Egypt’s overall balance of payments (BoP) deficit narrowed by 2.9% to $1.8bn during the first nine months of fiscal year (FY) 2025/26, compared with $1.9bn in the same period a year earlier, supported by stronger foreign direct investment (FDI), rising workers’ remittances, and higher tourism and Suez Canal revenues, according to the Central Bank of Egypt (CBE).
The CBE said the capital and financial account recorded net inflows of $9.9bn during the July–March period, up from $7.7bn a year earlier, largely driven by a surge in FDI despite significant portfolio investment outflows linked to regional geopolitical tensions.
Net FDI inflows into Egypt rose to $13bn from $9.8bn in the corresponding period of FY2024/25. The figure included $3.5bn in inflows recorded during October–December 2025 under the execution of the Alam El-Roum investment deal.
However, portfolio investments recorded a net outflow of $4.4bn, reversing net inflows of $2.1bn in the previous year. The CBE attributed the decline mainly to net outflows of $9.5bn during January–March 2026, coinciding with the outbreak of conflict in the Middle East.
Meanwhile, the current account deficit widened to $14.6bn as the merchandise trade deficit increased by 24.6% to $47.8bn.
The deterioration was driven by a wider non-oil trade deficit, which rose by $6.7bn, or 23.8%, to $34.7bn as non-oil imports increased at a faster pace than exports. Non-oil imports climbed 15.6% to $61.9bn, largely reflecting higher imports of intermediate goods, which accounted for 44.3% of the increase and are considered essential inputs for domestic production and economic growth.
Non-oil exports also improved, rising 6.6% to $27.3bn, supported by stronger shipments of fresh and processed vegetables, household electrical appliances, ready-made garments, and fresh and dried fruits.
The oil trade deficit widened by 26.8% to $13.1bn as oil imports increased 19.5% to $17.3bn, mainly due to higher imports of natural gas and crude oil. Oil exports edged up to $4.2bn, supported by increased exports of natural gas and refined petroleum products, although crude oil exports declined.
The investment income deficit also widened by 18.2% to $14.4bn as investment income payments rose faster than receipts.
Despite the wider current account deficit, the CBE said several external inflows helped offset the deterioration.
Remittances from Egyptians working abroad surged by 32% to $34.9bn, compared with $26.4bn in the same period of the previous fiscal year.
Tourism revenues increased by 14.9% to $14.4bn from $12.5bn, while Suez Canal transit receipts rose by 22.1% to $3.2bn as shipping activity continued to recover. The increase was supported by an 18.5% rise in net tonnage to 426.9 million tonnes and a 7.6% increase in the number of transiting vessels to around 10,000.
Within the capital and financial account, FDI into non-oil sectors reached a net inflow of $13.5bn.
Greenfield investments and capital increases in existing companies generated net inflows of $7.2bn, including the $3.5bn received under the Alam El-Roum deal. Reinvested earnings rose to $4.5bn, while real estate investments by non-residents remained stable at $1.6bn. Net proceeds from the sale of local entities to non-residents also increased to $430.9m.
By contrast, FDI in the oil and mineral resources sector recorded a net outflow of $482.4m, compared with a net inflow of $669.6m a year earlier. The shift reflected lower greenfield investment by foreign energy companies and higher cost recovery payments for exploration, development, and production activities.
The CBE also reported that the change in banks’ assets and the central bank’s non-reserve assets resulted in a net outflow of $3.4bn, compared with just $156.2m a year earlier, while changes in the CBE’s liabilities recorded a net outflow of $1.7bn.
Meanwhile, medium- and long-term loans and facilities registered net disbursements of $2.7bn, reversing net repayments of $2.6bn in the corresponding period of the previous fiscal year. Total loan disbursements increased to $8.2bn, while principal repayments declined to $5.5bn from $10.1bn, contributing to stronger capital inflows during the reporting period.
