Egypt faces economic strain from regional tensions

Egypt is facing an extraordinary economic strain from external factors, particularly the ongoing regional conflicts, Egyptian Prime Minister Mostafa Madbouly has said.

The prime minister said this at a news conference in Cairo.

He said that within a week, crude oil prices increased by 10 per cent to over 80 U.S. dollars per barrel due to regional tensions.

The official said that the development added pressure on the country’s economy.

“We are facing challenges we are not responsible for, at all, but we have to deal with them due to their direct repercussions on us,” Madbouly said.

He said that Egypt was keen on achieving economic growth and attracting investments, noting international financial institutions had a positive outlook for Egypt’s economy.

He added that Egypt expected 675 million dollars in direct foreign investments, within weeks, from providing 5G licences to telecom operators.

Over the past few years, Egypt has suffered from shortage of foreign currency needed for imports, which led to devaluation of the local currency and inflation.

The inflation reached a record high of 38 per cent in September 2023 before it gradually declined to 25 per cent in September 2024.

The country has also recorded a financial push after it signed, in February, a 35-billion -dollar investment deal with United Arab Emirates to develop Ras Al-Hekma, a new resort on Egypt’s northern coast.