Egypt’s net international reserves rose slightly to US$50.215 billion in November, up from US$50.071 billion a month earlier, the Central Bank of Egypt (CBE) said, offering a modest boost as the country continues efforts to stabilise its economy and manage high external financing needs.
The US$144 million increase, while small, reinforces a gradual upward trend seen throughout 2025 as Cairo works to rebuild investor confidence and strengthen its foreign-currency position after several years of acute balance-of-payments pressures.
Egypt’s reserves are held in a mix of major currencies the US dollar, euro, British pound, Japanese yen and Chinese yuan and act as a key buffer for the import-dependent North African economy. They support payments for essential imports such as fuel, wheat and medicine, help service external debt, and serve as insurance against global financial shocks.
Foreign investment push continues
The government also signalled renewed momentum on its investment drive in November. The New Urban Communities Authority (NUCA) said it is preparing to sign a partnership agreement with Qatari Diar Real Estate Investment Company to develop a sprawling integrated urban project in the Alam El-Rum area along Egypt’s Mediterranean coast.
Valued at US$29 billion, the project will be implemented under a revenue-sharing model, in line with Egypt’s recent shift toward partnerships that bring in foreign capital while limiting immediate pressure on state finances. The deal, if finalised, would be one of the country’s largest real-estate investments in years.
Background: reserves crucial amid economic strain
The slight rise in reserves comes at a sensitive time. Egypt remains one of the Middle East’s most indebted economies, with external debt surpassing US$170 billion in recent years. Although the government has secured multi-billion-dollar support packages from the IMF, the EU, and Gulf states, high debt-service costs continue to absorb a large share of foreign-currency inflows.
The country has faced several rounds of currency devaluation since 2022, driven by global inflation, rising interest rates and capital outflows from emerging markets. These pressures pushed the CBE to tighten monetary policy sharply and prioritise rebuilding reserve buffers to stabilise the pound and maintain import continuity.
By early 2024, Egypt adopted a more flexible exchange-rate system as part of an expanded IMF programme. The move unlocked additional financing but also triggered short-term inflation spikes and higher borrowing costs. The government responded with fiscal tightening, subsidy reforms, and a renewed push to attract foreign direct investment, particularly from Gulf sovereign funds.
Tourism, Suez Canal revenues and remittances Egypt’s traditional sources of hard currency have shown mixed performance. While tourism has recovered, canal revenues came under pressure following regional tensions that disrupted Red Sea shipping routes. Remittances improved in 2025 but remain vulnerable to global labour-market conditions.
These dynamics have made reserve accumulation both slower and more urgent. Even modest monthly increases are closely watched as indicators of whether Cairo can meet its heavy external payment schedule without further currency volatility.
Gulf investments remain lifeline
The expected NUCA–Qatari Diar deal underscores the pivotal role Gulf investors continue to play in Egypt’s economic stabilisation strategy. Qatar, Saudi Arabia and the UAE have stepped up acquisitions and joint ventures in real estate, logistics, ports, energy and tourism sectors seen as providing quick foreign-currency inflows.
Analysts say such partnerships will be crucial for Egypt’s medium-term outlook, especially as the government accelerates privatisation plans under its State Ownership Policy.
For now, November’s reserve increase offers a small sign of stability, even as Cairo continues navigating a demanding mix of structural reforms, heavy debt obligations and global financial uncertainty.
