Qalaa Holdings’ Board of Directors has approved expanding its indirect stake in the Egyptian Refining Company (ERC), one of the group’s energy assets. The move will see Qalaa’s effective ownership rise from 13.0% to 27.1%, underscoring its long-term commitment to Egypt’s downstream sector.
The transaction will take place through Qalaa’s acquisition of a 55.4 % stake in New Age Refining, which will in turn buy the whole of QPI Egypt from Qatar Energy at face value. Because QPI Egypt holds a 25.4% indirect stake in ERC, this purchase doubles Qalaa’s overall ownership.
Both New Age Refining and  QPI Egypt are offshore investment holding vehicles created specifically to manage ownership stakes in the Egyptian Refining Company (ERC). The deal is set to close in December 2026, once all agreed terms and conditions are met.
ERC, located in Mostorod, produces 4.2 million tons (mmt) of liquid petroleum products annually, alongside 600,000 tons of petroleum coke and sulfur. Its entire output of refined fuels is sold to the Egyptian General Petroleum Corporation (EGPC) under a long-term supply contract, priced against international benchmarks.
In parallel, Qalaa’s board approved a capital increase from EGP 21.1 billion to EGP 25 billion through a rights issue to existing shareholders. The proceeds will be directed toward financing the ERC stake acquisition, repaying obligations to the Arab International Bank and other creditors, and partially exercising Qalaa’s right to repurchase shares in TAQA Arabia by acquiring approximately 5% of its total equity. The company aims to finalize the capital increase before mid-December 2026.
The board also appointed Baker Tilly as independent advisor to assess the fair value of the acquired shares in line with Article 44 of the listing rules, and Graviton Financial Advisory to prepare a fair value study for Qalaa’s share price under Article 48.
In July 2026, the ERC was reported to have run above its nameplate capacity and benefited from stronger refining spreads amid geopolitical volatility in global energy markets during 2025. The refinery posted US dollar‑denominated revenues of EGP 30.7 billion in the fourth quarter (Q4) of 2025 and reported no outstanding receivables, with EGPC current on all payments.
