The IMF has upgraded Egypt’s growth outlook for FY2025/26 and FY2026/27, as rising remittances and stronger foreign reserves support the economy. Inflation and a widening current-account deficit remain key challenges. Egypt’s economy is projected to grow 5.1% in FY2025/26 and 4.7% in FY2026/27, according to the International Monetary Fund’s (IMF) October 2026 World Economic Outlook. The revised forecasts improve on the Fund’s July projections, although persistent inflation and external imbalances continue to pose risks. The IMF raised its growth forecasts from 4.6% to 5.1% for FY2025/26 and from 4.4% to 4.7% for FY2026/27, increases of 0.5 and 0.3 percentage points,…
Author: Rana Salem
Randa Hamed of OKAZ Asset Management attributes the market’s sharp retreat to geopolitical uncertainty, profit-taking and competing IPO subscriptions, while linking dollar pressure to wider investor anxiety and capital outflows. Egypt’s benchmark EGX 30 fell below 50,000 points on Sunday, October 25, as selling pressure spread across the stock market. Investors faced mounting geopolitical uncertainty, profit-taking after earlier gains and initial public offerings (IPOs) competing for available liquidity. “This is panic selling,” Randa Hamed, managing director and board member of OKAZ Asset Management and a former board member of the Egyptian Exchange (EGX), told Business Monthly in exclusive commentary. Hamed…
Egypt’s healthcare spending has risen more than 12-fold since FY 2014/15, as universal health insurance expansion, pharmaceutical localization, and digital health create opportunities for private investment. Egypt allocated EGP 511 billion ($9.5 billion) to healthcare in FY 2026/27, up from EGP 42.4 billion in FY 2014/15, as the government expands health insurance coverage, upgrades medical infrastructure, and seeks greater private-sector participation. Speaking at an American Chamber of Commerce in Egypt (AmCham Egypt) luncheon on October 18, 2026, Health and Population Minister Khaled Abdelghaffar said the budget would need to double to accelerate progress toward universal health coverage and meet growing…
Annual urban inflation slowed for a second consecutive month in September, reaching its lowest level since February 2026. However, rebounding food prices and persistent housing costs continue to pressure household purchasing power. Egypt’s annual urban headline inflation fell to 13.9% in September from 14.5% in August, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). The rate remained above 11.9% in January 2026 and 11.7% in September 2025. Nationwide, annual inflation edged up to 12.8% from 12.7% in August, compared with 10.3% a year earlier. Monthly nationwide inflation accelerated to 1.5%, while urban prices rose 1.3%, up from…
Egypt’s non-oil private sector continued to demonstrate resilience in September, as businesses maintained recruitment and remained optimistic about future activity despite renewed pressure on demand and operating costs. The S&P Global Egypt Purchasing Managers’ Index (PMI) fell to 47.2 from 49.6 in August, reflecting a renewed deterioration in business conditions after a summer recovery. According to S&P Global’s October 5 release, the seasonally adjusted index fell below its long-run average of 48.2 and the 50.0 threshold separating monthly expansion from contraction. However, the reading remained above the 33.4 level historically associated with no change in annual real GDP growth, corresponding…
New Alamein hosted a series of cross-border agreements spanning automotive manufacturing, trade promotion, agriculture, pharmaceuticals, financial cooperation and education, as Egypt and its African partners sought to convert the continent’s economic integration agenda into projects and commercial partnerships. The inaugural Alamein Africa Business Forum, held in New Alamein from October 2 to 4, concluded with a series of agreements between Egyptian companies and institutions and their African counterparts, alongside a wider pipeline of proposed investments and financing initiatives. According to Egypt’s State Information Service (SIS), the forum was established following an African Union decision in February 2026 to create a…
Egypt’s economic recovery is expected to continue through 2027, with the European Bank for Reconstruction and Development (EBRD) forecasting real GDP growth of 4.6% in 2026 and 5.0% in 2027 in its September 2026 Regional Economic Prospects. The outlook comes as stronger activity in communications, trade, and petroleum refining is supported by rising foreign-exchange inflows and improving external buffers. The EBRD said Egypt and Jordan showed notable resilience during the first half of 2026 despite the economic impact of the conflict in the Middle East. The wider southern and eastern Mediterranean region, however, is projected to contract by 0.7% in…
Egypt’s Ministry of Finance is coordinating with the Ministry of Investment and Foreign Trade and the Ministry of Industry to establish two funds to support targeted activities and sectors, Finance Minister Ahmed Kouchouk said on September 27. Speaking at the Techne Summit for Entrepreneurship and Technology, Kouchouk said the proposed funds would help make government support more targeted and effective. He did not provide details on the sectors to be covered, the size of the funds, or their expected launch dates. The funds are part of broader measures to support economic activity while maintaining fiscal stability. Kouchouk said the Ministry…
Egypt’s private investment rose 32% in the latest fiscal year, following a 77% increase the previous year, as the government pushes ahead with fiscal reforms aimed at strengthening private-sector growth and improving the business environment. Speaking at the American Chamber of Commerce in Egypt’s luncheon, “Egypt’s Macro-fiscal Reform Agenda: Enhancing Competitiveness of the Economy and Private Sector,” on September 21, Finance Minister Ahmed Kouchouk outlined the government’s latest fiscal indicators and priorities for the next phase of reform. Private investment now accounts for 63% of total investment, making it the leading component for a second consecutive year. The government aims…
Egypt registered 5,022 newly established foreign companies during the first half of 2026, up 33.7% from 3,757 in the same period a year earlier, according to an infographic published by the Cabinet’s Media Center on September 16. The issued capital of newly established foreign companies also increased by 20.9% to EGP 21.4 billion ($412.07 million), compared with EGP 17.7 billion in H1 2025. The Cabinet’s Media Center attributed the increase to government efforts to improve the investment climate, simplify procedures, and attract international capital. Company formation and FDI The increase in foreign company registrations is an indicator of investor activity,…