President Sisi's new term as President of Egypt has begun with a strong emphasis on implementing strategies to fortify the economy, enhance private sector participation, and achieve sustainable growth. Central to these efforts is the prioritization of key sectors such as agriculture, industry, information technology, and tourism. The government's ambitious goal is to achieve annual growth rates ranging between 6-8% by the end of President Sisi's third term.
A significant milestone in Egypt's economic trajectory is the successful securing of a USD 35 billion investment from an Abu Dhabi-backed group for a major real estate project at Ras El Hekma. This landmark investment is poised to address the country's financing gap over the next four years, providing a substantial boost to the economy and signaling confidence in Egypt's economic potential.
The influx of foreign exchange has been pivotal in bolstering Egypt's economic resilience. The Ras El Hekma agreement, which saw a tranche of USD 15 billion entering the country's coffers, coupled with a strategic decision by the central bank to float the Egyptian pound and raise interest rates by 600 basis points, has facilitated the return of liquidity to the official banking system. These measures have contributed to increased foreign reserves and enabled the central bank to settle outstanding dues, including clearing port backlogs and reducing arrears owed to international oil companies.
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