Stronger investment appetite, falling bond yields signal confidence in Egypt’s economy: Kouchouk

CAIRO - 5 February 2026: Egypt’s Finance Minister Ahmed Kouchouk said the country’s investment environment has witnessed a noticeable improvement, driven by rising private sector participation and growing confidence in economic reforms.

 

During his remarks at the 9th Capital Markets Summit, Kouchouk highlighted the increasing number of companies operating in the Suez Canal Economic Zone as well as other industrial and investment areas nationwide. 

 

This expansion, he said, has played a key role in boosting and diversifying Egypt’s export base.

 

The minister revealed that the government has introduced new incentives to encourage major corporations to list and invest in the Egyptian Exchange, alongside measures to reduce administrative and financial burdens. These steps aim to expand the tax base, enhance service quality, and support sustainable economic growth.

 

Kouchouk stressed that authorities are working toward broader financial inclusion while maintaining lower risk levels and stronger returns.

 

He noted that higher demand for financial instruments has recently contributed to a decline in interest rates and inflation.

 

On public debt, the finance minister reaffirmed the government’s commitment to improving debt sustainability indicators. 

 

He said Egypt plans to cut external debt for budget entities by approximately $1–2 billion annually, while also extending debt maturities and diversifying financing tools to reduce overall borrowing costs.

 

He added that Egypt’s improving economic and fiscal performance has been positively received by international investors, leading to a roughly 4 percent drop in yields on sovereign international bonds. Building on this momentum, Egypt plans to issue $2 billion in international bonds by June 2026.

 

Kouchouk also pointed to strong demand for five-year bonds and announced plans to introduce retail bonds for individual investors. 

 

He concluded by noting that Egypt’s credit default swap costs have declined sharply, nearing levels seen in countries with higher sovereign credit ratings, underscoring growing investor confidence.