Al-Sisi went on to explain how Egypt was negatively impacted by armed conflicts, wars and internal strife all through its immediate surroundings. He noted how conflicts and civil wars have led to the fragmentation and institutional collapse of most neighbouring countries, alluding to catastrophic humanitarian conditions, widespread famine, and the displacement of millions.

On national day Al-Sisi was nonetheless keen to extend a message of confidence and reassurance to all Egyptians. The state, he said, is doing its best to protect the economy from global shocks and financial headwinds. In his own words: “In the face of global challenges, Egypt has been actively working to improve its economic, investment and industrial performance and to integrate with the global trade system.”

Al-Sisi’s message was especially intended for underprivileged and vulnerable classes. He said that, while the state is adjusting to international developments and opening up to the outside world, it is also ensuring that the poor should have sufficient social protection.

It is no secret that most Egyptians have been burdened by high inflation and shortages in essential goods. First, Egypt was seriously impacted by the economic crisis resulting from the Covid-19 pandemic in 2020 and the war in Ukraine in 2022. This grew even worse after the war in Gaza broke out in 2023. Due to these negative developments, Egypt suffered a severe shortage in foreign currency due to the drop in tourism and Suez Canal revenues as well as a spiral rise in imports.

In his speech the president insisted that, thanks to the Egyptian people’s unwavering strength and resilience as well as society’s unity and cohesion, the country has been able to survive the crisis. In fact, there has been a flurry of happy, positive and good news about the Egyptian economy in the most recent period. Recent official figures show that Egypt’s external debt dropped to $153.86 billion at the end of May, down by $14.2 billion – or 8.43 per cent – from its previous level, which had reached $168.03 billion at the end of December 2023.

The happiest item of news, however – published by the Central Bank of Egypt – was that there was tremendous growth in the inflow of foreign currency, which rose by 200 per cent because of remittances from Egyptians abroad more than doubled between early March and the Ras Al-Hikma deal with Emirati investors generated $35 billion.

Egypt’s net foreign reserves hit a record high in June, a development unimaginable a few months ago. Official figures indicate that Egypt’s net foreign exchange reserves rose to just under $46.4 billion. These foreign exchange reserves now cover some 7.9 months of merchandise imports, exceeding internationally recognised safe levels.

Most economic and financial analysts agree that these positive developments augur well for Egypt’s credit rating and the cost of borrowing in international markets, reflecting their confidence in the country’s ability to meet its obligations.

There is no question that Egypt’s internal political stability paved the way for the country’s latest positive economic developments, and the president’s speech suggests we are about to see a new phase of political, economic, and social reforms to be negotiated through a national dialogue already in the process of drawing up a new agenda for the next six years.

There is a general sense of hope that, through determination and hard work, Egypt will manage to build a competitive economy and significantly improve the living standard of its citizens.

* A version of this article appears in print in the 1 August, 2024 edition of Al-Ahram Weekly