The meeting reviews the government’s strategy to boost foreign investment, deepen local manufacturing, and support macroeconomic stability.
Dr. Mohamed Farid:
- Ongoing coordination with credit rating agencies contributes to improving Egypt’s ranking in international indices
- Monetary policy has become more flexible and is now primarily focused on inflation targeting
- Upward trajectory of exports continues in Q1 despite the Red Sea disruptions.
Moody’s Leadership:
- Reforms reflected in credit rating affirmation with a positive outlook.
Dr. Mohamed Farid Saleh, Minister of Investment and Foreign Trade (MIFT Minister), held a meeting at the Egyptian Embassy headquarters in Washington with a delegation from Moody’s Rating; including Ms. Marie Diron, Managing Director for Global Sovereign Credit, and Mr. Mickaël Gondrand, Assistant Vice President.
During the meeting, MIFT Minister reviewed the government’s strategy for addressing regional challenges, as well as its forward-looking vision to enhance foreign direct investment (FDI) inflows and increase industrial growth rates, stressing the adoption of a proactive and decisive approach to tackling regional disruptions.
He noted that decisions to restructure the energy subsidy system—covering gasoline, diesel, electricity, and natural gas for industry—constitute necessary measures to ensure the stability of the State budget and prevent fiscal imbalances.
He further explained that monetary policy has become more flexible, prioritizing inflation targeting, alongside a commitment to exchange rate flexibility to strengthen the economy’s ability to absorb external shocks, reflecting the State’s practical commitment to policy implementation.
He revealed that the share of private investment has risen to 58% of total investments, compared to a historical average of 42%, with the industrial sector achieving growth rates ranging between 9% and 12%, positioning it as the main engine of growth.
He also outlined the MIFT’s plan to localize industry through the expansion of investment zones and industrial cities across governorates and rural areas, and to deepen domestic manufacturing by shifting from assembly to full-scale production, with a focus on electronics, ready-made garments, food industries, and renewable energy sectors.
Regarding foreign trade, MIFT Minister affirmed the continued upward trajectory of exports during the first quarter despite disruptions in the Red Sea, noting exporters’ success in identifying logistical alternatives, most notably reliance on Safaga Port to transport goods to Gulf markets.
Dr. Farid emphasized that the strength of the Egyptian economy lies in its nationally driven reform program, which focuses on structural reforms, improving the business environment, and fostering entrepreneurship, ensuring sustainable growth beyond traditional fiscal and monetary tools.
Mood’s Representatives commended the ongoing economic reforms in Egypt, which have been reflected in the affirmation of Egypt’s credit rating with a positive outlook, assuring that continued structural reforms enhance the economy’s resilience to external pressures and support long-term creditworthiness improvement.
The meeting comes within the framework of the government’s commitment to strengthening engagement with international rating agencies and reaffirming its adherence to the economic reform path, while enhancing investor confidence in the Egyptian economy.
Moody’s Rating is among the world’s leading institutions specializing in assessing the creditworthiness of countries and companies through analyzing their ability to meet financial obligations.
