CAIRO - 8 June 2026: Minister of Finance Ahmed Kouchouk said Egypt’s external financing needs for FY2026/2027 are expected to range between $8 billion and $9 billion.
He said more than half of the required financing will be covered through concessional development funding, while the government plans to raise around $4 billion from international markets.
Speaking at the 8th edition of the Portfolio Egypt 2026 conference, Kouchouk said the government does not expect any financing gaps during the next fiscal year, supported by clear funding sources and well-defined financing plans.
He added that Egypt’s financing strategy has become more diversified and flexible, allowing the government to meet its external financing needs more efficiently.
Kouchouk noted that the government is targeting the same level of international market financing as the current fiscal year, at around $4 billion. He said diversifying financing instruments and target markets has helped strengthen Egypt’s ability to manage its funding requirements.
He added that the Ministry of Finance is working with regional and international banks and financial institutions to develop new financing tools that can expand the investor base and reduce reliance on a single market or instrument.
Kouchouk said Egypt’s recent diversified issuances, including sovereign sukuk and panda bonds, have opened new markets for government debt instruments and enhanced the geographic and financing diversity of the country’s external borrowing portfolio.
He also said public debt management has become more dynamic, with the government closely monitoring global market developments and keeping several financing options ready in case of changes in international conditions.
The minister explained that using a wider range of financing tools aims to improve debt management flexibility, extend the average debt maturity, reduce refinancing risks, and offer investment products that suit different local and international investors.
On the state budget, Kouchouk said the government remains committed to the targets included in the draft budget for the new fiscal year, despite recent global geopolitical and economic developments. He added that precautionary measures have been taken to address potential risks without changing the main targets.
He said the draft budget was finalized and submitted to the House of Representatives in March, following coordination with around 620 budget entities. Exchange rate estimates were based on levels seen in February, while oil price assumptions were built on the average forecasts of international institutions and research houses.
Kouchouk said the new budget targets a primary surplus of 3.5 percent of GDP and aims to reduce the overall deficit to around 6 percent or slightly lower. General reserve allocations are also set to rise to 4.6 percent of total spending, compared to around 2.5 percent to 3 percent in previous years.
He said the higher reserve allocation is designed to provide fiscal space to respond to unexpected economic changes or external shocks, while maintaining the stability of Egypt’s fiscal indicators.
Kouchouk added that the government is adopting a more transparent approach to public finance management. The financial statement attached to the budget includes detailed analysis of how changes in oil prices, exchange rates, and interest rates could affect the deficit, public debt, and other fiscal indicators.
He also revealed that the government is preparing a four-year medium-term framework for the budget and fiscal policy, including clear paths for public debt, the deficit, and government revenues.
Kouchouk said the government aims to increase public revenues by broadening the tax base and improving collection efficiency, supported by digital transformation and structural reforms that bring more economic activity into the formal economy and improve tax compliance.
He added that the Ministry of Finance plans to finalize a medium-term tax policy and revenue strategy before the end of the year, offering investors and international financing institutions clearer visibility on Egypt’s tax policy direction in the coming years.
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