Gad spoke with AO about the significance of Egypt's second wave of structural reforms, emphasizing their role in boosting long-term economic growth and enhancing private sector participation.
He noted that improvements in infrastructure, such as renewable energy and transport, are vital for attracting foreign investment and diversifying the economy.
The UK-based multinational Standard Chartered officially launched its full banking operations in Egypt in January 2024, building on nearly two decades of market engagement.
The bank aims to expand its Corporate and Investment Banking services, focusing on sectors aligned with Egypt’s economic priorities.
Looking ahead to 2025, Gad outlined the bank's strategy to deepen its presence in key sectors, support infrastructure development, and explore digital banking opportunities.
He forecasted a positive economic outlook for Egypt in 2025, expecting a GDP growth of around four percent and an inflation decline from 33.6 percent in FY2024 to approximately 21 percent in FY2025.
Gad also highlighted Egypt's strategic location and ongoing reforms as key factors, which make it an attractive market for business in the region.
Moreover, he mentioned a recent high-level event organized by Standard Chartered to discuss Egypt’s economic outlook and foster private-sector partnerships to drive growth amid structural reforms.
Ahram Online: How do you see the second wave of structural and economic reforms that the Egyptian government executed, especially when it comes to empowering the private sector and unleashing its potential?
Mohamed Gad: The second wave of structural reforms in Egypt is critical to driving long-term economic growth.
These reforms, which underscore the government’s commitment to fostering a resilient economy, aim to enhance private sector participation, which is essential for diversifying the economy and fostering sustainable development.
The government’s efforts in improving infrastructure, particularly in sectors like renewable energy, transport, and water, pave the way for broader economic opportunities.
These reforms position Egypt as an attractive destination for foreign investment, which is crucial for unlocking further economic potential. By focusing on these areas, Egypt is setting the foundation for stronger, more resilient growth in the years ahead.
AO: Could you shed light on the bank’s journey in the Egyptian market, mainly since the inauguration of its full-fledged office early this year?
MG: Although our full banking operations in Egypt officially commenced in January 2024, our engagement with the market spans nearly two decades.
We initially operated as a representative office established in 2007, focusing on government-related entities and financial institutions.
However, our ambition to deepen our presence and support Egypt’s economic progress drove us to establish a full banking branch.
Since receiving our license from the Central Bank of Egypt (CBE), we have significantly expanded our operations, focusing on sectors aligned with Egypt’s economic priorities.
Our office in New Cairo today offers a comprehensive suite of Corporate and Investment Banking (CIB) products, providing essential services to sovereign entities, financial institutions, and multinational corporations.
The launch has been met with positive support from clients, officials, and regulators, and we are committed to supporting Egypt’s vision by facilitating trade, investment, and sustainable economic development.
AO: What are Standard Chartered’s plans for the local market in 2025?
MG: Our strategy for Egypt is centred on engaging with well-established global corporates and financial institutions that align with Standard Chartered’s footprint and product capabilities.
By 2025, we aim to deepen our presence in key sectors, deliver milestone transactions, and foster stronger trade corridors between Egypt and our global network.
We focus on supporting infrastructure development, renewable energy, and cross-border trade.
Additionally, we are exploring opportunities in digital banking and fintech to leverage the growing demand for innovative financial solutions.
As the CBE advances its digital transformation agenda, we see significant potential to introduce cutting-edge digital products, enhance client experience, and support Egypt’s digital economy.
AO: What are the bank’s forecasts for Egypt’s macroeconomic indices, such as inflation, GDP growth, and interest rates?
MG: Egypt’s economic outlook shows a positive growth trend, with inflation expected to ease and fiscal reforms continuing to take shape.
We see growth improving, supported by tight policies and the expected easing cycle in 2025.
We project the country’s GDP growth to be around four percent in 2025, supported by fiscal reforms, improved foreign exchange (FX) liquidity, and increased FDI.
Inflation is expected to decline sharply, averaging 21 percent in FY2025, down from 33.6 percent in FY2024. Due to a strong base effect and ongoing fiscal measures, including commodity subsidy reforms, it is expected to drop significantly by Q1 2025.
Furthermore, the CBE is expected to begin an easing cycle in 2025, supported by disinflation and positive real interest rates.
Despite some risks, including potential portfolio outflows and the energy trade balance, we believe these measures will enhance economic stability and create a more favourable investment climate.
AO: How does Standard Chartered perceive Egypt as a market for doing business in the region?
MG: Egypt’s strategic location, deep pool of talent, and ongoing economic reforms make it a key market in the region.
The country’s significance is enhanced by its status as a BRICS member and a gateway to Africa, the Middle East, and Asia.
Recent improvements in FX convertibility, driven by the March 2024 devaluation, have enhanced its appeal as a business destination.
We believe Egypt offers a compelling blend of opportunities for trade, investment, and infrastructure development.
As FX liquidity improves and inflation moderates, the business environment will likely become even more attractive.
AO: Could you touch upon the event that the bank has recently organized in the country?
MG: Standard Chartered recently hosted a high-level event in Egypt, bringing together government officials, corporate leaders, and financial institutions to discuss Egypt’s economic outlook and investment opportunities.
The event focused on how private-sector partnerships can drive growth amid ongoing structural reforms and improving liquidity.
It also underscored our commitment to Egypt’s economic development and provided a platform for stakeholders to explore opportunities in key sectors, including renewable energy and infrastructure.
In addition, it highlighted the bank’s role in facilitating trade and investment flows, particularly in light of the expected easing cycle and improved macroeconomic conditions expected in 2025.
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