International institutions
’ praise confirms the soundness of economic policies, which reflects the confidence of the international community in restoring
the stability of the
Egyptian
economy.
In addition to the ranking improvement of the
Egyptian
economy in the international
credit-rating agencies,
and the expectations
of the
financial
institutions
with regard to future growth rates in Egypt. These international
reports contribute to strengthening
foreign investors’ confidence in the Egyptian economy, which would lead to pumping more investments during the coming period.
Doing Business 2019 Report
The World Bank (WB) and IFC announced that Egypt ' s ranking jumped 8 places on Doing Business 2019: " Training for Reform " . The Report tackled the reforms Egypt undertook to enhance the investment climate and simplify the procedures in five (5) fields: companies incorporation, getting credit, protecting small investors, paying taxes, and resolving insolvency (to exit the market) in order to create jobs, attract investments, and increase the economy competitiveness. The Report mentioned that such reforms were the largest to be implemented in Egypt within one year in the previous ten years, and second largest to be implemented by a MENA country this year. Moreover, Egypt witnessed the largest number of reforms compared to the other Arab countries.
The Global Competitiveness Report 2018:
The Global Competitiveness Report 2018 of the World Economic Forum revealed that Egypt is ahead of 46 countries in 2018, up from just 37 countries in 2017. The current year report followed a new methodology in which human capital, openness, innovation, and the ability to achieve
better social results, the level of satisfaction, are more important.Egypt ' s highest ranking is in the innovation indicator where it went up 45 global ranks. In the infrastructure indicator, Egypt ' s rankings rose 15 ranks to be the 56 th this year, after it was the 71 st globally. This is the result of the focus on large-scale infrastructure development projects, including the new Suez Canal and the New Administrative Capital, which lead the world to admit such efforts, in addition to Egypt ' s investments in infrastructure. Egypt ' s ranking improved 4 ranks in labor market efficiency from the last year. All thanks are to new investments, and the private sector ' s investments which contributed to the provision of jobs for youth and women. Moreover, Egypt ' s ranking increased in the market size indicator to be the 24 th globally due to the human power it is known for.
Rand Merchant Bank Selects Egypt as the Best Country for Investment in 2019:
Within the context of the eighth edition of "Where to Invest in Africa" report, Rand Merchant Bank (RMB) selects Egypt as the best country in Africa for investment in 2019, for the second year respectively. Egypt maintained its ranking in the top 10 countries for investment in Africa. The RMB report said that Egypt is an attractive country for investment since it is the largest market in Africa when it comes to the growth domestic production (GDP). Moreover, Egypt is known for the largest investment market in MENA region.
OECD Upgrades Egypt ' s Ranking in Country Risk Classification Index:
In February 2019, the Organization for Economic Cooperation and Development (OECD) upgraded Egypt ' s ranking in the Country Risk Classification to five (5). OECD mentioned in its statement that investment risk in Egypt downgraded from six (6) to five (5). OECD attributed the progress achieved and Egypt ' s ranking upgrade to the reforms implemented by the Egyptian government. Such reforms contributed to the enhancement of the investment climate and the provision of a supportive environment for investment and business. OECD revealed that the upgrade of Egypt's ranking would help to attract more FDI inflows from Europe. It worth mentioning that among 201 countries in OECD's Country Risk Classification Index, only four countries: Egypt, Albania, Kazakhstan and Uzbekistan have improved their ranking.
Fitch Ratings:
Fitch Ratings affirmed Egypt ' s long-term foreign currency credit rating at " B " while maintaining its credit outlook " positive " , which reflects Egypt ' s positive outlook on a number of credit ratings as a result of Egypt ' s Economic Reform Program. Fitch Ratings changed Egypt ' s credit Ratings with regard to the long-term foreign currency Issuer Default Ratings (IDR) from " B " to " B+ " .
Moody ' s Corporation for Credit Rating:
" Moody ' s " credit rating agency upgraded Egypt ' s sovereign rating, it mentioned that the economic reforms contributed to enhance Egypt ' s fiscal position and stimulate its economic growth. The agency also upgraded Egypt ' s long-term foreign and local currency issuer ratings from B3 to B2, and changed its future outlook from positive to stable.
Standard and Poor ' s:
Standard and Poor ' s (S&P) credit rating agency upgraded Egypt ' s sovereign rating from " -B " to " B " . According to S&P Report 2018, it mentioned that Egypt ' s progress to implement the structural reforms contributed to enhance investments and the GDP. S&P also cited that the structural reforms in Egypt aim at achieving and maintaining the macroeconomic stability and stimulate growth, along with other factors that helped prompting Egypt ' s current account deficit, including having competitive exchange rate, increasing domestic gas production, and rising exports .
last update July 2019
