COMPANIES · EGYPT
Key Facts
- —The country Egypt is the Arab world’s most populous country and home to Elsewedy Electric, a cable and power engineering group listed in Cairo.
- —Why it matters A US$2.2 billion contract is a large foreign win for an Egyptian contractor while the pound is weak and export earnings are prized.
- —Why now The joint venture signed the full construction contract this week, moving the Saudi project from early works into full-scale execution.
- —What happened An Elsewedy unit and China’s Sinohydro signed a contract worth about US$2.2 billion for Saudi Arabia’s Rabigh 2 power expansion, announced on Tuesday 13 October.
- —The numbers The gas-fired plant adds 2.3 gigawatts, is already more than 39% complete and is due to start commercial operation in May 2029.
- —What it means for you US holders of Egyptian shares or frontier funds may see the deal lift the group’s order book, but its share of the value is undisclosed.
- —Still open How the US$2.2 billion splits between the two partners, and the margins, financing and payment terms.
Elsewedy Electric, the Cairo-listed cable and power engineering group, is part of a venture that signed a contract worth about US$2.2 billion in Saudi Arabia. The deal, announced on Tuesday 13 October, will expand a gas power plant in Rabigh on the Red Sea coast.
For foreign investors, it shows an Egyptian company winning large infrastructure work in Saudi Arabia, a close US partner in the Gulf. It also arrives as Egypt’s currency weakens, which makes foreign earnings more valuable to the economy.
The group’s power projects arm, Elsewedy Electric PSP, will build the 2.3-gigawatt Rabigh 2 expansion with Sinohydro of China. Commercial operation is targeted for May 2029, according to the joint venture’s announcement.
What the Rabigh 2 Contract Covers
The engineering, procurement and construction contract was awarded by Al Mourjan Two for Electricity Company, the project company behind the expansion. TradeArabia, in a report republished by Zawya, said the company was set up by Acwa Power and Saudi Energy.
Acwa Power is a developer of power and water plants listed on the Saudi stock exchange under the code 2082. Its chief executive, Samir J Serhan, called the expansion “an important addition to Saudi Arabia’s power system”.
The scope is turnkey and covers design, engineering, procurement, construction, commissioning, performance testing, civil works and the link to the grid. The plant will use six Siemens SGT6-5000F gas turbines, two Siemens SST-5000 steam turbines and six heat recovery steam generators.
Work is not starting from zero, because it began under an earlier limited notice to proceed. Overall progress already exceeds 39%, and the partners report more than five million safe man-hours on site.
Hesham Hegazy, chief executive of the PSP unit, called the signing “a proud moment for our joint venture”. Peng Gang, president of PowerChina MENA, said Sinohydro was proud to bring its global construction experience to the partnership.
Sinohydro is a subsidiary of Power Construction Corporation of China, a state-owned builder known as POWERCHINA. The two partners have not said how the work and the money will be divided between them.
Why the Deal Matters for Elsewedy Electric
The group traces its roots to 1938, when the Elsewedy family started a small electrical equipment business in Cairo, according to its website. It trades on the Egyptian Exchange under the code SWDY.CA, the joint venture’s release states.
Saudi Arabia is familiar ground for the Egyptian contractor. In September 2024, an Elsewedy official told Al Arabiya that the company was building a US$800 million power plant in Rabigh with Siemens.
A contract of this size can fill an order book for years, which gives investors more visibility on future revenue. The risk is that large fixed-price power projects can suffer cost overruns, supply delays and penalty payments.
For Egypt, foreign contracts like this one bring in earnings from abroad while the currency is under pressure. The pound has weakened again this week, as covered in Egyptian Pound Slides Past 53 per Dollar.
The stabiliser is that the Saudi project already has momentum, with more than a third of the work done before the full contract was signed. That lowers the chance that the deal stalls at the start, a common problem for large plants.
Gulf money and Gulf contracts already play a large role in Egypt’s economy, alongside the United States, China and the IMF. That wider picture is set out in Egypt Foreign Powers 2026, Gulf, US, China and IMF.
What It Means for US Readers
US investors usually hold Egyptian stocks such as Elsewedy Electric through emerging and frontier market funds rather than directly. A large foreign contract can help sentiment, but the value to shareholders depends on margins that have not been disclosed.
The deal also shows Egyptian and Chinese contractors winning large power work in Saudi Arabia, a close US security partner. The main turbines, however, come from Siemens, a European supplier, not from a Chinese manufacturer.
For US companies selling into the Gulf, the project shows how Saudi power contracts tie builders to fixed timetables. Firms that supply services, spare parts or finance to such plants will watch whether the May 2029 target holds.
What Is Not Known
The share of the US$2.2 billion that belongs to the Egyptian partner, and its expected profit, have not been published. It is also unclear how the expansion relates to the US$800 million Rabigh plant with Siemens described in 2024.
The financing terms, the payment currency and the penalties for delays are not public. The release names May 2029 for commercial operation but gives no interim milestones.
The group’s disclosure to the Egyptian Exchange on the contract was not available for review. The figures here come from the joint venture’s release, as published by Zawya and Mubasher, and from TradeArabia’s report.
Frequently Asked Questions
What did Elsewedy Electric sign in Saudi Arabia?
Its power projects arm and China’s Sinohydro signed a contract worth about US$2.2 billion for the Rabigh 2 power plant expansion. The deal was announced on Tuesday 13 October.
How big is the Rabigh 2 expansion?
The gas-fired combined-cycle plant will add 2.3 gigawatts of capacity in Rabigh, on Saudi Arabia’s Red Sea coast. Commercial operation is targeted for May 2029.
Who awarded the contract?
Al Mourjan Two for Electricity Company awarded it as the project company. TradeArabia said the company was set up by Acwa Power and Saudi Energy.
Why does the deal matter to US investors?
US investors usually reach Egyptian stocks through emerging and frontier market funds. The contract can lift the order book, but Elsewedy’s share and margin are not yet public.
How far along is the project?
Work started earlier under a limited notice to proceed, and overall progress exceeds 39%. The partners also report more than five million safe man-hours.
Sources: Joint venture release, Rabigh 2 EPC contract, 13 October 2026 (via Zawya); Mubasher, Elsewedy-Sinohydro JV signs Rabigh 2 contract, 13 October 2026; TradeArabia via Zawya, Elsewedy joint venture secures US$2.2 billion project, 14 October 2026; Elsewedy Electric, company history; Enterprise, Elsewedy and Siemens Rabigh plant, 25 September 2024.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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