Standard Chartered: Egypt's Economy Shows Resilience amid Global Pressures
Despite mounting global economic headwinds, Egypt's economy continues to demonstrate notable resilience, according to a new report from Standard Chartered Bank, which praised the country's macroeconomic stability and rising investor confidence.
In its latest mid-year economic outlook, titled 'Global Focus – H2 2025 Forecasts', the bank highlighted Egypt as a standout among emerging markets, particularly as economic conditions remain volatile in major economies such as the United States, China, and the Eurozone.
'Egypt's macro stability supports strong foreign currency inflows from both portfolio and official sources,' the report stated, adding that these dynamics are 'enhancing market confidence in the Egyptian pound.'
Standard Chartered expects Egypt to receive more than 50% of the $12.5 billion in major investment pledges from Qatar and Kuwait by the end of 2025. These inflows are seen as a significant cushion for Egypt's foreign reserves and a testament to sustained interest from Gulf nations in Egypt's strategic sectors.
This comes amid a broader effort by Egyptian authorities to attract foreign direct investment (FDI) and bolster private sector involvement, as the country implements reforms under its agreement with the International Monetary Fund (IMF).
While the Central Bank of Egypt continues a monetary easing cycle aimed at spurring economic growth, the report noted that carry trade remains a key draw for investors, particularly after Egypt passed a key test regarding the convertibility and availability of foreign currency.
The report emphasized that Egypt's commitment to a more flexible exchange rate and recent currency adjustments have helped restore investor confidence in the Egyptian pound, even as global interest rates remain relatively high.
The IMF continues to call for stricter fiscal discipline and accelerated privatization efforts as part of Egypt's reform agenda. According to Standard Chartered, these measures are essential to ensure sustainable long-term growth and to broaden the base of foreign and domestic private investment.
Standard Chartered forecasts Egypt's GDP to grow by 4.5% in the 2025/26 fiscal year, underpinned by ongoing structural reforms and increasing private sector activity.
'Private investment is a key driver of Egypt's recovery,' the report noted, underscoring the country's potential as a resilient, reform-oriented economy in the Middle East and North Africa (MENA) region.
read more
CBE: Deposits in Local Currency Hit EGP 5.25 Trillion
Morocco Plans to Spend $1 Billion to Mitigate Drought Effect
Gov't Approves Final Version of State Ownership Policy Document
Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister
Qatar Agrees to Supply Germany with LNG for 15 Years
Business
Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves
Business
Suez Canal Records $704 Million, Historically Highest Monthly Revenue
Business
Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday
Business
Wheat delivery season commences on April 15
Videos & Features
Story behind Trending Jessica Radcliffe Death Video
News
Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters
Arts & Culture
"Jurassic World Rebirth" Gets Streaming Date
News
China Launches Largest Ever Aircraft Carrier
News
Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia
Business
Egyptian Pound Undervalued by 30%, Says Goldman Sachs
Videos & Features
Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall
Lifestyle
Get to Know 2025 Eid Al Adha Prayer Times in Egypt
Arts & Culture
South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle
Arts & Culture
Lebanese Media: Fayrouz Collapses after Death of Ziad Rahbani
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al-Ahram Weekly
10 hours ago
- Al-Ahram Weekly
Egyptian banks ease foreign currency, credit card restrictions - Economy
Major Egyptian banks have raised the foreign currency withdrawal limit for travellers to $10,000 or its equivalent in other currencies, according to notifications sent to customers on Tuesday. The banks include the state-owned National Bank of Egypt (NBE) and Bank Misr, as well as the Commercial International Bank (CIB). The previous withdrawal limits ranged between $2,000 and $5,000, depending on the bank and card type. Travellers can now withdraw the full $10,000 in cash before departure by presenting a valid flight ticket and visa. The new limit is in line with the country's maximum legal allowance for outbound travelers. Meanwhile, several banks are also lowering their foreign currency markup fees on credit card transactions. Both the NBE and CIB have cut their fees from 5 percent to 3 percent. Bank Misr has also announced a similar reduction to 3 percent, effective 13 August 2025. Additionally, Bank Misr has increased its foreign currency sale limit for travellers to $10,000, up from $5,000. The Arab African International Bank (AAIB) has also followed suit, raising its overseas credit card usage limit to a similar amount. In a related development, the Central Bank of Egypt scrapped requirements to verify a customer's travel abroad when using credit cards, citing current market conditions. Since late 2022, Egyptian banks have imposed strict limits on the use of credit and debit cards abroad to stem the outflow of foreign currency amid a deepening dollar shortage, a rapidly expanding parallel market, and mounting pressure on the pound. The most significant restrictions were introduced in 2023, when monthly overseas spending caps were drastically reduced. In some cases, these limits were as low as $50–$100 for regular customers and only a few hundred dollars for premium cardholders. Markup fees were also raised to 5%, and banks were required to verify customer travel before approving significant foreign currency transactions. These measures were closely tied to successive devaluations of the Egyptian pound in March and October 2022 and January 2023, which saw the currency lose over half its value against the dollar. With the pound's sharp depreciation of driving demand for hard currency, authorities sought to close loopholes that allowed customers to obtain dollars at the official rate via card use. The easing of these restrictions began only after the March 2024 devaluation, coupled with major foreign investment inflows, which improved dollar liquidity and allowed banks to gradually restore overseas card limits. Follow us on: Facebook Instagram Whatsapp Short link:
Daily News Egypt
11 hours ago
- Daily News Egypt
Egypt's Tourism Minister visits Bosnia to boost tourist arrivals
Egypt's Minister of Tourism and Antiquities, Sherif Fathy, has met with officials in Bosnia and Herzegovina to discuss ways to increase tourist traffic from the Balkan country to Egypt, the ministry said in a statement. Fathy held an expanded professional meeting in Sarajevo with senior officials from the Bosnian tourism sector, including representatives from tourism entities and cities, heads of tourism companies, hotels, and airports. During the meeting, the minister emphasised the importance of direct communication with tour operators as a key element in supporting inbound tourism to Egypt. He stated that the government is focused on creating infrastructure, improving the investment climate, and running promotional campaigns in targeted international markets. Fathy outlined the ministry's strategy, which focuses on promoting Egypt as a top global destination due to its diverse offerings, including cultural, beach, spiritual, and Nile tourism. He added that expanding hotel capacity is a current priority, with the goal of doubling the number of hotel rooms by 2030. This year, 18,000 new rooms are expected to be added, with 6,000 already in service since the beginning of the year. The minister also highlighted Egypt's hosting of international events and concerts in cities like New Alamein, Sharm El-Sheikh, and the Giza Pyramids area. He also suggested organising familiarisation trips for tourism company representatives and influencers from both countries, as well as tourism roadshows and workshops. Fathy's visit is the first official visit by an Egyptian minister to Sarajevo in 15 years. He began his trip by meeting with Bosnian Foreign Minister Elmedin Konaković to discuss strengthening bilateral cooperation. During that meeting, Fathy reviewed the positive performance of Egypt's tourism sector in 2024, which saw 15.8 million tourists, a 6% increase from 2023. He also mentioned the official opening of the Grand Egyptian Museum, scheduled for November 1. The two ministers expressed their readiness to advance cooperation, including promoting joint tourism investments, facilitating visa procedures, and increasing the number of direct flights. They also discussed potential cooperation in archaeology, leveraging Egyptian expertise in monument restoration and museum management.
Daily News Egypt
11 hours ago
- Daily News Egypt
State-owned Holdipharma targets EGP 18bn in revenues for FY2025/2026
Mohamed El-Shimy, Minister of Public Enterprises, affirmed that the pharmaceutical industry is a vital pillar of health security and a key driver of the national economy, stressing that its development within the ministry's affiliated companies is a strategic priority. His remarks came while chairing the General Assembly meeting of the Holding Company for Pharmaceuticals (Holdipharma) to approve the budget plan for the 2025/2026 fiscal year. During the meeting, Ashraf El-Khouly, CEO and Managing Director of Holdipharma, presented the board's report, which included the draft budget for the coming fiscal year. The plan targets consolidated revenues of EGP 18bn, a 131% increase compared to 2023/2024, and net profits of EGP 3.4bn—up 343%. The report also noted the growth in the market value of the group's listed companies. The meeting, attended by Board Chair Ahmed Hegazy, members of the General Assembly, and representatives of the Central Auditing Organisation, marked the final approval of all holding companies' and subsidiaries' budgets for the new fiscal year. Minister El-Shimy explained that the ministry is working to localise and deepen pharmaceutical manufacturing, transfer and apply the latest global production technologies, and enhance product quality to strengthen competitiveness in local, regional, and international markets. Development plans include upgrading production lines, increasing manufacturing capacity, adhering to the highest standards of sustainability, quality, and Good Manufacturing Practice (GMP), ensuring occupational health and safety, and optimising the use of assets, capacities, and resources. He added that human capital development is central to achieving these targets, through specialised training and qualification programmes that encourage innovation and advance scientific research, alongside fostering partnerships with the private sector both domestically and internationally. These measures aim to increase production and export capacity, and open new markets to bolster the competitiveness of the national industry. El-Shimy stressed that reforming the financial structures of subsidiary companies is a top priority to ensure sustainable profitability and secure the resources needed for production expansion. He underscored the importance of updating organisational structures and management systems to meet current needs, while accelerating the implementation of the Enterprise Resource Planning (ERP) system to improve operational efficiency and ensure precise oversight of resources and production. The presentation also highlighted major projects and investment opportunities, including the production of biological drugs, insulin and biosimilars, dry powder inhalation tablets, active pharmaceutical ingredients (APIs), and hormones. It outlined partnerships with leading international companies, such as US-based Dawah, to produce and export products including ampoules, nutritional supplements, sterile injections, and sterile ophthalmic preparations. El-Shimy concluded by stressing the integration of economic, social, and environmental dimensions to ensure comprehensive sustainability in the company's activities. He called for promoting professional conduct, improving the work environment, and raising performance standards across all administrative and executive levels. He affirmed that the Ministry of Public Enterprises Sector is moving decisively towards modernising and restructuring its subsidiaries, striking a balance between profitability and sustainability, and enhancing Egypt's competitiveness regionally and globally. Holdipharma, he added, aims to achieve regional leadership in the sector, positioning Egypt as an advanced hub for pharmaceutical production and exports, meeting domestic needs while expanding into international markets.
