Speaking at his weekly press conference, Madbouly said the IMF concluded in its latest programme review that the Egyptian economy had sustained only limited damage from the conflict due to the government's early response and precautionary measures.
The IMF reached a staff-level agreement with Egypt earlier this week on the seventh review of the country’s $8 billion Extended Fund Facility (EFF) programme and the second review under the Resilience and Sustainability Facility (RSF). This could unlock approximately $1.64 billion in fresh financing upon the fund’s approval.
Egypt still has the current seventh review and the final review under the EFF programme, which will end in December.
The Prime Minister also noted that Egypt has achieved all IMF programme objectives for economic reform, such as lowering the primary surplus and debt, and narrowing the budget deficit to achieve macroeconomic stability.
The state’s new budget for FY2026/2027, which started on Wednesday, targets a 5 percent primary surplus, reducing the overall fiscal deficit to 4.9 percent and lowering the total public debt-to-GDP ratio to 78 percent by June 2027.
It's worth noting that the budget deficit stood at 5.3 percent of GDP during the first ten months of FY 2025/2026, which ended on 30 July. Debt servicing costs have consumed nearly 76 percent of total revenues.
The IMF underscored that Egypt’s economy had remained resilient despite the regional shock caused by the war in the Middle East, as the country continues to actively take steps to lower spending amid the regional conflict and commit to efforts of energy conservation as well as social protection measures.
In March, the government also approved a set of measures to reduce its spending and energy consumption, amid the economic impact of the escalating regional conflict.
Downside risks remain, however, including renewed geopolitical tensions and global inflationary pressures that could weigh on growth, tighten financial conditions, and strain Egypt’s external position.
Egypt will also continue to ensure that energy needs are met, as consumption increases by 15-20 percent over the summer months due to high temperatures, according to the Prime Minister.
Meanwhile, four firms have been provisionally or temporarily listed or registered on the Egyptian Exchange (EGX), as part of the state’s public offering (IPO) programme. This brings the total of provisionally listed firms to 20, a target that was to be achieved by the end of the last FY 2025/2026, Madbouly confirmed.
The temporary registration is the “first step when the government aims to list a firm on the bourse. By listing, I don’t mean with the intent to sell but to increase capital or to list a company’s stake, to be acquired by citizens and other companies to maximise returns on state-owned assets,” the Prime Minister said.
The government will continue to list more firms until the end of 2026, whether by increasing capital or selling stakes.
This marks the start of a broader government plan to bring 10 petroleum companies and 20 public business sector companies to the stock market to expand private sector participation, deepen capital markets, and attract investment.
Egypt’s IPO and divestment programme will also bring more private capital into the economy, improve corporate governance, and deepen the stock market.
Three of the four firms were related to the petroleum sector: Engineering for the Petroleum & Process Industries (ENPPI), Egyptian Linear Alkyl Benzene Company (ELAB), and Marine Petroleum Services (MPS).
In other related news, during the cabinet meeting, firms Nefertiti for Battery Energy Storage S.A.E and Horus for Battery Energy Storage S.A.E. received golden licenses under the domestic investment system.
The companies are special purpose vehicles (SPVs) established under an agreement among Emirati renewable energy developer AMEA Power, China Energy Engineering Company (CEEC), and China Energy International Company (CEIG) to build two battery energy storage system (BESS) plants and a factory in Egypt.
The licenses are for the design, construction, production, management, operation, and maintenance of energy storage battery systems.
Nefertiti for Battery Energy Storage’s license allows it to establish the 1,000-megawatt-hour (MWh) BESS plant over a plot of land exceeding 214,000 square meters in the Benban area in Aswan. The land is allocated to the New and Renewable Energy Authority.
The company's project has $450 million in investment and will create around 1,650 jobs.
The Horus for Battery Energy Storage firm’s license allocates a plot of land exceeding 177,000 square metres for a 500-MWh BESS plant in the Zafarana area of Suez governorate.
This project has $350 million in investment and will create approximately 1,400 job opportunities.
Both projects aim to reduce environmental impact and carbon emissions, and to increase the availability of sustainable natural resources. The projects also align with the country’s aims to reduce its fuel consumption, ensure grid stability, and secure the electricity supply amid rising demand and global market volatility.
Furthermore, the cabinet approved a new project under the special free zone system. It allowed Bony Egypt for Textile Industry, the Egyptian subsidiary of Turkish socks manufacturer Bony Tekstil, to engage in textile manufacturing through a factory with an $82 million investment.
It will be allocated on a plot of land of around 75,245 square metres, managed by SDM Development and Management Company, a subsidiary of ElSewedy Electric, in the 10th of Ramadan City.
It will provide job opportunities for around 2,500 Egyptian workers and 50 foreign workers.
The project aims to export all of its production, which will reach 75 million pieces in the first year and 150 million in the second.
This move aligns with Egypt’s plan to deepen local manufacturing and its industrial sector as part of its National Industrial Strategy. It wants to attract export-oriented manufacturing, particularly in textiles, as Egypt’s exports declined due to the conflict as of the first quarter of 2026.
The government aims to increase the industrial sector's contribution to GDP from 15 to 20 percent by 2030, and it is expected to account for 64 percent of growth in FY 2026/27.
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