Egypt’s stock market is off to its best start in over a decade, with the country’s main index, the EGX30, gaining 18.5% so far this year—its strongest early-year rally in dollar terms since 2012. The surge has been fueled by renewed foreign investment, a stabilizing currency, and improving economic sentiment.
Over the past 12 months, the EGX30 soared as much as 70% before settling around a still-impressive 64% gain, making Egypt one of the Middle East’s top-performing markets. Market capitalization briefly topped $70 billion for the first time in history, though it eased slightly to near $68 billion amid concerns about regional tensions.
Analysts say the rally reflects growing investor confidence in Egypt’s economic outlook, helped by a rebound in the Egyptian pound since its flotation in early 2024 and a shift toward more market-friendly policies over the past two years.
The Central Bank of Egypt has helped boost sentiment by cutting its main lending rate to 19%—a total reduction of 800 basis points in the last year—as inflation cools. Headline inflation dropped to 10.1% in January, edging closer to single digits for the first time since early 2022.
External factors have also played a role. A weaker US dollar and lower oil prices have supported capital inflows, while record tourism—19 million visitors in 2025—and stronger remittance flows have bolstered foreign reserves.
Still, economists warn that structural reforms, particularly the privatization of state-owned enterprises, have been slow to materialize. While recent fiscal policies have shored up short-term confidence, deeper asset sales and broader reforms are seen as crucial for sustaining Egypt’s economic momentum in the years ahead.
