Egypt in May 2026: the most important developments in economy
Egypt's economy in May 2026 was shaped by an industrial investment drive alongside pressure on the currency. The government announced plans to localise manufacturing of wind turbines and other strategic industries, expanded incentives and support for industrial projects and exports, and targeted 3.7 trillion Egyptian pounds in investment for fiscal year 2026/27, with 59 percent from the private sector. The sovereign fund and the Industry Ministry announced four industrial investment funds, and Egypt Aluminum announced a $900 million factory expansion. The prime minister inaugurated factories in Sadat and 6th of October cities.
The Egyptian pound weakened to about 53 to the dollar, near its record low, and later recovered. The central bank kept interest rates unchanged and raised its inflation outlook, while the purchasing managers' index fell to 46.6 in April. The World Bank granted Egypt $300 million more for the fallout from the Iran war, and reports said ships were being diverted from the Suez Canal to the route round Africa. Unemployment fell to 6 percent, according to the labour minister.
Energy featured prominently. Egypt signed an oil deal with Algeria, agreed to help rehabilitate Lebanon's gas infrastructure, and said it would clear arrears owed to foreign oil and gas companies by June 10. Cyprus selected Egypt as a gateway for exporting European natural gas, and Egypt said it would begin exporting natural gas to Europe by 2028. BP was reported to be considering selling its gas assets in Egypt.
In agriculture, President Sisi inaugurated the New Delta project to grow wheat in the desert, and local wheat procurement passed 3.2 million tonnes, 64 percent of the target. Separately, Egypt abandoned its goal of wheat self-sufficiency. The foreign minister set a target of $12 billion in trade with India over five years.
by WorldBrief & Maksim Micheliov | AI-generated summary
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