The upgrade of Egypt’s credit rating by Standard & Poor’s from B- to B for the first time in 7 years has garnered significant attention and praise from economic experts and private sector representatives, following Egypt’s successful implementation of an ambitious reform program focused on restructuring the economy, expanding private sector participation, stabilizing the exchange rate, and creating an investment-friendly environment.

Economic expert Hani Qaddah praised Standard & Poor’s for upgrading Egypt’s credit rating from B- to B for the first time in 7 years and Fitch for maintaining its rating with a stable outlook, emphasizing that these decisions represent a shift in international institutions’ perception of the Egyptian economy and reflect growing confidence in the comprehensive economic reform path implemented by the state.

Qaddah stated that the credit rating improvement resulted from significant government efforts and direct structural and financial reforms that enhanced the economy’s resilience to global fluctuations, alongside flexible policies adopted by the central bank and government to balance financial stability and growth stimulation.

He added that data from Standard & Poor’s and Fitch clearly indicate the international financial community’s recognition of the Egyptian economy’s flexibility, improved external sector indicators, and growth rate increase to 4.4% in 2025 compared to 2.4% in 2024, alongside achieving a strong primary surplus of 3.6% and reducing government debt.

He pointed out that these positive developments directly boost investor confidence, reduce external financing costs, expand the international investor base in the Egyptian market, enhance foreign direct investment inflows, and support the state’s ability to finance development projects more efficiently and at lower cost.

Qaddah confirmed that ongoing economic and structural reforms, especially those related to enhancing private sector participation and expanding the tax base without imposing additional burdens, represent one of the most important pillars of financial sustainability and long-term growth, noting that private sector investments grew by over 70% and tax revenues increased by 35%, reflecting real improvement in the business environment and the attractiveness of the Egyptian market.

He stressed that the next phase requires maintaining and deepening the momentum of reforms, focusing on improving the investment climate, continuing fiscal discipline, and supporting innovation and productivity to ensure the sustainability of this positive path and consolidate Egypt’s position as one of the fastest-growing and most competitive economies in the region.

Dr. Khaled Al-Shafie, head of the Capital Center for Economic Studies, agreed with Hani Qaddah’s remarks regarding the shift in global institutions’ view of the Egyptian economy, affirming that rating agencies clearly see the results of the deep reforms the state is implementing on the ground, not just at the level of financial indicators.

Al-Shafie explained that the real significance of this development is not limited to the rating upgrade but lies in restoring global market confidence in Egypt’s ability to achieve self-sustained growth without excessive reliance on external financing, representing a qualitative shift in the outlook for the national economy’s future.

He added that the credit rating improvement practically means lower financing costs for Egypt and the private sector, reduced debt insurance costs, and increased attractiveness of Egyptian debt instruments in international markets, opening the door for new investment flows, especially in productive sectors that support exports and create jobs.

He pointed to the noticeable improvement in economic indicators, such as the rising growth rate and increased foreign investment inflows, making Cairo one of the top foreign investment destinations over the past two years, indicating the success of economic and structural reform steps and achieving a balance between fiscal discipline and economic activity stimulation, which was lacking in previous economic systems.

Al-Shafie confirmed that the upcoming challenge is to convert international confidence into sustained direct investment on the ground by accelerating structural reforms, speeding up government privatization programs, simplifying procedures, and expanding the private sector’s role, noting that continuing this path will transform the positive rating from a mere “financial signal” into tangible developmental reality felt by citizens through job opportunities and improved services.

He said that Egypt’s credit rating upgrade is not the end of the road but the beginning of a new phase of work to consolidate economic stability, enhance production and exports, and achieve Egypt’s 2030 strategy targeting exports of $145 billion, exchange rate flexibility, and investment attraction.

Standard & Poor’s and Fitch each issued reports confirming that their decisions are based on ongoing structural reforms, the presence of a flexible exchange rate, increased foreign direct investment inflows, improved external sector indicators, fiscal discipline, achieving a large primary surplus of 3.6% during the last fiscal year, reducing government debt, raising the growth rate to 4.4% in 2025 compared to 2.4% in 2024, increased economic flexibility, improved investment environment, and enhanced private sector participation, which saw investment growth exceeding 70%, alongside financial reforms aimed at expanding the tax base with a 35% growth in tax revenues without additional burdens due to implemented tax facilitation packages.