Rapporteur of the Investment Committee at the National Dialogue Samir Sabri said Fitch Ratings on Egypt indicate the Egyptian economy is going on the right track.
The ratings are sending an assurance message to all institutions to invest in Egypt, he added.
Fitch Ratings, a leading global credit rating agency, revised Egypt’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) outlook from Stable to Positive, while affirming the IDR at ‘B-‘.
The move comes as a nod to Egypt’s strengthened economic resilience and reduced external vulnerabilities.
Sabri said in press statements on Monday that the move comes due to several factors including the development project of Ras al-Hikma with UAE and the transition to a flexible exchange rate policy.
The decision is considered “free propaganda” to the Egyptian economy as it is helping attract and tap new investment horizons in the country, according to him.
The rating agency revealed the key drivers behind the positive outlook, which include: reduced external vulnerability as Egypt has seen a significant reduction in near-term external financing risks, attributed to the Ras al-Hikma deal with the UAE, the adoption of a flexible exchange rate, and tighter monetary policies.
It noted that these measures have unlocked additional financing from international financial institutions (IFI) and led to a resurgence in non-resident inflows to the domestic debt market.
