The Ministry of Finance on Saturday welcomed S&P Global Ratings’ decision to affirm Egypt’s sovereign credit rating at ‘B/B’ with a ‘stable’ outlook.
The move highlights Egypt’s commitment to flexible fiscal policies that support investment, growth and job creation while maintaining fiscal discipline and reducing public debt.
In a statement, the ministry said that proactive and consistent policies have strengthened the Egyptian economy’s resilience in the face of regional challenges.
It noted that the stable outlook reflects a balance between Egypt’s growth prospects and the continuation of economic reforms.
Manufacturing, telecommunications and tourism remain key drivers of growth, which is projected to reach 5.1 per cent in the 2025/26 financial year.
The ministry reaffirmed its focus on attracting foreign direct investment (FDI), diversifying growth drivers and increasing exports of goods and services.
It added that the private sector now accounts for 65 per cent of total investment and continues to record robust growth. S&P Global Ratings expects further expansion, supported by economic stimulus measures, streamlined procedures and greater policy certainty.
Despite ongoing challenges, Egypt achieved a primary surplus of 4.9 per cent of GDP, while the overall budget deficit narrowed to 5.8 per cent of GDP in the previous financial year.
Tax facilitation measures also helped raise the tax-to-GDP ratio to 13 per cent without imposing additional burdens on taxpayers.
The ministry acknowledged that high debt-servicing costs and financing needs continue to weigh on public finances, but said conditions are expected to improve as interest rates decline.
Exceptional revenues are being directed towards accelerating debt reduction.
According to the statement, the government aims to reduce public debt to 78 per cent of GDP by June 2027 and cut external debt by approximately $1–2 billion annually.
