2026 to mark turning point for Egypt’s economy
Speaking to Bloomberg on the sidelines of the International Monetary Fund (IMF)–World Bank Group annual meetings, which kicked off on Monday, Al-Mashat said the government expects “real contributions from the real economy” next year, supported by remittances and a surge in foreign investment.
An Egyptian delegation, chaired by the governor of the Central Bank of Egypt (CBE), is attending the IMF–World Bank meetings in Washington through 18 October.
The discussions are expected to focus on completing the long-awaited fifth and sixth reviews of Egypt's current $8 billion loan deal, as well as the first review of the $1.3 billion Resilience and Sustainability Facility (RSF) programme.
Al-Mashat highlighted Egypt’s newly launched Narrative for Economic Development, which identifies priority sectors for attracting foreign direct investment. She said the strategy builds on the country’s robust infrastructure, developed in recent years to support manufacturing and exports.
Reform momentum despite regional tensions
The minister noted that Egypt responded flexibly to reduced traffic in the Suez Canal, caused by regional instability, by launching a new wave of economic reforms in March 2024.
These included fiscal consolidation, monetary tightening, a flexible exchange rate regime, and a cap on public investment. As a result, GDP growth reached 4.4 percent by the end of June and 5 percent in the final quarter.
Al-Mashat said growth was driven by a model focused on industrial output and tradeable sectors, with reforms boosting competitiveness and private-sector participation. She added that Egypt continues to implement a structural reform programme aimed at unlocking new investment and accelerating production.
Peace summit and canal recovery
Commenting on the Sharm El-Sheikh Summit for Peace, held on Monday, Al-Mashat described it as “a crucial day not just for the region, but for the world.” She said a sustainable settlement in Gaza would restore calm and allow shipping traffic through the Suez Canal to resume fully, an outcome that would benefit Egypt and reduce global trade costs.
Credit upgrade signals confidence
Al-Mashat also welcomed S&P Global Ratings’ recent upgrade of Egypt’s sovereign credit rating, calling it a sign that reforms are on the right track.
“There are significant growth opportunities if we continue implementing these reforms,” she said, adding that Egypt remains committed to opening the economy, boosting competition, and overcoming past challenges.
The minister pointed to strong investment flows into the Suez Canal Economic Zone (SCZone), including new capital and joint ventures, as evidence of growing investor confidence. She also reaffirmed Egypt’s engagement with the IMF and its partnerships with the European Union (EU) and World Bank (WB) to support its ambitious reform agenda.
Despite a difficult geopolitical landscape, Al-Mashat expressed optimism that the outcomes of the Sharm El-Sheikh summit would benefit Egypt’s economy and enhance returns for investors.