The data also showed that the total external debt took up 40.3 percent of the GDP in December 2025, compared to 42.5 percent of GDP in December 2024.
Meanwhile, the current account deficit narrowed by 13.6 percent, recording $9.5 billion in the first half of FY 2025/26 (July-December 2025).
The narrowed current account deficit is compared to $10.9 billion recorded in the same period in FY 2024/25.
The data is riding a rise in remittances from Egyptians working abroad, Suez Canal, and tourism revenues.
Remittance inflows from Egyptians working abroad rose 40.5 percent year on year in 2025, reaching $41.5 billion, up from about $29.6 billion in 2024.
This follows a sharp devaluation of the local currency and the CBE hiking the rate interest by a six-percentage-point in March 2024, which narrowed gaps in the domestic hard-currency market and improved formal remittance inflows.
External debt
-
Long-term debt rose to $129.5 billion by the end of December 2025, up by $5.39 billion from $124.1 billion in December 2024.
-
Short-term debt also increased to $34.42 billion by the end of December 2025, taking up 21 percent of GDP, rising by $3.43 billion from $30.9 billion by the end of the same month in 2024, when it took up 20 percent of GDP.
Egypt’s government is aiming to bring down external debt by $1–2 billion annually and lower debt servicing costs to 35 percent of total expenditure over the medium term.
As of April 2026, external debt declined to approximately $77.5 billion from $78.5 billion.
Egypt is planning to extend debt maturities, conduct liability management operations, and increase proceeds from state asset sales to reduce gross financing needs by around 10 percent of GDP over FY2025/26 and FY2026/27.
Moreover, the International Monetary Fund (IMF) underscored debt management as a priority for Egypt as it’s one of the objectives for its affiliated programmes, the Extended Fund Facility (EFF) programme and the Resilience and Sustainability Facility (RSF).
Yet risks remain, as increased inflation and unexpected geopolitical tensions and global inflationary pressures could weigh on growth, tighten financial conditions, and strain Egypt’s external position.
Outstanding debt
Egypt’s Net International Investment Position (NIIP)
This increase in negative net IIP was mainly attributed to the increase in both liabilities and assets as compared to the end of June 2025.
Banks’ net foreign assets
-
Net Foreign Assets of Banks increased by $7.3 billion during 1H FY 2025/26, compared to a loss of $9.2 billion during the same half of the year before.
-
Total of banks’ net foreign assets surged to $12.2 billion by the end of December 2025, compared to a loss of $6.4 billion by the end of December 2024.
This coincides with Egypt’s plan to build its reserves, manage pressure on its currency, and strengthen its ability to withstand external risks and economic shocks linked to regional geopolitical tensions.
The country’s reserves grew throughout 2025 and have continued to do so since the start of 2026, with its latest net international reserves (NIRs) data recording $51.4 billion by the end of December 2025, a monthly increase of 2.4 percent. Most recently, NIRs reached $53.13 billion at the end of May 2026, up from $53 billion at the end of April 2026.
Bonds, notes, and sukuk
-
Total reached $28.8 billion by the end of December 2025, rising by $1.5 billion from $27.3 billion by the end of December 2024.
-
Euro-bonds issued in US dollars grew to almost $19.9 billion by the end of December 2025, rising by $0.3 billion from almost $19.6 billion during the same time period in 2024.
-
Sukuk bonds issued in US dollars amounted to $3.71 billion by the end of the month in 2025, increasing by $2.3 billion, up from $1.45 billion by the end of December 2024.
-
Euro denominated bond reached $3.51 billion by the end of December 2025, compared to almost $3.9 billion by the end of December 2024, a $0.35 billion drop.
-
Samurai bonds issued in Japanese Yen changed marginally, recording $862 million by the end of December 2025, up from $861.3 million in December 2024.
-
Panda bonds issued in Chinese Yuan amounted to $499.7 million by the end of December 2025, growing to $0.50 billion by the end of December 2025, compared to $479.5 million during the same month in 2024, a $20 million increase.
Issuing these investment instruments is a broader strategy to diversify financing tools, reduce borrowing costs, and attract new investor segments, especially for Sukuks as they cater to anyone seeking Sharia-compliant instruments.
Sukuk accounted for 12 percent of all USD-denominated emerging market debt issued in 2024, excluding China, and will remain a key financing tool.
Egypt has recently issued Japanese Yen-denominated sustainability-linked Samurai bonds in Japan, as it seeks to maintain the country’s access to international capital markets, acquire private investments and finance sustainable development priorities.
Egypt’s total investments for the upcoming FY 2026/27 are projected to reach EGP 3.7 trillion, with the investment-to-GDP ratio reaching 17 percent. These issuances help Egypt’s economy remain resilient amid geopolitical conflict and market volatility, lower borrowing costs, expand the investor base, manage debt, and reduce the debt-to-GDP ratio.
Debt expectations
It’s worth noting that the government aims to reduce the debt of budget sector entities to 78 percent of GDP by June 2027, as per its new state budget for FY 2026/27.
Towards the end of 2026, the projected short-term external debt service for the year will amount to $35.3 billion.
The medium- and long-term deposits come mostly from Kuwait and Saudi Arabia. By the end of 2026, the projected deposits from Kuwait will amount to $4.1 billion, while from Saudi Arabia, they are expected to amount to $5.6 billion.
Short link: