Fitch Ratings upgraded Egypt’s long-term foreign-currency Issuer Default Rating (IDR) from B- to B with a stable outlook on Friday, 1 November. The agency cited the recovery in Egypt’s net foreign asset position, supported by a rise in international reserves from USD 11.4 billion (EGP 555.42 billion) in March to USD 44.5 billion (EGP 2.17 trillion) by the end of the third quarter of 2024. This improvement reflects growing investor confidence, driven by substantial foreign investments, including the USD 24 billion (EGP 1.17 trillion) Ras El-Hekma project and backing from Gulf Cooperation Council (GCC) nations. The rating upgrade aligns with recent positive evaluations from other agencies, including Standard & Poor’s, which affirmed Egypt’s ‘B-/B’ rating with a positive outlook over the past two weeks. Fitch expects foreign direct investment (FDI) inflows to average USD 16.5 billion (EGP 803.90 billion) annually over the next two fiscal years, supported by strategic projects and investment from Saudi Arabia and the UAE. Despite projections that the current account deficit will widen to 5.4 percent of GDP in FY2024, it is expected to narrow to 4 percent by FY2026, supported by a gradual recovery in…
