Egypt has scored a credit rating upgrade from S&P Global Ratings, while Fitch Ratings affirmed its call on the North African nation, with both citing improving economic growth following widespread reforms.
S&P boosted Egypt's long-term sovereign credit rating by one notch to 'B', with a stable outlook, it said in a statement on Friday. That is the New York-based firm's first upgrade since the country began receiving international financial support in March 2024.
“The stable outlook balances our view of Egypt’s improving growth prospects and improving balance of payments trends against continued high government deficits and debt, including external commercial obligations,” analysts at S&P wrote.
Any further upgrade would rely on Egypt's net government and external debt positions improving much faster than expected, possibly on higher foreign direct investment supported by the government's planned sale of state assets and the opening up of sectors to diversify the economy, they said.
S&P, however, cautioned that a downgrade is likely if the government’s commitment to reforms wanes and economic imbalances such as foreign currency shortages increase again.
“We could also take a negative rating action if the elevated interest costs prompt the government to undertake a debt exchange that we consider to be distressed, or if current geopolitical and tariff-related tensions impinge on Egypt's external market access and cost of debt,” it added.
Meanwhile, Fitch, which last upgraded Egypt in November 2024, maintained its 'B' rating on Egypt, also with a stable outlook, underpinned by a “relatively large economy, fairly high potential GDP growth, and strong support from bilateral and multilateral partners”.
A 'B' rating is highly speculative and considered junk status, and is five levels below investment grade, according to both S&P and Fitch's ratings scale. An investment-grade rating makes it easier for a country to access capital markets and raise funding when it seeks to borrow.
New York-based Fitch cautioned that risks to Egypt's economy include weak public finances, which include “exceptionally high debt interest/revenue”, in addition substantial external financing needs, high inflation and geopolitical risk.
Both S&P and Fitch cited Egypt's tourism industry as resilient, boosted by the government's reforms. It is one of the industries that S&P identified as key to economic improvement, alongside domestic demand, construction, information technology and communications, wholesale and retail trade, agriculture, and health care.
Tourism revenue, Fitch said, was up 16 per cent in fiscal year 2025. It added that Egypt also has a low direct exposure to US tariffs.
Egypt's economy has faced several challenges over the past few years, grappling with rising inflation, foreign exchange shortages and elevated debt levels.
The country has been stabilising, aided by an $8 billion loan package from the International Monetary Fund expected to boost the country's flagging economy, which has also been affected by the Israel-Gaza war.
Fitch said that the escalation of tensions between Egypt and Israel increased “only moderately” over recent months.
“Domestically, weak governance and high youth unemployment pose a lingering risk of greater social unrest and, together with the widespread role of the military, weigh on economic reform prospects,” Fitch said.
Last month, Prime Minister Mostafa Madbouly said that “the worst has passed” with regard to the country’s record high external debts, while record inflation figures have also started to ease.
Consumer prices fell in August, with the inflation level at 12 per cent, down from 13.9 per cent in July. The rate in August was the lowest since March 2022.
Egypt is also benefiting from more than $10 billion in additional funding from other multilateral donors, including €7.4 billion ($8.1 billion) from the EU.
The country was also able to secure a $7.5 billion investment package from Qatar in August, deepening bilateral co-operation across political and economic sectors.
Egypt’s construction market has also grown into the third largest in the Middle East and North Africa, with future projects valued at $565.5 billion, global property consultancy Knight Frank said in a July report.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Fifa Club World Cup:
When: December 6-16
Where: Games to take place at Zayed Sports City in Abu Dhabi and Hazza bin Zayed Stadium in Al Ain
Defending champions: Real Madrid
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
SPEC%20SHEET
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M2%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206%2C%20Bluetooth%205.0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Silver%2C%20space%20grey%2C%20starlight%2C%20midnight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%20or%2035W%20dual-port%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C999%3C%2Fp%3E%0A
2017%20RESULTS%3A%20FRENCH%20VOTERS%20IN%20UK
%3Cp%3E%3Cstrong%3EFirst%20round%3C%2Fstrong%3E%3Cbr%3EEmmanuel%20Macron%3A%2051.1%25%3Cbr%3EFrancois%20Fillon%3A%2024.2%25%3Cbr%3EJean-Luc%20Melenchon%3A%2011.8%25%3Cbr%3EBenoit%20Hamon%3A%207.0%25%3Cbr%3EMarine%20Le%20Pen%3A%202.9%25%3Cbr%3E%3Cbr%3E%3Cstrong%3ESecond%20round%3C%2Fstrong%3E%3Cbr%3EEmmanuel%20Macron%3A%2095.1%25%3Cbr%3EMarine%20Le%20Pen%3A%204.9%25%26nbsp%3B%3C%2Fp%3E%0A
TUESDAY'S ORDER OF PLAY
Centre Court
Starting at 2pm:
Elina Svitolina (UKR) [3] v Jennifer Brady (USA)
Anastasia Pavlyuchenkova (RUS) v Belinda Bencic (SUI [4]
Not before 7pm:
Sofia Kenin (USA) [5] v Elena Rybakina (KAZ)
Maria Sakkari (GRE) v Aryna Sabalenka (BLR) [7]
Court One
Starting at midday:
Karolina Muchova (CZE) v Katerina Siniakova (CZE)
Kristina Mladenovic (FRA) v Aliaksandra Sasnovich (BLR)
Veronika Kudermetova (RUS) v Dayana Yastermska (UKR)
Petra Martic (CRO) [8] v Su-Wei Hsieh (TPE)
Sorana Cirstea (ROU) v Anett Kontaveit (EST)
2018 ICC World Twenty20 Asian Western Sub Regional Qualifier
Event info: The tournament in Kuwait is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.
Teams: UAE, Bahrain, Saudi Arabia, Kuwait, Maldives, Qatar
Friday fixtures: 9.30am (UAE time) - Kuwait v Maldives, Qatar v UAE; 3pm - Saudi Arabia v Bahrain
