CAIRO, June 9 – Egypt expects its external financing requirements for the 2026/27 fiscal year to range between $8 billion and $9 billion, with more than half of the funding expected to come from concessional financing provided by international and regional development institutions.
Speaking at the Portfolio Egypt 2026 conference, Finance Minister Ahmed Kouchouk said the government plans to raise approximately $4 billion from international capital markets, broadly in line with its borrowing strategy for the current fiscal year.
According to Kouchouk, Egypt has already identified its financing sources and does not expect any funding gaps during the next fiscal year.
The minister said the country’s financing framework has become more diversified and flexible, allowing authorities to adapt more effectively to changing global market conditions.
Egypt has been working to broaden its investor base and reduce reliance on traditional financing channels by introducing new debt instruments and accessing alternative markets.
Recent issuances, including sovereign sukuk and panda bonds, have helped expand the geographic reach of Egypt’s debt portfolio while attracting new categories of investors.
Kouchouk noted that the government continues to cooperate with regional and international financial institutions to develop innovative financing tools that support long-term funding needs.
The strategy forms part of broader efforts to strengthen external financing resilience amid evolving global financial conditions.
The finance minister said the government’s draft budget targets a primary surplus of 3.5% of GDP, while aiming to reduce the overall budget deficit to approximately 6% of GDP or slightly below.
Egypt has prioritized fiscal consolidation in recent years as part of economic reform programs designed to strengthen public finances and improve macroeconomic stability.
According to Kouchouk, the government is also increasing fiscal buffers to better manage potential external shocks.
Reserve allocations are expected to rise to 4.6% of total government spending, compared with previous levels ranging between 2.5% and 3%.
The higher allocation is intended to provide additional flexibility during periods of economic uncertainty without compromising key fiscal objectives.
Medium-Term Policy Framework
The government is also preparing a new four-year fiscal framework aimed at improving policy predictability and strengthening investor confidence.
In addition, authorities plan to finalize a medium-term tax and revenue strategy before the end of the year.
Officials say the framework will provide greater transparency regarding fiscal policy direction, revenue mobilization efforts and long-term budget planning.
The initiatives are expected to support investor confidence while reinforcing Egypt’s broader strategy of maintaining fiscal discipline, expanding financing options and improving resilience against external economic shocks.
