Egypt faces economic strain from regional tensions

Cairo, Oct 10: Egypt is facing extraordinary economic strain from external factors, particularly the ongoing regional conflicts, Egyptian Prime Minister Mostafa Madbouly said in a press conference in Cairo.

He noted that within a week, the crude oil prices increased by 10 per cent to over $80 per barrel due to regional tensions, adding further pressure on the country's economy.

"We're facing challenges we're not responsible for at all, but we have to deal with them due to their direct repercussions on us," Madbouly said, according to Xinhua news agency.

Despite the challenges, "we are very keen on achieving economic growth and attracting investments," Madbouly told the press conference, noting international financial institutions have a positive outlook for Egypt's economy.

He added that Egypt expects $675 million in direct foreign investments within weeks of providing 5G licenses to telecom operators.

Over the past few years, Egypt has suffered from a shortage of foreign currency needed for imports, which led to the devaluation of the local currency and ensuing high 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 seen a financial push after it signed in February a $35 billion investment deal with the United Arab Emirates to develop Ras Al-Hekma, a new resort on Egypt's northern coast.