Kouchouk noted that the implemented economic and financial reforms, coupled with positive results like the private sector's "significant flexibility and responsiveness," had drawn appreciation from investors, global markets, and international institutions.
He said rating agencies have begun to raise their
assessments and future outlooks for the Egyptian economy, which is now being
reflected in improved creditworthiness ratings.
The Finance Minister said Friday that the decision by
Standard & Poor’s (S&P) to raise the country's economic rating for the
first time in seven years reflects global recognition of its national reform
programme. S&P upgraded Egypt’s rating to 'B' from 'B-' with a stable
outlook.
The Minister added that Fitch’s parallel decision to
maintain the rating it had raised last year, also with a stable outlook,
further underscored the commitment and positive impact of the government's
comprehensive economic reform measures. Kouchouk noted that the implemented
economic and financial reforms, coupled with positive results like the private
sector's "significant flexibility and responsiveness," had drawn
appreciation from investors, global markets, and international institutions. He
said rating agencies have begun to raise their assessments and future outlooks
for the Egyptian economy, which is now being reflected in improved
creditworthiness ratings.
Kouchouk said Egypt is committed to continuing its
comprehensive reform efforts to consistently address challenges and support
future growth and economic competitiveness.
He explained that completing the reforms and harmonising
policies will ensure continued economic stability and increasingly reflect positively
on the quality of life for citizens and the Egyptian economy’s ability to
compete internationally. The Minister described the positive steps taken by
rating agencies as a "certificate of confidence" from the
international financial community in the efficiency of the reform programme. He
stressed that this recognition contributes to greater confidence and support
for Egypt’s development path, which aims to achieve comprehensive stability,
enhance competitiveness, and attract more local and foreign investment.
Deputy Minister for
Financial Policies Yasser Sobhy said the positive view of the Egyptian economy
is being felt locally and in international forums.
He noted this perception is starting to be reflected in a lower
cost of funding in international debt issuances. It is also visible in the
growing interest from local and foreign investors in increasing both direct
investments and their holdings of Egyptian securities. Sobhy added that the
upgraded credit rating will help expand the investor base and reduce the
perceived risk of investing in Egypt. This, he explained, will enable continued
sustainable growth for the economy in the medium term.
Alaa Abdel Rahman, the Minister's Advisor for International
Financial Institutions, said the Ministry of Finance maintains continuous,
year-round contact with international financial institutions, development
banks, and credit rating agencies.
He explained that this constant dialogue is essential for
clarifying all developments in fiscal and economic policy. This work includes
presenting facts, providing supporting data, and responding to inquiries to
highlight positive economic developments, which is then reflected in the
assessments of the Egyptian economy.
S&P and Fitch had each issued a report, confirming that their decision is based on the continuation of structural reforms, the existence of a flexible exchange rate, increased foreign direct investment flows, improved external sector indicators, fiscal discipline, achieving a significant primary surplus of 3.6% in the last fiscal year, reducing government debt, and an increase in the growth rate to 4.4% in 2025 compared to 2.4% in 2024. This is in addition to increased economic flexibility, an improved investment environment, and enhanced private sector participation, whose investments saw a growth rate exceeding 70%, alongside financial reforms aimed at expanding the tax base, which saw a 35% growth rate in tax revenues without additional burdens, in light of the implemented tax relief package.