Egypt PM says govt working to shield economy amid regional escalation

CAIRO – 26 March 2026: Prime Minister Mostafa Madbouly said on Thursday the government is working to safeguard Egypt’s economic stability amid escalating regional tensions and their global repercussions.

Chairing the weekly Cabinet meeting, Madbouly said the ongoing military developments in the region have had negative impacts beyond politics, affecting energy markets, supply chains, trade flows, financing costs and growth prospects.

He stressed that the government is closely monitoring developments to ensure stable supplies, enhance competitiveness and preserve economic gains achieved in recent years amid a highly volatile global environment.

Madbouly reiterated Egypt’s position calling for de-escalation and an end to current tensions, while condemning unjustified attacks on Arab countries and rejecting any actions that undermine their stability.

He affirmed Egypt’s readiness to provide all forms of support to maintain regional security and stability.

Structural Reforms, Investments

He added that the government is continuing structural reforms aimed at maintaining fiscal discipline and sound governance, rationalizing public spending, boosting revenues and reducing public debt.

These measures aim to strengthen the economy’s resilience amid ongoing challenges.

President Abdel Fattah El-Sisi has issued directives to shield the economy in light of the ongoing regional escalation. Read more from here.

The prime minister said efforts are also underway to attract more local and foreign investment, with ongoing engagement with investors to explain measures taken to contain the impact of regional developments.

Crisis Management Measures

Madbouly noted that the government’s crisis management committee continues to hold regular meetings to assess the fallout from the military escalation and review proposed measures.

He added that the committee has agreed on some measures that will be discussed during the Cabinet meeting today.

The prime minister also pointed to his meeting with the political affairs advisory committee, which highlighted a “state of uncertainty” over regional developments.

Discussions underscored the need to prepare for multiple scenarios in light of prospects for de-escalation and the potential for further escalation.

Reducing Energy Consumption

Separately, Madbouly said the government is implementing measures to rationalize electricity consumption across state institutions, with each ministry tasked with enforcing the steps within its remit.

He also directed officials to facilitate reconciliation procedures for building violations and streamline property registration processes for citizens.