Egypt\u2019s 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\u2019 remittances, and higher tourism and Suez Canal revenues, according to the Central Bank of Egypt (CBE).<\/p>\n
The CBE said the capital and financial account recorded net inflows of $9.9bn during the July\u2013March 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.<\/p>\n
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\u2013December 2025 under the execution of the Alam El-Roum investment deal.<\/p>\n
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\u2013March 2026, coinciding with the outbreak of conflict in the Middle East.<\/p>\n
Meanwhile, the current account deficit widened to $14.6bn as the merchandise trade deficit increased by 24.6% to $47.8bn.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The investment income deficit also widened by 18.2% to $14.4bn as investment income payments rose faster than receipts.<\/p>\n
Despite the wider current account deficit, the CBE said several external inflows helped offset the deterioration.<\/p>\n
Remittances from Egyptians working abroad surged by 32% to $34.9bn, compared with $26.4bn in the same period of the previous fiscal year.<\/p>\n
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.<\/p>\n
Within the capital and financial account, FDI into non-oil sectors reached a net inflow of $13.5bn.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The CBE also reported that the change in banks\u2019 assets and the central bank\u2019s non-reserve assets resulted in a net outflow of $3.4bn, compared with just $156.2m a year earlier, while changes in the CBE\u2019s liabilities recorded a net outflow of $1.7bn.<\/p>\n
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.<\/p>\n
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