkarim, academic director of the school of

sports management at ESLSCA University, argues that

Egyptian clubs must move beyond their traditional

membership-based model to compete internationally.

Rather than relying primarily on sponsorships and

sporting success, clubs need professionally managed

business structures capable of generating diversi4ed,

sustainable revenue.

Most Egyptian clubs were established as nonpro4t

associations governed by elected boards, limiting their

ability to attract investment or raise capital.

For Abdelkarim, reform goes beyond changing

ownership structures. Clubs also need to recruit

specialists

sports

management,

4nance,

marketing, digital transformation, strategic planning,

and sports law. Strong governance, he argues, should

prioritize

measurable

performance,

4nancial

transparency, independent auditing, long-term

planning, and risk management.

These

practices

can

strengthen

operational

performance while giving investors greater con4dence

that clubs can sustain commercial growth over the

long term.

While initiatives such as Al Ahly Football Co. mark an

important step toward separating football operations

from club management, broader governance reforms

will likely be needed.

Sports economy

Government reforms also extend beyond professional

clubs. According to Magdy, Egypt’s vision is to develop a

comprehensive

sports

economy

spanning

manufacturing, technology, sports medicine, 4tness

services, sports tourism, academies, event management,

digital platforms, and sports services. The objective is to

encourage investment across the entire sports value

chain rather than concentrating solely on clubs or major

tournaments. Equipment manufacturers, rehabilitation

centers,

software

developers,

event

organizers,

broadcasters, and tourism operators all stand to bene4t

from a more commercially mature sports sector.

To encourage greater private-sector participation,

amendments to the Sports Law, along with the

establishment of the Licensing Of4ce for Sports Services

and Sports Investment Companies, have simpli4ed

licensing and created a clearer legal framework for

sports investment. According to Magdy, these reforms

are intended to speed up and make investment more

ef4cient while reducing administrative barriers that

previously discouraged private capital.

Branding the game

Established in 2022 to manage the club’s commercial

operations, Al Ahly Football Co. is one of Egypt’s most

signi4cant attempts to separate sporting activities from

commercial management. The company was created to

diversify revenue, attract strategic investment, and

unlock new commercial opportunities.

“At Al Ahly, our strategy is to view the club not only as

a football team but as a powerful brand with a very large

and passionate fan base,” says company CEO Nayera Ali.

The scale of Al Ahly’s commercial ambitions is re ected

in its 4nances. In September 2025, the club’s board of

directors approved a record EGP 8.549 billion ($169

million) budget for the 2025/26 4scal year and reviewed

the performance and future strategy of its four

investment companies.

While sponsorship remains important, Ali says the

club is expanding into digital platforms, media and

content rights, merchandising, licensing, academies,

international partnerships, and new fan experiences.

International friendlies, overseas competitions, and

collaborations with global brands are viewed as

commercial opportunities rather than purely

sporting events.

“The key is to monetize the strength of the brand

without losing the connection and trust we have with

our fans,” says Ali. “The opportunity is de4nitely there. The

challenge is converting popularity into sustainable and

diversi4ed revenue.”

Beyond local audiences

That view is shared by Jailan El-Bous, head of the

Sport Communication Module (FIFA/CIES/CU) at the

Arab Academy for Science, Technology and Maritime

Transport. She argues that Egyptian clubs already

possess one of their strongest commercial assets:

regional audiences. “Al Ahly and Zamalek have the

largest fan bases in Egypt. Are they aware that they

also have signi4cant fan bases across the Arab

region? De4nitely.”

However, clubs often remain too focused on domestic

audiences. According to El-Bous, the challenge is not

attracting fans but packaging content professionally.

“The audience already exists. The missing part is

packaging the content professionally and giving

regional fans a reason to pay for it.”

She believes clubs should produce multilingual

content,

documentaries,

behind-the-scenes

programming,

premium

memberships,

and

regional

streaming

partnerships

designed

specifically for audiences across the Arab world,

rather than limiting commercial efforts to

domestic supporters.

The new stadium

Both experts identify digital transformation as perhaps

the sector’s greatest commercial opportunity. Ali

believes technology enables clubs to build direct

relationships with supporters year-round. Digital

memberships, exclusive content, e-commerce, loyalty

programs, personalized experiences, and data-driven

partnerships all represent potential revenue streams.

Equally important, digital platforms can provide

valuable insights into fan behavior. El-Bous believes

successful digital strategies depend less on technology

itself than on storytelling. “Sport is about emotions, after

all,” she says. “Fans do not only follow results; they want

to feel close to the players, the history, and the identity of

the club.”

Rather than functioning simply as news portals, club

platforms

should

become

comprehensive

fan

ecosystems that offer exclusive interviews, dressing-

room content, ticketing, merchandise, loyalty programs,

interactive polls, and multiple membership tiers that

deepen supporters’ sense of belonging.

Abdelkarim

similarly

argues

that

digital

transformation should extend beyond social media.

Customer relationship management systems, AI-

powered fan engagement, integrated ticketing, digital

payment platforms, personalized advertising, and data

analytics enable clubs to better understand supporters

and create new commercial opportunities. Rather than

being a communications tool alone, technology is

increasingly becoming the backbone of modern sports

business models.

Monetizing local fans?

Turning engagement into revenue remains one of the

sector’s biggest challenges. For decades, Egyptian

supporters have consumed football largely through free

television and unauthorized streaming, creating

expectations that content should be free.

Rather than charging for content already available

elsewhere, El-Bous believes clubs should offer exclusive

experiences unavailable through traditional media. She

points to Zamalek’s paid digital app as evidence that

supporters are willing to pay when clubs strengthen

their emotional connection with fans.

Abdelkarim

believes

Egyptian

clubs

should

fundamentally rethink how they view supporters,

treating them not as occasional spectators but as

lifelong customers.

Membership programs, loyalty schemes, personalized

experiences, premium subscriptions, and exclusive

content all deepen fan engagement while generating

recurring revenue. The stronger the emotional

relationship

with

supporters,

the

greater

the

opportunities to increase spending on merchandise,

tickets, digital products, and sponsorship activations.

Exporting talent

Beyond monetizing existing audiences, experts

argue that Egypt should also treat athlete

development as a strategic export industry.

According to Abdelkarim, the country’s large

population and deep sporting culture provide a

natural

competitive

advantage,

but

youth

development should be treated as a commercial

investment. Building stronger talent-identification

systems, investing in high-performance academies,

In-Depth

and integrating sports science, coaching, athlete

education, and performance analytics would

improve both athletic quality and commercial value.

International partnerships are equally important.

Strong

relationships

with

overseas

clubs,

academies, and player agencies can provide

Egyptian athletes with clearer pathways into

international markets while enabling domestic

clubs to generate income through transfer fees,

performance incentives, and sell-on clauses.

Technology also plays an increasingly important

role. Artificial intelligence-assisted scouting, digital

recruitment platforms, and performance analytics

can help identify talent earlier and make Egyptian

athletes more visible to international clubs.

Although football naturally dominates attention,

Abdelkarim believes Egypt should broaden its

commercial ambitions to include sports where it

has already achieved international success, such as

squash, handball, volleyball, and swimming.

Building investor confidence

Commercial growth also depends on attracting long-

term investment. El-Bous believes that improving

communication is as important as improving

4nancial performance. “We should start by branding

the Egyptian sports ecosystem itself, because it is not

only about individual clubs,” she says. “It is about the

overall image of the sports industry.”

She points to Saudi Arabia as an example of how a

clear

national

strategy

has

strengthened

international perceptions of its sports sector.

Transparent governance, professional reporting, and

consistent communication are essential to reassure

investors that they are entering a stable business

environment rather than simply associating their

brands with a popular football club.

Beyond the stadium

Industry leaders also see opportunities that extend well

beyond football. El-Bous believes Egypt should better

integrate sports and tourism, using internationally

recognized athletes and sporting events to strengthen

the country’s global image.

She cites international squash tournaments held

beside the Pyramids and Mohamed Salah’s worldwide

pro4le as examples of how sport already promotes

Egypt. The challenge now is to transform these isolated

successes into a coordinated national strategy.

She argues for developing a joint sports-tourism

calendar that brings together sports federations, tourism

authorities, airlines, hotels, sponsors, and athletes,

enabling major sporting events to generate sustained

tourism demand rather than temporary media

attention. “The key,” she says, “is turning individual

moments of attention into a consistent national brand.”

She also believes major investments, such as

Egypt International Olympic City, a sports complex

in the New Administrative Capital, should be

marketed as year-round business ecosystems rather

than venues used only during major tournaments.

International academies, broadcasters, sports

technology companies, rehabilitation centers,

conferences, educational programs, and innovation

hubs could all generate ongoing economic activity.

Communicating these opportunities consistently

would help reposition the Olympic City as a

permanent regional sports business destination

rather than simply an event venue.

Looking ahead

Magdy says the government’s next priority is

implementation. With much of the legislative

framework in place, the focus now shifts to

strengthening governance, expanding public-

private partnerships, supporting innovation and

entrepreneurship, encouraging sports technology,

promoting local manufacturing, and creating an

integrated ecosystem that attracts investment

across all segments of the sports industry.

Reliable economic data, including Egypt’s Sport

Satellite Account, a statistical framework under

development

the

Institute

National

Planning, will also play an increasingly important

role in evidence-based policymaking.

“The government’s role is to provide the right

regulatory environment,” Magdy says. “The private

sector will be the engine that transforms

opportunities into sustainable economic value.” n

In-Depth

Cover Story

FEELING

THE HEAT

Cover Story

As heatwaves intensify, global demand for air conditioning is

soaring. Europe, the world’s fastest-warming continent, has

become a major new market for cooling sales.

But rapid adoption poses a critical challenge: traditional AC

units

risk

overwhelming

power

grids

and

causing

environmental damage by increasing fossil fuel use.

To avoid a "cold crunch," researchers and manufacturers are

racing to develop next-generation cooling technologies. These

include improving compressor efficiency, switching to

environmentally friendly cooling gases such as carbon dioxide,

and aligning high-efficiency AC systems with solar power.

Such advances can significantly shrink communities’

environmental footprints.

At the same time, future-proofing cities means adopting

passive, heat-resistant architecture. Thermal envelope

systems, solar protection and green infrastructure can

naturally stabilize indoor temperatures and reduce the urban

heat island effect. Since about 80% of 2050’s buildings already

exist, retrofitting homes and updating building codes are

essential for climate resilience.

By Tamer Hafez

In summer, overheated households in summer are

becoming a fact of life as temperatures continue to

rise year after year. “As extreme heat events become

more frequent and widespread, perceptions of cooling

are shifting, driving more consumers to consider

purchasing an air conditioner (AC),” noted a June

paper from the International Energy Agency (IEA).

“The number of [those] purchasing their ;rst AC unit

will reach new highs in the years ahead.”

For manufacturers, that should be a boon for

business. However, signi;cantly more ACs will put

mounting pressure on national power grids. “Growing

electricity demand for air conditioning is one of the

most critical blind spots in today's energy debate,” said

IEA Executive Director Fatih Birol in a July paper.

That

requires

governments

accelerate

investment in electricity generation amid growing

geopolitical volatility affecting oil-exporting GCC

nations and a growing need to invest in renewable

energy infrastructure.

AC adoption

Demand for AC units has risen noticeably over the

past ;ve years, as “the world has experienced some of

the hottest years on record,” noted the IEA paper.

A June report from the U.S. National Centers for

Environmental Information (NCEI) said, “Global

surface temperature was 1.09° C above average … This

value was 0.09° C below the 2024 record and only

0.02° C above June 2023.”

“The 10 warmest Junes on record have all occurred

since 2015, with each of the last eight years (2019 to

2026) ranking among them,” the NCEI noted. “This

[June] marked the 50th consecutive June with global

temperatures above the 20th-century average.”

Augmenting demand is “rising incomes in many

economies with hot climates and record-breaking

heatwaves in regions that previously had only limited

cooling demand,” noted the IEA. In 2025, “AC unit

shipments [were] 25% higher than they were ;ve years

ago, fueled by growth largely in emerging and

developing economies.”

Furthermore, falling prices coupled with elevated

inventories suggest that the number of households

purchasing their ;rst AC units will reach new highs in

the years ahead,” according to the IEA.

Not all markets are growing equally. While Global

South nations (a term used to identify lower- and

middle-income countries) dominate sales, their

demand for new AC units grew by only 10% from 2024

to 2025, the IEA noted. “In 2025, demand softened in

several markets as India experienced unseasonal

rainfall, and milder summer temperatures reduced

cooling needs across parts of Southeast Asia and Latin

America.”

Real growth (about 40% in 2025 versus 2024),

according to the IEA, occurred in “the United States

and Europe.” Where summer temperatures typically

hover between 20°C and 25°C, this July they reached

46°C in Italy and the northern U.S. state of Montana.

Further fueling demand is that the farther north a

country is, the hotter it feels. "If the comparison is based

solely on air temperature, the Gulf is unquestionably

hotter," Al Ibrahim Al Jarwan, chairman of the Emirates

Astronomical Society, told Gulf News in August. "But

when it comes to thermal comfort in everyday life,

factors such as the sun's angle, length of the day, direct

solar exposure, building design, air conditioning and

lifestyle can make European heatwaves feel more

exhausting, even at lower temperatures."

Hotter climate

The El Niño weather phenomenon is also pushing

global temperatures higher this year and is expected

to continue into 2027. The World Meteorological

Organization (WMO) said in a July press release, this

weather phenomenon “continues to intensify steadily

and is expected to dominate global climate patterns …

increasing

the

likelihood

above-normal

temperatures across much of the world.”

The WMO forecasts the peak of El Niño will occur

from August to October. During that time, “seasonal-

average sea-surface temperature anomalies … should

exceed 2.9°C in key monitoring regions.” That is well

above the 1.5°C above pre-industrial levels that the Paris

Agreement says is the threshold beyond which the

risks of permanent environmental damage rise sharply.

The WMO expects “the strongest signals of this

trend to extend across Africa, southern Europe, the

Arabian Peninsula, the Indian subcontinent, eastern

Asia, Central America, the Caribbean, Southern Africa,

much of South America and New Zealand.”

Beyond El Niño, which comes every two to seven

years, demand for AC units will only increase. “Without

decisive policy action, global energy demand for air

conditioning could triple by 2050,” noted a July report

from the ifo Institute, a major economic think tank

based in Germany. “While currently only 27% of

households have air conditioning, this share could rise

to 55% by 2050.”

STAYING COOL

Air conditioner manufacturing is booming worldwide thanks to a hotter climate. That puts

increasing pressure on national power grids, an urgent situation the government has to address.

Cover Story

Next global crunch?

Such rapid demand will inevitably strain electricity

grids. “AC use is expected to be the second-largest

source of global electricity demand growth after the

industry sector, and the strongest driver for buildings

by 2050,” the IEA noted.

Without a transformation of power grids or energy-

consumption caps on new cooling devices, Briol of the

IEA said the world could face a “cold crunch.” An

Organization

for

Economic

Co-operation

and

Development (OECD) report introduced two scenarios

for the future of energy consumption due to cooling

equipment.

The baseline scenario “assumes those who require

cooling, for climatic reasons, and become able to afford

it, will buy and use ACs, and that generation capacity to

power them will have to be built,” said the OECD report.

This case “also takes into account not just the

[environmental]

policies

and

measures

that

governments around the world have already put in

place to curb the growth in energy use, limit energy-

related emissions and improve energy ef;ciency, but

also the likely effects of announced policies, as

expressed in of;cial targets or plans.”

That scenario “represents a major shift from historical

'business-as-usual’ trends, which incorporate no

meaningful climate policy action,” said the report.

Under these assumptions, the OECD report forecasts

that AC demand will increase faster than for any other

cooling device, such as fans and evaporative coolers. By

2050, AC units will account for 50% of total demand for

cooling devices, up from 25% in 2016.

That means a signi;cant power draw, as ACs

consume 2,000% to 5,000% more electricity than

electric fans and 200% to 900% more than evaporative

coolers. “Globally, the total amount of capacity needed

to meet … cooling demand … is projected to jump 395%

from 850 megawatts in 2016 to 350 gigawatts in 2050,”

noted the OECD.

The second OECD scenario is “ef;cient cooling.” It

focuses on “making ACs more ef;cient, thanks mainly

much

stringent

Minimum

Energy

Performance Standards, to reduce the energy required

to meet future cooling needs.”

Accordingly, “the average energy performance of the

stock of ACs worldwide, as measured by the Seasonal

Energy Ef;ciency Ratio, [will] more than double

between 2016 and 2050 [compared to] the Baseline

Scenario,” the report explained. “Worldwide, the need

for additional capacity between 2016 and 2050 just to

meet the demand from ACs is 1,170 gigawatts in the

Ef;cient Cooling Scenario, compared with 2,500

gigawatts in the Baseline Scenario.”

That translates to $1.2 trillion in global investments in

new power infrastructure between 2016 and 2050.

“Taking into account operating and fuel costs in power

generation, as well as transmission and distribution

costs, the Ef;cient Cooling Scenario leads to total

cumulative cost savings of $2.9 trillion compared with

the Baseline Scenario,” said the report.

Adopting OECD’s second scenario is the only way to

achieve sustainability. According to the IEA, “A well-

designed and properly implemented set of policies can

redirect every country from a path of unsustainable

and unmanageable cooling energy demand growth to

a sustainable and affordable alternative.”

Cover Story

For those living in MENA countries, having air

conditioners (AC) in their homes is as essential as having

refrigerators, TVs, and furniture. But running ACs during

hot weather can quadruple monthly electricity bills

compared with the rest of the year.

According to Synergy Companies, an energy and

water ef;ciency contractor, cooling systems generally

consume 40% to 50% of the average household's

electricity. The second most energy-intensive devices are

water heaters, which account for 14% to 18%.

Generating enough electricity to power more ACs

running longer hours will require burning more fossil

fuels. In Egypt, for example, around 79% of electricity

generation relies on natural gas.

That further damages the environment, an often-

overlooked consequence of AC use. “When people

think about environmental impacts that need to be

tackled, it’s very rare that people think about cooling

services,” Shelie Miller, an environmental engineer at

the School for Environment and Sustainability at the

University

Michigan,

told

Knowledgeable

Magazine. “But it is an incredibly important issue that

isn’t really being addressed.”

This “issue” is increasingly important as the world gets

hotter. The National Centers for Environmental

Information, a U.S. agency, said June was the 50th

consecutive month in which temperatures have

exceeded their 20th-century average.

To ensure the AC market boom is sustainable,

manufacturers need to rethink their technologies and

approaches to reduce these devices’ power draw,

thereby indirectly reducing the environmental impact.

Stark reality

The environmental hazards of using air conditioners

came into the limelight in 2019 at the 24th U.N.

Conference of the Parties. At the time, the World

Economic Forum (WEF) projected that by 2050 “typical

window and split units used in most homes are set to …

account for 20% to 40% of the world’s remaining ‘carbon

budget’ (the most that can be emitted while still keeping

global warming to less than 2 degrees C above pre-

industrial levels).”

Another uncomfortable reality: “Unlike renewable

energy, whose cost has plunged in the past decade,

energy ef;ciency … costs more as the cheapest

methods are exhausted,” the WEF noted. Reducing

costs of ef;cient AC systems requires increasing

economies of scale, which reduce production costs

per unit, the WEF explained.

AC cooling gases are another major concern. They “often

have high global warming potential,” noted Miller of the

University of Michigan. “Even though we’re using a

relatively small amount of refrigerants, the impact of

refrigerants when they leak out into the atmosphere

ends up having a major impact on climate.”

Currently,

some

governments

and

manufacturers are adopting the Kigali Amendment,

announced in 2016, which aims to reduce emissions

of global-warming chemicals used in today’s cooling

systems by 80% by 2046.

Solutions

Focusing on improving the ef;ciency of existing AC

hardware could yield signi;cant environmental bene;ts,

as “the compressor technology at the heart of most AC

units has barely reached 14% of its theoretical maximum

ef;ciency (with most units in the 6%-8% range).” That

contrasts “with solar panels, which reached 40% of their

theoretical ef;ciency potential or LED lighting [which

topped] 70%,” noted the WEF paper.

The forum highlighted “credible pathways to [achieve]

ef;ciency,

both

hybridizing

existing

technologies and in the form of new systems being

developed in labs and research centers, such as

transferring heat between semiconductors, employing

magnetic ;elds and even ejecting heat into outer space.”

Another set of solutions involves ;nding new cooling

gases. “Carbon dioxide … can be used as an alternative

refrigerant,” noted Miller. “Unlike many common

refrigerants that can have greenhouse gas potentials …

any CO2 that leaks from these cooling systems has

minimal warming potential.”

Miller also stressed the importance of integrating

cooling solutions into building design and construction.

“The most ef;cient kinds of air conditioning are

centralized systems that will heat entire buildings and

residences,” she said.

The problem with such solutions is that they are “often

offered at a price point that is outside of the consumer’s

ability to pay and which requires massive retro;ts of

existing buildings,” noted Miller. In most cases, they are

also expensive to install in existing buildings.

Certi;cation is another pathway to expanding

production of more ef;cient ACs. “The International

Organization for Standardization (ISO), … which develops

international standards for testing and rating air

conditioners and heat pumps, is steadily building toward

more representative real-world performance evaluation

approaches,” RMI, a climate energy nonpro;t, noted in

STAYING COOL: A HOT TOPIC

Rising household demand for air conditioners amid increasingly hot summers could indirectly

harm the environment. It’s time to rethink how these devices are designed and function.

Cover Story