Resources

A massive fire at Cairo’s Ramses Central Exchange on July 7 disrupted internet, telecommunications, banking, and financial services across Egypt. Trading on the Egyptian Stock Exchange was suspended, while airports and railways experienced system outages. The building handles about 40% of the country’s local and international communication, making its shutdown deeply felt nationwide. Experts warned against relying on a single network hub and called for stronger business continuity plans, including backups, disaster recovery sites, and diversified service providers to prevent future paralysis.

Egypt’s GDP grew by 4.77 percent in Q3 of FY 2024/25—the highest in three years—up from 2.2 percent a year earlier. This brought the nine-month average to 4.2 percent, reflecting a steady recovery driven by non-oil manufacturing, tourism, IT, and rising private investment. Industrial output surged, led by strong gains in garments, autos, and exports. Despite global instability, including the Israel-Iran war, Egypt’s economy showed resilience and exceeded growth expectations.

Egypt is set to announce a significant investment project in Ras Shukheir, backed by a Gulf sovereign wealth fund and financed through innovative sovereign bonds. Unlike asset sales, these bonds securitise future revenues to reduce public debt. The project will focus on renewable energy, green hydrogen, tourism, and industry, positioning Ras Shukheir as a regional investment hub. However, experts warn that this strategy merely shifts, rather than erases, the country’s debt burden.

The Egyptian pound is on track for a historic rebound by the end of 2025, driven by soaring remittances, foreign investments, revived tourism, and a recovering Suez Canal. With $50 billion in projected reserves and landmark deals like Ras El Hekma fueling growth, Egypt’s economic reforms and currency liberalisation are restoring investor confidence. As the black market fades and hard currency flows in, the pound’s long-awaited stability now looks within reach.

Egypt plans to issue USD2 billion in sukuk in 2025 and fast-track the sale of military-owned companies through its sovereign wealth fund as part of its $8 billion IMF-backed reform drive. With IPOs expected by 2026, the government aims to boost private sector growth and attract foreign investment. However, global economic pressures—especially US tariffs and a strong dollar—threaten to strain Egypt’s debt-laden economy, potentially slowing inflation control and foreign capital inflows.